Maryland’s five casinos have recently submitted their annual recommendations to the state Lottery and Gaming Control Agency, suggesting a number of updates and modifications to be implemented in the current gaming regulations.
In the first place, the state’s gambling venues called for the regulator to reduce the current payouts on slot machines. According to experts, this move would result in millions of dollars being shifted to the casinos as well as the state.
At present, each of the five gambling facilities are required to pay out between 90% and 95% of the money that have been wagered at their slot machines within the course of one year. Their proposal calls for the minimum payout to be lowered to 85%. Thus, the casinos will have their hold, or the bets retained from slot machines, considerably increased.
If the proposal receives the necessary approval, this would probably lead to additional revenue contributed to the state. Although Maryland’s casinos have disposed of a considerable number of slot machines at their premises, those have generated about $622 million over the first eleven months of the fiscal year. Casino operators took a $229-million portion of the overall revenue. About $290 million went to the state Education Trust Fund.
Matthew Heiskell, General Manager of Hollywood Casino Perryville, commented that a major reduction in payouts would not be a good idea for competitive reasons. As mentioned above, there are five casinos operating on the territory of the state and a sixth one is under construction. Furthermore, Maryland is surrounded by states with well-developed gaming industries and will need to make sure that it would not lose customers to those.
As noted in the American Casino Guide, Maryland’s average payout from July 2013 to June 2014 was 90.38%. In comparison, Delaware’s payout was 92.23%, Ohio’s was 91.62%, New Jersey’s was 91.01, Pennsylvania’s was 90.01%, and West Virginia’s was 89.86%. According to Charles LaBoy, Assistant Director for Gaming at the Maryland Lottery and Gaming Control Agency , the state’s five casinos are “in the ballpark” compared to those in surrounding states in their slots floor average.
Casino operators commented that if approved, the proposal would allow them to create more innovative and attractive slots offerings at their venues.
Maryland’s five casinos also called for the state to reduce the lowest average amount that a single slot machine must pay out on what has been bet at it over the course of one year. Under the current regulations, individual slot machines are to pay out 87% of the bets. Casino officials requested a 85% payout per machine, arguing that the current requirement is too high compared to neighboring states.
At present, Pennsylvania and Ohio casinos must pay out 85% per machine, New Jersey requires its venues to pay out a minimum of 83% per machine, West Virginia’s slot machines pay out 80% of all the bets.
Mr. LaBoy pointed out that the Maryland Lottery and Gaming Control Agency does not have the authority to change the individual slot machines payout regulation. Yet, he said that they will look for a certain compromise.
Any changes in the current regulation, which requires for each machine at all five casinos to pay out at least 87% of the bets, should be approved not only by the Maryland gaming regulator but also by the state Joint Committee on Administrative, Executive and Legislative Review.
