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Slot machines do not appear to be the merry budget deficit solution the Maryland had hoped for.  The state allowed for 15,000 slot machines to be operated in the state.  If all those slot machines were spoken for, the state would have received $90 million in fees to help them battle a $2 billion budget deficit.  In stead the state has only received a fraction of that amount with $39.9 million. 

Two bidders, Magna Entertainment Inc. and Empire Resorts failed to come up with the fees for the slot machines requested in their proposals.  Magna requested 3,000 slot machines and Empire request 750 slot machine.  The up front fee is $3 million for every 500 slot machine.

Donald Fry is the chairman of the commission reviewing proposals to decide which bidders will receive licenses.  According to Fry, the seven member commission will discuss the failure to pay on the part of these two bidders next week.  They are waiting to hear back from the attorney general’s office and procurement specialists.  As for now Fry says, “It appears that these do not meet the basic requirements.”

According to Fry a misunderstanding involving the Baltimore City Entertainment Group is largely responsible for the discrepancy in the number of slot machines requested.  The Baltimore City Entertainment Group intends to establish a slot machine parlor in Baltimore.  The confusion came from a document in the group’s proposal that requesting 3,750 slot machines.  However, only enough money for 500 slot machines was included with the proposal.  The intention was to leave room to expand to 3,750 slot machines in the future.

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