O'Malley Delays Gambling Special Session
ANNAPOLIS, Md. (AP) -- Gov. Martin O'Malley won't call a special session to take up gambling expansion next week because lawmakers have yet to reach an agreement, his spokeswoman confirmed Friday.
Although state officials were distracted this week by a powerful storm that created widespread power outages for days, the delay on calling a special session is creating doubt about whether table games like blackjack and a sixth casino will be on the ballot in November for voters to have the final say.
Raquel Guillory, the spokeswoman, wrote in a brief email that the O'Malley administration would "continue to seek consensus."
O'Malley, who convened a work group of House and Senate members as well as administration officials to explore gambling expansion, had earlier mentioned the week of July 9 as the targeted time frame for a special session, if lawmakers could agree. The panel failed to reach an agreement last month.
The sticking point is whether to reduce the state's 67 percent tax rate on gambling proceeds to pave the way for a new casino site in Prince George's County.
Busch, D-Anne Arundel, has said House members of the panel are "98 percent" in agreement to allow table games and a sixth Maryland casino.
However, House members had strong feelings about lowering the tax rate on casino owners. That's because lawmakers approved tax increases for people who make more than $100,000 in gross adjusted income in a special session, which was called to fix the breakdown of a budget agreement at the end of the state's regular 90-day session.
While prospects for a special session appeared to darken because of the delay, time could end up being the hammer that breaks the impasse.
To expand gambling, lawmakers would need to pass legislation before Aug. 20 -- the deadline for approving ballot language. If lawmakers fail to pass legislation in time, gambling expansion can't be considered again until 2014.
That would leave significant money on the table at a time when lawmakers will once again be grappling with how to bridge the rest of the state's structural deficit of roughly half a billion dollars.
State budget analysts estimated that allowing table games at five casinos without a Prince George's casino would net the state about $50 million a year, assuming the state taxes that money at 20 percent. Maryland casinos also could boost employment by about 40 percent in a stabilized year with table games, the analysts said, based on a review of other states.
There is even more money at stake, if the additional casino is approved. Analysts projected the state could receive roughly $100 million from the added casino annually.
The House has the will to allow table games, said Delegate Frank Turner, D-Howard, who was on the work group.
"I think that would be a pretty quick House decision," Turner said Friday.
But Senate President Thomas V. Mike Miller, D-Calvert, has been pushing hard for allowing the casino in Prince George's.
Sen. Richard Madaleno, who was on the work group, said he doubted an agreement could be reached to allow only table games, while delaying action on the additional casino, which would end up requiring another vote by Maryland residents in 2014.
"I don't think there will be that sort of splitting of the issues," Madaleno said Friday.
(Copyright 2012 by The Associated Press. All Rights Reserved.)
