Casinos Generate Nearly $385M for Maryland in FY 2013

Casinos in Maryland contributed to the state's education funds.

Casinos in Maryland contributed to the state's education funds. Patch file photo.
Casinos in Maryland contributed to the state's education funds. Patch file photo.
By Elizabeth Janney

Maryland Lottery officials announced Thursday that the state's four casinos generated a total of more than $600 million in revenue during fiscal year 2013, with more than half of that going toward state and local programs.

Maryland's casinos are located in Perryville (Hollywood Casino), Hanover (Maryland Live!), Berlin (Casino at Ocean Downs) and Cumberland (Rocky Gap Casino Resort).

In sum, these establishments produced $608,348,515 in revenue during the fiscal year ending June 30, according to the Maryland Lottery, which distributes a portion of the funds to the state.

Casinos gave $384,540,606 to the state, with most of that—$284,340,606—earmarked for the Education Trust Fund. Casinos must give 49.25 percent of slot machine proceeds and 20 percent of table game proceeds to the Education Trust Fund, the lottery agency reported.

The Education Trust Fund supports public school construction, public elementary and secondary education, capital improvement projects and early childhood education in Maryland. The FY 2013 casino contribution to the fund marked an increase of $189.8 million from the previous year, according to a statement from the Maryland Lottery

Slots revenue also went to the following causes in fiscal year 2013, according to the Maryland Lottery: 

  • Maryland Horse Racing Purse Dedication ($39.1 million)
  • Local impact grants ($30.7 million)
  • Racetrack Facility Renewal account ($10.8 million)
  • Maryland Lottery and Gaming Control Agency operations ($11.2 million)
  • Small, minority and women-owned businesses ($8.4 million)
Bastante August 14, 2013 at 06:21 AM
The FY14 budget for the Montgomery County Public Schools alone is something like 2. 2 Billion (yes billion with a B). For Baltimore City Public Schools- 1.3 billion. For Baltimore County - 1.3 billion. So the 284 million generated by casinos for the Education Trust Fund is barely a drop in the bucket.
jag August 14, 2013 at 11:35 PM
You are nuts thinking 284 million dollars is a negligible amount.
Bastante August 15, 2013 at 05:49 AM
Yes, I would love to have 284 mill in MY checking account, where it would be a lot of money. But context matters. Let's do the math here, shall we? Maryland has 23 counties plus Baltimore City. Two of those counties = MoCo and Baltimore County, plus Baltimore City - spend 4.8 billion on their public schools. Let's say that each of the other 21 spends an average of a half billion. That's another 10.5 billion. So we are talking about 15.3 billion dollars. That means that the amount the casinos generated is only 1.9% of the amount spent on the public schools in Maryland. Now do you get it? Let me add more context (something a REPORTER writing an article should have done). The law allows this money to replace state education funds. In other words, this is not additional money to the schools. The State can (and has) simply taken that money and used it on other things. Do you get it now?
jag August 15, 2013 at 11:35 AM
Why yes, I do get it. And 2% is far from negligible (and I'm being generous in accepting your extremely flawed "context matters" spiel. The proper context would be comparing the number in relation to the STATE contribution to education, not the whole of local municipal spending on education - you're attempting to compare apples and Cadillacs). Not only is $284m not a negligible income stream, but the total $385 million in direct tax generation, as well as the hundreds of millions more in indirect revenue gains (thousands of employees getting paychecks and spending them, casino customers feeding money into the local and regional economies via service procurement, etc.) are also far from negligible. If the revenue was instead coming from a new $250 a year tax on every household in MD I'm sure you would all of a sudden find the income stream more than something to shrug at. Funny how that works.
Bastante August 15, 2013 at 04:42 PM
Actually do to the tax increase last year that was not locality-adjusted and the fact that we make approximately $11 more than the threshold, my state taxes DID go up that much last year. I absolutely did not get worked up about it, except for the fact that there was no locality adjustment to reflect the fact that a certain amount in Montgomery County is basic middle class whereas that same amount in much of the rest of Maryland would put you into the well-to-do category in terms of purchasing power. So you are just plain wrong. I basically did shrug. My feeling is that those who have more need to help those with less and I didn't mind doing so, again, except for the failure to recognize that a dollar is NOT a dollar everywhere in Maryland. I don't personally care if we have casinos or not. I don't gamble, except for an occasional lottery ticket. I just don't like articles implying that the casinos are doing great things for our public schools when (a) the amount is in fact not much at all and (b) the state then offsets it by using that same amount for other things. There is no net increase for the schools. In essence, it is just being run through the Education Trust Fund. It was a political ploy to get the bill through.


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