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Stop Slots, Charlie Metz says
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I recieved the following mass email from Charlie Metz the other day. It speaks for itself:
"On Tuesday, we will be voting on a referendum (Question 2) to amend the Maryland constitution which would SIGNIFICANTLY impact our state in the coming years. I think everyone with a radio or TV has heard that we will be voting on expanding gambling in Maryland, but I have talked to a great number of people who don't know why we are voting on this or are confused by claims in advertisements they are hearing. I have been going to Annapolis for the last five years to testify on various slots bills and have learned a great deal about the gambling industry and how slots would impact our state. If you have a few minutes, I would like to sort through some claims and exaggerations we are hearing.
You can read below why--
1. INTRODUCING SLOTS THROUGH A CONSTITUTIONAL AMENDMENT IS A BAD IDEA
2. SLOTS WILL NOT INCREASE SCHOOL FUNDING
3. SLOTS WILL NOT GUARANTEE LOWER TAXES
4. SLOTS WILL RESULT IN MORE, NOT LESS, MARYLAND MONEY GOING OUT OF STATE
5. SOCIAL COSTS RESULTING FROM SLOTS ARE HUGH!!!
6. SLOTS WILL HAVE AN ADVERSE EFFECT ON THE LOCAL ECONOMY
7. HORSE RACING WILL NOT BE SAVED BY SLOTS AND DOES NOT DESERVE ANY MORE TAXPAYER MONEY
First, an explanation of why we are voting on a constitutional amendment to bring slots to our state. Gov. Ehrlich tried unsuccessfully for four years to have the General Assembly pass slots legislation. Gov. O'Malley realized that trying to get legislation through the Assembly was futile, but found it much easier to have the Assembly pass on to us, the voters, the responsibility of deciding whether to allow slots to come to MD. Bob Ehrlich has been advocating that we vote no to the amendment because he feels, as do many people, that the assembly has the responsibility, and should have the backbone, to decide this very contentious issue.
This amendment is worded to allow five locations in the state to have slots parlors. The locations are Cecil county, Oceans Downs race track near Ocean City, Rocky Gap state park, Laurel, and Baltimore city, at a location several blocks south of M&T Stadium. To change, close, or move any location would require ANOTHER constitutional amendment, which is very cumbersome and time consuming. The enabling legislation which addresses the disbursement of income from the slots parlors also is quite different from that proposed by Gov. Ehrlich. His bills would have required much more money up front, but less overall revenue from the operations of the parlors.
How would bringing slots to Maryland affect us??
EDUCATION FUNDING Proponents claim slots will lead to better schools. However, there is NO provision in the bills which would guarantee a net funding increase for education. The bill provides for a portion of the state proceeds to go into an education fund, but the balance of education funding will still come from the general fund, which can be adjusted (downward)anytime. THERE IS NO GUARANTEE OF INCREASED SCHOOL FUNDING!!! This is a shell game, just like the argument used to introduce the lottery. We were told that when the lottery was introduced to the state our education funding problems would be over. It never happened. Now, to help fund our children's education, we will be relying on a foreign corporation (Magna Entertainment), which will operate at least one slots location. Magna is near bankruptcy and their share price has gone from $173 to under $2 in the last two years. Doesn't sound like a very reliable partner to help fund our state education system, does it??
TAXES Proponents argue that slots will bring in income to cover ever growing budget shortfalls. After receiving an initial 100 million in licensing fees, the state likely will see NO revenue for at least two years before slots are installed and new locations built. Banking on large amounts of revenue from slots may be very short sighted. Two weeks ago, UMBC released a study which said that revenues from slots may be HALF of what is projected. In this tightening credit environment, slots owners may find it difficult or impossible to obtain construction financing. An expert witness for the slots industry testified last year in Annapolis that the revenue split was so small for operators that they could have enough difficulty making a profit that they would be forced to close. This has happened in other locations around the country.
Slots will cut into lottery revenue. Best estimates are the state will lose at least 50 million dollars of lottery revenue a year and Maryland stores will lose at least 12 million dollars in commissions. Importantly, most experts estimate that sales tax revenues will decrease by 2.5% as a result of spending on slots as opposed to other taxable items. This will result in a yearly loss of 115 million dollars of revenue to the state. Recently, gambling revenue has fallen almost 20% in Atlantic City. SLOTS ARE A VERY UNSTABLE REVENUE SOURCE!!!!
