O'Malley Plan Would Not Limit Slots to Racetracks
Bill Would Be Much Like One That Assembly Defeated in 2005

By John Wagner
Washington Post Staff Writer
Wednesday, September 26, 2007

Maryland Gov. Martin O'Malley said yesterday that he will propose slot machine gambling legislation "very similar" to a failed 2005 plan that sought to legalize 9,500 machines at racetracks and other locations in Allegany, Anne Arundel, Frederick and Harford counties.

The move, telegraphed in recent weeks, marks a striking departure from O'Malley's position as a candidate last year, when he advocated placing a limited number of machines only at tracks to prop up Maryland's storied horse racing industry.

Aides said the announcement reflected a compromise on an issue that has paralyzed Annapolis in recent years as O'Malley (D) and lawmakers seek consensus on steps to close a $1.7 billion shortfall in next year's budget.

"It's time to put this issue behind us," O'Malley said, speaking at a horse-breeding farm in Baltimore County, at an event designed to highlight the stakes in maintaining the racing industry. "They have been hurt badly by our inability to arrive at a compromise."

Even so, slots is still expected to be among the thorniest of O'Malley's proposals, given continued opposition from key Democrats in the House of Delegates and the possible erosion of Republican support.

"My position on gambling has not changed," House Speaker Michael E. Busch (D-Anne Arundel) said in a statement released yesterday. "I don't think we can expect Marylanders to step up to the plate and pay $2 billion in taxes while unjustly enriching racetrack owners."

Under O'Malley's plan, when fully phased in, the state-owned machines would generate $425 million a year for education and other state programs, O'Malley said. An additional $125 million a year in slots proceeds would go toward construction of education facilities, and $100 million a year would be used to supplement horse racing purses -- a practice in place in neighboring states.

The 2005 measure that O'Malley cited as a model is the only slots bill to have passed the House during the four-year tenure of Gov. Robert L. Ehrlich Jr. (R) -- and it passed with the bare minimum of votes needed. Both Ehrlich and Senate President Thomas V. Mike Miller Jr. (D-Calvert) routinely backed more expansive plans.

O'Malley said the bill he plans to propose in coming weeks will be "very close, with some minor adjustments, to what the House of Delegates has already passed."

Under the 2005 House bill, which died in the Senate, only one existing racetrack in Maryland -- Laurel Park in Anne Arundel -- would have been eligible for a slots license. Other venues were to be off interstates in Frederick and Harford counties and at the financially ailing, state-subsidized Rocky Gap Lodge in Allegany.

O'Malley aides said that the selection of locations is not final and that it is possible the number of machines could exceed 9,500. Miller is pushing for at least 12,000 machines as well as an Eastern Shore location. Prior bills passed by the Senate would have allowed as many as 15,500 machines at seven venues.

The 2005 House bill did not include venues in Prince George's County or Baltimore, two jurisdictions with racetracks but significant community opposition to slot machine gambling. There was no indication yesterday that O'Malley would add venues in either place.

Although portrayed as a bid for compromise and closure, O'Malley's embrace of slots legislation hardly guarantees its passage.

Busch allowed the slots bill to pass in 2005 but has said he remains personally opposed to expanded gambling and would prefer it not be part of the state's long-term solution to its budget woes -- which O'Malley is seeking to address in a special session no later than November.

O'Malley is seeking to raise nearly $400 million in new revenue for transportation priorities and at the same time close the projected $1.7 billion shortfall in the state's general fund.

Busch suggested in his statement that his chamber would explore solutions that do not include slots.

Democratic legislative leaders are expecting little help from Republicans on most budget measures, particularly tax increases. But slots is one initiative that probably will require a significant number of Republican votes to get through the House.

In 2005, 35 of the 43 Republicans supported the bill that passed; 36 of 98 Democrats backed it.

House Minority Leader Anthony J. O'Donnell (R-Calvert) said O'Malley should not take the GOP votes for granted this time, particularly if he proposes a bill similar to the 2005 legislation.

"That was a bill that was loaded with poison," O'Donnell said. "A lot of people voted for it to keep the debate alive, including myself, who weren't too happy with it."

Aaron Meisner, chairman of Stop Slots Maryland, said GOP support for a slots bill is likely to erode for two reasons: The four venues prescribed in the 2005 bill are all in Republican-leaning counties, where constituents will be concerned with increased crime and other social ills associated with slots; and Ehrlich is no longer governor. "These guys are no longer going to be held with their feet to the fire to vote for this bill," he said.

Meisner also expressed disappointment in O'Malley's embrace of slots beyond tracks.

"This is limited slots at the racetracks?" Meisner asked. "I'm a little mystified."

O'Malley said yesterday that legalizing slots in Maryland would "recapture" significant revenue that the state is losing to neighbors where slots are legal.

A recent report issued by his administration said Marylanders who play slots in West Virginia and Delaware are contributing about $150 million a year to those states' tax coffers at a time when Maryland's horse racing industry is at "a distinct competitive disadvantage." Pennsylvania has legalized slots more recently.