Critics say Baltimore slot expectations too high

BALTIMORE, Maryland -- As reported by The (Baltimore) Sun: "As a Feb. 2 bid deadline for five Maryland slots licenses nears, developers interested in building a downtown Baltimore casino are indicating that the city's expectations of a financial windfall from a gambling project may be unrealistic.

"City officials have said they expect all companies interested in erecting a casino on city-owned land south of the Inner Harbor to pay at least $36 million in annual lease payments - on top of a 67 percent state tax on gambling proceeds.

"...Likewise, the Harbor Casino Group, which is planning a bid for the 3,750-machine Baltimore license, characterized the city's lease expectation as 'unrealistic' and indicated the Camp Springs-based entity would counter with a less lucrative offer. 'A $36 million return to the city on an annual basis would sink the boat,' said Joseph Gaskins, a Harbor Casino official.

"...Despite skepticism from gambling analysts and lobbyists that the state tax rate - among the highest in the country - will depress competition for Maryland slots licenses at a time of economic decline, potential bidders such as Hard Rock have been emerging in recent days..."