Caesars Race to the Bottom in Maryland

Caesars [formerly Harrah's] is salivating to invade the Massachusetts' market at Suffolk Downs in spite of excessive debt and the excessive infrastructure costs to taxpayers.

It looks like any port in a storm from the article below, yet even more interesting is the incentives being offered by the state of Maryland [Massachusetts' future write large!] --

Caesars says it's true to Baltimore
Casino company denies it's attracted to Prince George's site
March 16, 2012
By Michael Dresser and Annie Linskey, The Baltimore Sun

Executives of Caesars Entertainment, the leading bidder for a slots parlor in Baltimore, gave lawmakers explicit assurances Friday that their company will not abandon the city for Prince George's County if the General Assembly approves a casino there.

But a rival casino company described the Caesars position as "nonsensical."

The exchange came after Baltimore lawmakers fired questions at Caesars executives during a city delegation meeting in Annapolis, with some expressing doubt about the company's motives for supporting an expansion of gambling in Maryland.

At issue is Caesars' support for legislation that would allow a sixth casino in Maryland — possibly a gambling palace at the riverside National Harbor complex near the Woodrow Wilson Bridge in Prince George's County — that some lawmakers believe would siphon business from the long-delayed gambling location planned for Baltimore.

That legislation would compensate the state's two existing slots operators and the three sites in the pipeline by letting them expand their gambling offerings to table games such as poker, roulette and craps. The same legislation would lower the state's share of the gambling take in an effort to keep the businesses attractive to operators.

While Caesars has not yet been awarded the license for the downtown Baltimore location, it is the only viable applicant now in the running. But some city lawmakers fear the international casino company has been seduced by Prince George's County Executive Rushern L. Baker's vision of a world-class gambling and entertainment resort at National Harbor.

Del. Samuel I. Rosenberg, a Democrat from Baltimore, was among those questioning why Caesars would support another location so close to the city.

Trevor Busche, Caesars' vice president for corporate development, told the House Ways and Means Committee that his company remains true to Baltimore.

"We are not pursuing any opportunity in Prince George's County — whether at National Harbor or elsewhere," Busche said.

In response to a reporter's question after his testimony, Busche said the company would be open to language in the bill that would exclude a pending applicant from seeking a Prince George's license.

A bill to allow gambling in Prince George's is being opposed by the Baltimore region's other slots operator, the Cordish Cos., which is planning to open the state's largest gambling venue so far at Arundel Mills in June.

Joe Weinberg, a spokesman for Cordish, said his company believes Caesars' stand is "nonsensical."

"Why don't you explain to me how any intelligent company, when asked whether they prefer table games with or without the addition of a massive new competitive site, selects the competition?" Weinberg said.

The Cordish spokesman said the company supports legislation to permit table games, but only at the five casino locations now allowed in Maryland: Arundel Mills, Baltimore, Perryville, Ocean Downs near Ocean City and Rocky Gap outside Cumberland.

Busche made his promise after running into skepticism from Baltimore-area lawmakers in both the delegation meeting and the committee hearing, where the Ways and Means panel was considering a bill that would open the door to a Prince George's casino.

Caesars representatives told delegates the company supports the legislation and encouraged them to adopt further safeguards for Baltimore, which it called "our financial partner" at the downtown site.

Meanwhile, Baker said Prince George's has no interest in luring Caesars away from Baltimore to become the operators of the $1 billion casino-entertainment center he envisions as an international draw to the site on the Potomac. He said he has been working with Mayor Stephanie Rawlings-Blake to ensure that both sites are a financial success.

"It is important to me that Baltimore City and Anne Arundel are held as harmless as possible," he said.


Prince George's casino draws skepticism from other Baltimore-area lawmakers

ANNAPOLIS - Prince George's County Executive Rushern Baker, seeking a referendum on slots to bring a $1 billion casino to National Harbor, says he is confident he has the backing of the county's General Assembly delegation, some of whom gave their first indication of support at a House committee hearing.

But delegates from other jurisdictions have reservations about proposals for a sixth gambling site in Maryland, particularly lawmakers from Baltimore who are wary of the impact the Las Vegas-style casino Baker has proposed would have on a casino in their city.

Citing reports of the state's high expenses for slots and the lack of early returns on revenues, delegates from the Baltimore region questioned the wisdom of approving a sixth casino site -- one that would have the most slot machines in the state -- while also altering the stream of revenue to better favor casino operators, not the state.

"We haven't even implemented our slots venues," said Del. Jon Cardin, D-Baltimore County. "At least three locations aren't up and running yet, and we're already trying to alter a bill it took years to get in the first place."

To attract a developer willing to make the $1 billion investment Baker is asking for at National Harbor, his preferred destination for a casino in Prince George's, officials have proposed shifting 7 percent of slots revenues from the state's education trust fund to casino owners. Casino owners would get 40 percent of revenue instead of the current 33 percent.

Del. Eric Luedtke, D-Montgomery County, said he was frustrated with language in the bill that cut school funding after slots "[were] sold to the state as a way to pay for education."

As Baker was peppered with questions from Baltimore lawmakers -- who pointed out voters rejected a gambling site in Prince George's in 2008 -- members of the county's delegation came to his defense.

Times are different than they were four years ago, said Del. Carolyn J.B. Howard, D-Prince George's.

"I don't want my colleagues to think we can't change our minds," she said.

Del. Jolene Ivey, D-Prince George's, said she's willing to vote for the referendum, despite some concerns with the revenue splits in the bill.

Still, the thought of an additional 4,750 slots in the Baltimore-Washington area left some delegates on the House committee skeptical. Del. Frank Turner, D-Howard County, questioned the accuracy of the estimated effect at other casinos and worried revenue losses could be greater than expected.

"How do we get those projections without the Baltimore facility or the Anne Arundel facility opening?" he said.

Lawmakers' doubts have David Cordish, chairman of the Cordish Cos. and developer of the state's newest casino at Arundel Mills, expecting Baker's casino proposal won't pass the General Assembly.

"I don't think there's anybody serious who thinks that the ministers in Prince George's want this, the council wants it, or anybody wants it," Cordish said before the hearing.