Question 2 - From one who's been there

My wife's cousin, Barb Ickes, is one of the featured columnists for The Quad City Times out in Davenport, IA. It's beautiful country, and reminds me a lot of the Shore, just with more hills and fewer beaches. And cheaper golf.

Illinois allowed riverboat-based slot machines about a decade and a half ago. To hear the riverboat companies tell it, it's been a great success:

With the introduction of the Alton Belle casino, Illinois became the second state to allow riverboat casinos. Argosy's Alton Belle Casino was the first riverboat casino in Illinois, opening its doors in 1991. Now there are 9 major casinos in Illinois, home to riverboat casinos. Taxed at the highest rate in the nation, Illinois casinos have been limited by the government's restrictions and the state is now at the maximum limit for gaming licenses. In spite of restrictions, Illinois casinos still provide guests with a wide range of gaming options to choose from. 

In the real world? Not so much. I wrote to Barb to ask her take as a journalist and a resident who has lived through the legalization of gambling. She's not impressed, to say the least. I asked her for a few words on the topic. Here's her response:

     Impossible to answer in a few words, unless those words are: RUN, don't walk, away from this proposition. There are a few "unlesses", such as; 

     1. Unless the school funding "designations" are part of the state constitution because they'd better be. If not, the state will find ways and reasons to spend this windfall outside of schools. BELIEVE me. That money will go to a general fund so fast that voters will have no idea what hit them. 

     2. Is there assistance in place for gambling addiction? You say "slots," and everyone thinks of some harmless one-armed bandit. We've got blue-haired retirees sitting in front of slot machines at our three local casinos day and night, pissing away their hard-earned retirement, because they regard the casino staff as "family" and because, frankly, they have nothing better to do. Not to mention, of course, that they are completely and utterly HOOKED.

     3.  "...legalized in a limited way..."? HA!!! Your state legislators will get a taste of this easy money, and the slots will pour down like April rain. Mark my words. Five locations!? Give it a year. They'll be wanting to put them in grocery stores. Mark my words. Maybe I already said that.

Granted, the situation in Maryland is much more similar to that of Delaware than Illinois. Delaware legalized video slots at the Harrington Raceway at the State Fair Festival Grounds and at Dover Downs. 

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Delaware legalized slots in the mid-1990s, and Dover Downs opened their slots parlor in 1996. According to The Baltimore Sun, betting on race horses is down 40 percent since slots were introduced. Joe DeFranics, Maryland's racing impresario, liked what he saw back in 1998, and wanted a piece of the action, all while helping the state raise tax money. From the Baltimore City Paper:

Using the very conservative figure of $300 a day per machine--far below what the Delaware tracks take in--slots could bring in from $438 million (for the 4,000 machines proposed in the legislature this year) to $547 million (for the 5,000 machines DeFrancis wants) annually. Under the Delaware model--with the state lottery agency owning the machines and paying out nearly 50 percent "commissions" to the track owners--DeFrancis could rake in between $219 million and $273 million a year.

In the first five months of 1998, the slot machines at the three Delaware racetracks--Delaware Park, Dover Downs, and Harrington--have each netted an average of $361.10 every day. If slots here show that level of play, that could up DeFrancis' take to between $262 million and $327 million.

DeFrancis says the numbers are deceiving, and that it wouldn't be pure profit. But if he staffed each track at approximately the same level as Dover Downs, his payroll would be about $20 million, including all benefits. That would leave him with upwards of $200 million a year, which would mean he could pay for all renovations necessary to accommodate slots within the first year and be completely in the black.

     Maryland currently allows fraternal organizations such as the Veterans of Foreign Wars and American Legion operate video slots, as long as the proceeds are paid out in charitable donations. I've been the recipient of one such donation as a high school coach. American Legion Post 145 gave $1,000 back in 1995 to help my high school's wrestling team with new warm-ups. It was money greatly appreciated and not available through any other source I could procure, anyway. Note to self - start golfing with wealthy people more often...

     So where does that leave us on Question 2? The teachers' association wants it, because they believe the amendment language that says the money will be dedicated to education. Opponents to slots say it won't raise as much money as advertised and will costs the state in addictions treatments. Right now, state polls say it's a winner - according to a Washington Post poll, 62% of Marylanders say they support the question.

     I'll admit, as a teacher, I love the idea of increased funding for schools that's not tied to a tax. I've got a Vote For Question 2 sign in my yard. But the more I think about it, the more I think I'll be taking it down sooner rather than later.

Buying an election

There is heated debate concerning Question 2 on Nov. 4th's Maryland ballot. Simply put, proponents of slots want it passed so they will be legalized in 5 locations throughout the state. One of those locations is Berlin. Question 2 says...

Authorizes the state to issue up to five video lottery licenses for the purpose of raising revenue for education of children in public schools, prekindergarten through grade 12, public school construction and improvements, and construction of capital projects at community colleges and higher education institutions. No more than a total number of 15,000 video lottery terminals may be authorized in the state, and only one license may be issued for each specified location in Anne Arundel, Cecil, Worcester, and Allegany Counties and Baltimore City. Any additional forms or expansion of commercial gaming in Maryland is prohibited, unless approved by a voter referendum.

The MCEA (state teachers' association), AFL-CIO, AFSCME, Maryland Retailers Association and Maryland Chamber of Commerce have all supported the bill. So why, with all this support of diverse groups, does this send a big red flag up for me? From the Associated Press, via Saturday's The Daily Times:

ANNAPOLIS, Md. (AP) — A union that represents state employees has given $500,000 to a pro-slots group according to a filing by the group.

     The half-million dollar contribution by the American Federation of State, County and Municipal Employees was by far the largest among the $611,342 reported by the group, For Maryland For Our Future, during a two-week period this month. The group also said it received $100,000 from family members of and a business affiliated with the owner of an Eastern Shore racetrack that would be eligible for a slots license.

I'm all for education. And I guess we shouldn't be so surprised at political contributions like this. But $100K to help buy the outcome you want? Is this really how we want to decide referenda in this state?