Government as Partner in Gambling Addiction

State Governments set the tax rate and structure for Expanded Gambling [by whatever name].

In this case? It seems every one's projections were wrong and the Gambling Business is losing money.

What other Business would expect to have its tax rate lowered because it made a flawed business decision? A tax rate to which they agreed when they obtained a license.

State Governments become partners in the promotion and success of Gambling Addiction. Somehow, our priorities are skewed.


Casino at Ocean Downs finishes first year of operation in the red
Share of earnings not high enough, owner says
Written by BRIAN SHANE Gannett

BERLIN, Md. -- Though the Casino at Ocean Downs generated nearly $45 million in its first year, the facility still finished 2011 in the red, according to its owner.

Owner William Rickman, who also owns Delaware Park, said the casino's 33 percent share of revenue, which came to about $14.8 million, was not enough to cover the building's operating expenses.

"Unfortunately, we did not do the business we thought we would do, nor what the state projected, nor what we projected, which led to fairly substantial losses for the company for the year," he said.

"I realize it seems like a lot of money, but we as the operators have to cover all those expenses," he said. "We're looking forward to maybe getting some help from the state, because the losses were large enough that they just can't go on indefinitely."

Rickman also said he hopes to work with state officials to lower the casino's tax rate, which by law claims two-thirds of its revenue. He said the level of taxation for what's essentially a seasonal operation "just doesn't work."

When asked if he could provide exact figures to show how much the casino was in the red, Rickman said he has yet to receive the final audit that would show those losses.

"I'm satisfied with the facility -- don't get me wrong, it turned out great -- I'd even like someday for it to grow. But you have to be in the black before you can do that," Rickman said.

According to figures released by the Maryland Lottery, the total revenue generated by Ocean Downs came to $44,927,696.06. That makes the casino, only a year old, a major cog in the county's economy. Its revenues are equal to half the county's entire annual operating budget.

Slots revenue swelled in the summer months, dipped in the shoulder season and stayed down in the winter. Monthly revenue peaked at $5.3 million in July -- a figure 14.3 percent higher than September, the second-busiest month.

The casino took in $3 million in December, the casino's least-busy month since its opening last January.

Ocean Downs provided local governments with $2.47 million in impact grants in 2011, according to the Maryland Lottery. That amount comes from a 5.5 percent tax on total Ocean Downs revenue. All casino taxes combined take 67 percent of its revenues.