Maryland Racetracks Might Not Push Slots

[takeout]

http://www.washingtonpost.com/wp-dyn/content/article/2008/03/23/AR2008032301894.html?sid=ST2008032400145

>Under the projections, the five slots venues would keep about $450 million a year. Another $95 million would be earmarked to enhance racing purses at Maryland tracks, including those that do not receive slots licenses, and $34 million would be provided as grants for "facility renewal" at tracks.<

Question: Why in the world should privately owned racetracks receive "facility renewal" grants?

[Kelso]

Question: Why in the world should privately owned racetracks receive "facility renewal" grants?


Same reason as giving fatter purses to the connections ... to provide an incentive to run horses at local tracks which, in turn, improves the demand side of the in-state breeders' market and encourages them to maintain/expand their local operations.

Question: Why no provision for lowering takeout (covered by a portion of the slots profit) to enhance track revenues via larger handles? Provides the same incentive as subsidizing purses.

[takeout]

Good question. They’re sure not providing any incentive for the player. And look at places that already have slots. All of those millions and they still won’t lower takeout and get rid of breakage.