Published: August 22, 2008 09:12 am         

Chamber eyes stance on state slots initiative

Committee recommends considering issue at group’s Thursday meeting

CUMBERLAND — The Allegany County Chamber of Commerce is one step closer toward taking a pro-slots initiative on the November general election ballot.

Members of the legislative committee Wednesday voted to recommend the chamber consider the position at its Thursday meeting at the Bell Tower building. The discussion and vote came one month after Kathy Snyder, president and CEO of the Maryland Chamber of Commerce, visited Cumberland emphasizing the many benefits of voting for slots.

Slots proponents are counting on the estimated $600 million or more in annual funding that can help bridge any deficit the state’s budget is facing. More than $156 million is expected to be generated from slots in fiscal 2011. That amount is projected to climb to $1.3 billion or more by 2013.

Nearly half of all revenue generated is earmarked for the state’s Education Trust Fund for grades K-12, and for public school construction and public higher education construction, including community colleges. Another 5.5 percent is to be distributed to local governments that host slots parlors, while 1.5 percent would be dedicated to a small-, minority- and women-owned business investment account.

Of course, that happens only if a majority of Marylanders on Nov. 4 vote in favor of the referendum to authorize the constitutional amendment allowing slots.

The committee could have recommended one of three options: Take a pro-slots, anti-slots or a neutral position. The decision wasn’t reached without considerable discussion on the issue during the 50-minute meeting.

One particular issue is that Allegany County’s allocation of 1,500 slot machines, or video lottery terminals, is to be housed in a $75-million slots parlor at Rocky Gap State Park. It’s the only location among the five statewide situated on state land. The Sierra Club has come out against the slots because of their potential impact on the natural environment.

The new facility would also not be associated with a horse-racing track. The four other locations include Anne Arundel, Worcester and Cecil counties and the city of Baltimore.

Joe Harman, an advertising consultant for WTBO-GO106FM and a committee member, questioned whether the referendum, which authorizes up to 15,000 slot machines in the five locations, is limited to that figure.

Barb Buehl, chamber president, said many people have the misconception that the passage of the referendum “just opens the door” for an unlimited number of machines. Just as in West Virginia, Buehl said, it would take another constitutional amendment to allow more than 15,000 machines. And in West Virginia, efforts to add more have failed, she said.

Another point of concern is the 5.5 percent to be given to Allegany County to improve the infrastructure surrounding the slots parlor. But Rocky Gap is unique in that the state already takes care of the land through the Department of Natural Resources and State Highway Administration.

Bob Smith, president of the Cumberland/Allegany County Industrial Foundation, said projected revenue from sales tax increases on cigarettes and gas are lower than expected. The gap must be filled from somewhere.

Stephen Spahr, chief of staff and vice president for economic development and government relations at Frostburg State University, questioned whether the $660 million figure was accurate — or whether it, too, could be projected higher than what might be reality, given the state of the economy.

Smith agreed it was just an estimate but noted that gaming in Atlantic City is “booming.” Patsy Koontz, public relations manager at NewPage Corp. in Luke, said Charles Town, W.Va., gaming is “doing very well, too.”

Buehl recommended a road trip to an area slots location.

“I think this is something that we need to continue to be really involved in,” she said.

Contact Kevin Spradlin at kspradlin@times-news.com.