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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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