Special Session Reaps Dividends For Lower Shore

“Infusing Republican Principles into a Democratic Bill”
by Delegate Michael McDermott

The recent Special Session centered on the business of gaming in Maryland. As the governor sought support for the legislation, I was provided an open opportunity to help craft a bill which will do more to support our local interests. This dialogue resulted in significant changes to the bill which will have a tremendous impact across the state, on the lower shore, and, specifically, for Worcester County.

When the original bill was passed in 2007 authorizing casinos in Maryland, a significant portion of our local impact money was sent to Baltimore City (18%) and Prince George’s County ($1 million). This was hardly appropriate as neither entity was being impacted by Ocean Downs. This was found out, after the fact, when somebody decided to read the bill.

My discussions focussed on these kickbacks to the western shore. We also reviewed the restrictions placed on Ocean Downs which are not applied to any other site in the state (they included: no hotel, no convention center, no free food or drinks, and limited entertainment to a single piano player). My discussions with Ocean City Mayor Rick Meehan indicated a strong desire to keep the restrictions in place, but an understanding that some flexibility on the entertainment issue may be reasonable. I expressed this in my negotiations and the mayor also lobbied Senate President Miller and House Speaker Busch.

The result was a bill which addressed the restrictions while relaxing the entertainment provisions. Further, it provided an additional $200,000.00 annual grant to Worcester County and a 5% return of local impact money achieved from table games in Prince George’s County to Worcester County. It also provided relief for the owner/operators by reducing their tax rate from 67% to 57%, a recognition by the Lottery Commission that Ocean Downs has been posting losses over $2 million since opening. It was a good start, but it did not address the 18% transfer to Baltimore City.

With the bill in the House of Delegates, I worked toward the goal of making the bill better. Two amendments were offered which made a significant difference. As a member of the Veteran’s Caucus, I was pleased that we were able to secure support for an amendment allowing American Legion and Veterans of Foreign War Posts in the state to have a few slot machines just as those on the Eastern Shore have had for years. Proceeds will be directed to our veterans through established funds while also supporting the local posts and lodges. This provision had been sought for years and I was happy that the opportunity had finally arrived.

The issue of Baltimore City’s cut of our local impact dollars was also addressed by way of a House amendment. That change will return 100% of the money to us which had previously been given to Baltimore City, and it will happen for all three rural casinos. This was a big win.

It is interesting that the democrats have confessed by this legislation that cutting taxes and reducing regulations are good for business and job growth in Maryland. As many of our businesses are hurting and jobs are on the line, perhaps they will be willing to do for all Maryland business and industry what they have seen as needed for gaming. I will be reminding them on a regular basis.

This legislation will result in thousands of jobs (permanent and temporary) created in Maryland and billions in economic investment. Now the matter will go to the voters in November.

If you believe there is a “war on rural Maryland”, this marks the beginning of reparations.