The midland journal. (Rising Sun, Md.) 1885-1947, 1932-12-30
10000 S6.65O.OO $685.. {


In the first case the bettor actually
lost $1,847.50 on the day. Had the
1870 tax on winning tickets been in eff
feet he would have lost an additional.
$645.25 in taxes, making his total loss
$2,492.75.
In the second case the bettor actual
ly won $1,850.00 on the day. Had the
1870 tax been in effect his winnings
would have been decreased by a tax of
$665.00, making his net profits for the
day $1,185,O0.
In the first case the tax would in
crease the bettor's loss almost $3.50, in
the second case it would decrease the
bettor's winnings slightly more than
$3.50, and under the proposed tax both
a0inner and loser avould pay opprori-
m,ately the same amount of TAG to the
State on the days play.
Perhaps big bettors would not figure
out these results, but believe they
would, and certainly if they did, their
betting would be affected.
do not contend that this method Of
calculation is entirely accurate, but, as
a practical matter, I think it shows
how this 1870 tax would affect bettors.
8. A deduction of 15.4@o from each
Pari-Mutuel pool would certainly re-
suit in greatly decreasing the total
amount of money bet in the course of
season. Much of the money that is
bet at the Pari-Mutuels on any given
day is not new money, but is largely
money that is re-bet. What happens
is that $4,000 or 100000 is bet on the
first race, considerable percentage of
this money is bet again on the second
race, some of it is bet again on the
third race, and so on, and while it is
impossible to figure out just what per-
centage of the pool in each race is new
money and what percentage is money
which has already been bet, it is GER
tainly undeniable that some consider
able percentage of it is re-bet. And if
1870 is to be taken from each pool, it
would, in the course of time, materially
decrease the total amount bet at the
tracks unless new bettors, or old bet
tors with new money, could be secured.
This difficulty becomes clear if you
consider what happens in poker game
in which ''the house" is taking even a
small percentage of each pot. AS
everyone knows, if the game continues
long enough ''the house" will eventu-
ally get all the money, and so with
Pari- Mutuels, what ever is taken from
each pool is not re-bet, and if more
than 1870 is taken, a very consider
able amount of money would soon be
taken completely out of betting circu-
lation.
9. The high water mark in Pari-
Mutuel betting in Maryland was
reached in 1928 when $50, $3.50, 1880
was wagered at the four large tracks.
In the present year only $35, 306, $4,000
! was bet decrease of more than $780,
300, 100000 or approximately 35.43o in
five years. The tracks receive SO of
the amount bet, so that this falling off
in betting means decrease in reve-
nue. of more than $1,150,000.00 from
this item alone, and in addition there
has been a lessening of receipts from
admissions and other sources. The
tracks now pay the State license fee
of $6,000.00 a day for each of the
ninety-two racing days, and 1870 of
the net profits each year, and these
combined items amounted to about
$660,000.00 in 1881. This year, be-
cause of decline in net profits, the
total will be less, but the State is al
ways sure of the 1852, 100000 repre-
sented by the license fees. In addi-
ton, the tracks pay the expenses of
tn Racing Commission, amounting to
between $25,0O0.00 and 100000 a
year, and Pimlico pays $72,0O0.00 in
license fees to Baltimore County.
So far the tracks, despite the de-
cline in revenue, have met these pay
ments and charges, but omission or
cutting of dividends, reductions and
proposed further deductions of purses,
and other economies being effected,
show that they are having difficult
time, and any further material reduc-
ton in betting, with its consequent loss
Of revenue, might result in killing the
goose which lays the golden egg.