Evening star. [volume] (Washington, D.C.) 1854-1972, 1949-05-31
Slot Machine
RevenueLags
In 2Counties
Results May Affect
Referendum Thursday
In Prince Georges
By Alex R. Preston
fSeco1ld OF q SeriesJ


Prince Georges County voters.
Experiences of two other South
ern Maryland counties which
adopted this form of approved
gambling as local revenue pro-
ducers may decide for a number
of Prince Georges residents how
they will vote in a referendum
Thursday.
If majority approves the ques-
ton of making legal the operation
Of machines that already flourish
there, Prince Georges will become
the fourth Southern Maryland
county to sanction this type of
amusement. And on June ri
Charles County will decide a SIM
ilar question, thus establishing the
possibility that the entire South
,ern Maryland block of five coun-
ties will be open slot machine
territory.
Anne Arundel County became
the first in the State to have slot
machines when Gov. (now Sem
atoo O'Conor signed bill making
them legal. There was no local
referendum on the question there.
No Tax Cut Results.
Subsequently. however, Gov.
Lane approved referendum bills
for st. Marys and Calvert Coun-
ties and voters in both areas sane
toned slot machines. This is what
has happened:
Despite arguments that the tax
rates would be reduced, the levy
In st. Marys has been increased
from $ls25 to $140 and in CAL
vert the rate of $1.88 has remained
the same.
About $4,000 less than was
predicted by slot machine advo-
Gates has been produced in the
first year of operation in st.
Marys. In Calvert, the revenue
appears to be tagging.
The number of licenses issued
for machines in st. Marys dropped
by more than 200 at the begin
ming of the second year. when
compared with the first year. In
Calvert, the second year has not
started and a similar comparison
cannot,be made. But only frac-
ton of the previously estimated
number of machines there were
actually issued licenses. This
could mean that the counties are
not collecting revenue from all
Of the machines and. tn the case
of St. Marys. the tendency may
be growing to evade the tax. st.
Marys has appointed an inspector
to check on this.
$4,000 for School.
st. Marys has been able to pay
the Government $4,000 for a
new high school at Great Mills.
Calvert is raising money toward
q new $250.000 hospital.
The referendum bill for st.
Marys County was passed by a
special session of the Maryland
General Assembly in November.
l947. A week before the question
was put to the voters in December,
The Star foresaw that the deci-
sion reached would be of signifi-
canoe elsewhere in the State. The
Star said on December /, 1947:
Since the attitude Of St.
Marys residents extends to neigh
boring Calvert, Charles and Prince
Georges Counties, it is believed
legislators from those areas and
elsewhere in the State may take
similar steps at the next session
of the General Assembly to per-
NIT voters to decide the issue"
That is exactly what happened
and. coincidentally, in that order.
After st. Marys voters adopted
the referendum, another special
session of the Legislature was
held early last year. A bill for
Calvert County was approved and
at the regular session this year,
the General Assembly passed the
Charles and Prince Georges
County measures.
According to officials Of st.
Marys County 1872 slot-machine
licenses were issued during the
first year which ended April 80.
The $50 per machine license fee,
plus 51a per cent gross receipts
tax, has produced between SIS. 900
and $4,000. Proponents had
argued 100000 a year would be
produced.
662 Licensed in May.
For the current license year
beginning May /. only 662 licenses
have been issued. The county be-
lieves a considerable number OF
machines were operated Illegally
last year and that the practice
is spreading, so that fewer are
licensed now. The Board OF
County Commissioners has ap-
pointed an inspector to check on
slot machines, as well as on liquor
licenses.
A spokesman for the county
commissioners, who approves slot
machines, was asked about the
tax rate increase from SIPS to
s1.40. He said the rate would have
climbed to s1.60 if the new rev.
enue had not been made available.
w. B. Duke, jr.. president Of the
st. Marys County Council OF
Parent-Teacher Associations, one
of the critics of the plan. still
feels that gambling is highly det-
rimental to the county. A number
of people, he said, are disappointed
over the results obtained.
Mr.. Duke said the feeling still
prevails among opponents that
more money is taken out Of the
county through slot machines
than is produced in revenue for
the county.
$4,000 q Year Forecast.
After Calvert County's law went
into effect July /. there were 488
licenses issued. Time will show
how many of these are renewed,
but it was estimated before the
u n