It is hard to believe, yet more findings are giving truth to the accusation
that Baltimore's slot machines are generating illegal revenue that could be
costing the state millions in gaming taxes. The most recent evidence comes in
the form of a study conducted by the Abell Foundation in Maryland, which with
the help of journalist Joan Jacobsen, tabulated that over 3,500 video slots in
Baltimore County (primarily located in Baltimore City) are in operation.
And although each and every one of these machines is not built to dispense
cash winnings, the investigatory study shows that winnings are being dispensed
by the businesses that give a home to these machines. Despite the fact the
slots explicitly say they are to be used for "Amusement Only", Baltimore
residents have found a way to do what they please with the machines.
Exact findings from the study report these machines are bringing in a yearly
value ranging from $90 to $180 million. That equates to a minimum of $15
million in tax revenue per year. The large gap in the annual figure is
because there was no way the study could show that all of these machines were
actually participating in the apparent underground gambling ring. Yet,
there is enough verified widespread abuse of the slot machines, that statistical
methods can estimate an average net of winnings being disbursed.
The most concern, however, seems to come from the notion that most of the
this revenue is not being reported to tax collection agencies in
Maryland....Hence, the figures that indicate the state is losing out on vast
amounts of funds that could be used to help schools and social programs.