Maryland lawmakers want to place a bet on Maryland casinos.
If they change the law to ensure casinos aren’t taxed on losses, casinos say they will be able to bring in high stakes gamblers that would result in increased state revenues. They would also be able to make up for any lost revenue.
The problem, at least initially, is that revenues for casinos would increase by an estimated $800,000 in the first year and the state’s Education Trust Fund would decrease by an estimated $150,000. Local revenues would suffer too, dropping $50,000, state fiscal analysts say.
In effect, the state would be covering any losses casinos incur from their table games revenues.
“It allows the casinos to cover their losses out of the Education Trust Fund,” Del. David Moon, D-Montgomery, argued on the House floor Tuesday.
Under current law, Maryland’s six casino operators keep 80% of their table game revenues, 15% goes to the state’s Education Trust Fund and 5% goes to local jurisdictions. But when a casino loses money on any given day of the year, and it has been unable to recoup those loses over two consecutive days, it must still pay the 20% of the lost revenues.
Click here to read the rest of the article written by Glynis Kazanjian over at the Maryland Reporter