Slots: Yes or No?

October 14, 2008
By

Blair Lee

By Blair Lee | The Gazette

On Nov. 4, more than a million Marylanders will wait in line to cast their meaningless votes for president. News flash: The outcome is already certain: Obama wins Maryland by 12 to 20 points. Take it to the bank.

So let’s discuss Maryland’s other election, the referendum legalizing 15,000 slot machines in five locations statewide. Slots — like abortion, gun control, capital punishment and Sarah Palin — is an emotional issue upon which good people disagree. But you won’t find much consistency or moral clarity in Maryland’s slots history.

A robust slots industry thrived in Southern Maryland from World War II until 1968 when the state legislature, responding to widespread moral outcry, outlawed the one-armed bandits. Then, two years later, the state introduced the state lottery.

In the 2002 governor’s race, Bob Ehrlich pushed slots as a means of closing the state’s looming budget deficit. But House Dems blocked Governor Ehrlich’s slots bills throughout his term, denying him a legislative victory and forcing him to raise fees and raid other funds. This anti-slots posture was a partisan set-up so the Dems and media could blast Ehrlich in his 2006 re-election bid for “failing to solve the budget crisis” and “for raising tuitions and raiding transportation funds.” Governor Ehrlich even offered to send slots to public referendum but House Speaker Mike Busch refused.

After the election, with one-party rule safely restored, the sides switched. Most of the anti-slots Dems turned pro-slots and the pro-slots Republicans turned anti-slots (so much for the “morality” issue).

But so many Democratic lawmakers were locked into their anti-slots stance back home that legislative leaders couldn’t muster a majority for a slots bill. So, instead, they manufactured a subterfuge, sending slots to public referendum.

The Dems/media spin went like this: “The slots debate has paralyzed Annapolis so now the voters must break the logjam.”

This rationale was, of course, ludicrous. Lacking legislative votes is no reason for a referendum and if “legislative deadlock” is the criteria, why isn’t the death penalty sent to referendum too? (Answer: Because the public will approve it.)

But the referendum ploy gave anti-slots lawmakers political cover — they weren’t voting for slots, they innocently explained, they were voting to let you decide slots. And the media went along with the con.

Nor do either of the opposing generals in the slots battle have clean hands. Gov. Martin O’Malley, the pro-slots leader, previously called slots “morally bankrupt” and said their use should be strictly limited. Likewise, Comptroller Peter Franchot, the anti-slots crusader, once co-sponsored slots legislation.

Now, six weeks before the election here’s how things stand. Slots proponents include slots players tired of busing to Delaware; state government leaders looking for more revenue; the racetrack and horse industry clutching slots as their salvation; gambling interests who will make billions; state government spending recipients (teachers, university regents, counties and cities) afraid of budget cuts and business groups (Chamber of Commerce, retailers, Board of Trade, GBC) afraid of tax hikes.

Their pitch goes like this: The $400 million Maryland slots players spend out of state should be kept home; there’s no moral issue because we already legalized the lottery; slots revenue will eliminate higher taxes and spending cuts; slots will save the horse industry and preserve Maryland’s AAA bond rating and slots is a “voluntary tax” paid by old ladies, not the poor.

The anti-slots coalition includes churches, good government types (League of Woman Voters), the newspapers, independent voters (52 percent against, 38 percent for), blacks (46 percent against, 43 percent for) and Montgomery County residents.

Their pitch goes like this: The state shouldn’t prey on people’s gambling addictions; slots opens the door to crime, prostitution and family ruin; can casinos be far behind; outside slots interests will become a major corrupting influence in Annapolis; why prop-up the obsolete horse racing industry; slots revenues are uncertain, unreliable and will drain from people’s other spending including the lottery; don’t let state leaders pass slots by holding schools, roads and the AAA bond rating hostage and finally, fiscal discipline, not slots, is the only way to get Maryland’s financial house in order.

The deck is stacked against the anti-slots groups. For instance, many voters’ first exposure to the issue will be in the voting booth when they actually read the ballot question. But the ballot language, crafted by the O’Malley administration, says the slots revenues will go to the “education of children in public schools” without mentioning the millions going to the gambling interests of other beneficiaries.

Nor does the language explain that the so-called “education fund” financed by slots is a sham. As the new slots money pours into the education fund, the governor and the legislature can simultaneously reduce the state’s current education funding commitments by the same amount so that there is no net gain.

Once the Oct. 10 deadline for contributions disclosure passes, millions of gambling dollars will flood Maryland for pro-slots TV ads. Meanwhile, the penniless anti-slots coalition must rely on church sermons and newspaper editorials to carry its message.

The wild card is African-American voter turnout. If a tidal wave of blacks shows up we know they’ll vote 95 percent for Obama. But how will they vote on slots? Funny, the Maryland election that’s already certain may decide the yet uncertain slots referendum.

Blair Lee is CEO of Lee Development Group.

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One Response to Slots: Yes or No?

  1. shannon gillette on October 25, 2010 at 6:01 pm

    No all of Cordishs development are poverty developments ..He doesnt care about the people who work for him as long as they make him richer he doesnt care about anything else ..Just think about it slots, mall duh children hang out at the mall , where there is gambling there is drinking.. So there will be people drinking and driving at a place where our children hand out come on most diffently NO NO NO NO

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