KEEPING MARYLAND MONEY IN MARYLAND This is the most ridiculous argument of them all. We have a beach in Maryland--Ocean City. Does this mean everyone in Maryland goes to Ocean City when they go to the beach?? Of course not!! Having slots in five locations in Maryland does not mean everyone going to Atlantic City, Las Vegas, Delaware, Pennsylvania or West Virginia will stop and only gamble in Maryland. We will be lucky to capture half the money being spent by Marylanders at those locations. Most people in Montgomery, Frederick, Carroll, and Harford counties, as well as part of Baltimore county and the Eastern Shore, will be closer to out of state locations. Smokers will still want to go to West Virginia which allows smoking, and Delaware, Pennsylvania, and West Virginia slots locations will still offer free drinks and food, although Maryland will not. We will be very lucky to keep half of the estimated 400 million spent by Marylanders to gamble out of state. Conversely, because at least two locations are expected to be owned by out of state or foreign companies, we will be sending hundreds of millions of Maryland dollars out of the state in the form of their profits. BRINGING SLOTS TO MARYLAND WILL RESULT IN MORE, NOT LESS, MARYLAND MONEY GOING OUT OF STATE.
SOCIAL COSTS WERE ESTIMATED BY UMBC TO BE BETWEEN 228 AND 628 MILLION A YEAR An expert on gambling at the University of Illinois, Professor Earl Grinols, testified in Annapolis that social costs from slots will actually cost THREE times the revenue they bring in. This is the result of increased crime, embezzlement, suicides, child abuse, bankruptcys, and lower worker productivity. Slots are called the crack cocaine of gambling, and they actually change brain chemistry the same way that crack cocaine does. The gambling industry is extremely sophisticated in developing machines and venues which are very addictive. Slot emporiums have replaced their cloth seats with vinyl seats because compulsive gamblers often refuse to leave their seat when they need to use the bathroom. Compulsive gamblers can make up 1-2% of the population and problem gamblers can make up 2-3% of the population. Every compulsive or problem gambler affects on average 7 people close to them. One in five compulsive gamblers will attempt suicide. In Jefferson County, West Virginia, where Charlestown slots are located, crime increased by 82% between 2004 and 2006. SOCIAL COSTS WILL EQUAL OR OUTWEIGH ANY INCREASED REVENUE TO THE STATE.
SLOTS WILL ADVERSELY AFFECT LOCAL BUSINESSES In Atlantic City, there were over 70 independent restaurants before casinos arrived. Within three years, that number shrunk to less than 20. Common sense dictates that Maryland slots emporiums will draw almost exclusively from nearby areas. People only have so much money and by spending it on slots, local businesses--dry cleaners, restaurants, convenience stores, barbers, hair salons--will be seriously affected. Businesses in Ocean City are foursquare against bringing slots to Maryland. We will not be bringing in high rollers from New York, Europe and Asia to play slots. MONEY SPENT ON SLOTS WILL BE MONEY WHICH WOULD HAVE BEEN CIRCULATED IN THE LOCAL ECONOMY.
SLOTS WILL NOT SAVE HORSE RACING AND SHOULD NOT TRY TO Horse racing was a huge sport in the 1930s and 1940s. Since then it has been run into the ground by poor demographics and worse management. Slots at racetracks around the country have not led to greater attendance or interest. We have given the industry hundreds of millions of dollars of taxpayer money in the past. If slots come to Maryland, Joe DeFrancis, who is the former owner of Pimlico, will reap tens of millions of dollars in pay out. He does not deserve it. THE HORSE RACING INDUSTRY DOES NOT DESERVE ANY MORE BREAKS FROM TAXPAYERS!!!!
Out of state slots proponents are massively outspending those opposed to Question 2. The only way they can be defeated is by spreading the word that bringing slots to Maryland is a BAD IDEA!!
Please vote NO on QUESTION 2 and pass this on to everyone on your email list. If you have any questions, or can help at the polls on Tuesday, please call me at 443-255-2546. Thank you very much!!!
Charlie Metz
STOP SLOTS BALTIMORE"
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