Archive for the ‘Business’ Category

Slots Face Competition from Md. Neighbors

Tuesday, September 22nd, 2009

CNS photo by Bobby McMahon

High above Route 50 she reclines, sporting a come-hither look and a revealing referee’s uniform. Like the mythical sirens luring sailors toward the rocks with their songs, she tries to entice eastbound drivers with the promise of excitement not found in Maryland.

She is a billboard advertisement from Dover Downs Hotel and Casino, and she has a simple message: “Sports Betting is Coming!” In fact, it’s already here.

As the Video Lottery Facility Location Commission begins deciding on bids this week, the future success of slots could be affected not only by what happens within Maryland, but also by what happens right next door.

Delaware recently began offering limited sports betting (by law, casinos can only offer three game parlays on NFL games), and elected officials in both Pennsylvania and Delaware are considering offering table games like blackjack and roulette in the near future.

But Buddy Roogow, director of the Maryland Lottery, says the new slots parlors will not be adversely affected if states around Maryland begin offering table games. He referenced studies that show slots as the main draw for casino gamers, and said table games and sports betting won’t lure Marylanders over the border.

“I believe that Marylanders who go to casinos in other states will be more likely to stay in Maryland once it opens its facilities,” he says. “That’s independent of whether or not those out of state facilities have sports books or table games.”

by Capital News Service’s Bobby McMahon

Md. Company to Be First H1N1 Vaccine Provider

Friday, September 18th, 2009

Maryland’s MedImmune will be the first manufacturer to provide H1N1 vaccines in United States, the Centers for Disease Control and Prevention announced today.

3.4 million doses of the needle-free nasal spray will be available in the first week of October, says Dr. Jay Butler, chief of 2009 H1N1 Vaccine Task Force.

The number of doses of H1N1 vaccine of all types is eventually expected to increase to 20 million a week.

MedImmune, which has received a U.S. government order for about 13 million doses of the nasal spray, will be manufacturing 40 million to 50 million doses total, says Karen Lancaster from MedImmune’s public relations office.

By Capital News Service’s Sharmina Manandhar

Recession’s Impact

Friday, September 4th, 2009

Maryland Newsline reports that many older Americans have delayed retirement due to rising health care costs and losses in home values and retirement accounts.

How has the recession affected you and your family?

Miller Touts Potential Buyers for Race Courses

Thursday, March 19th, 2009

ANNAPOLIS – Senate President Thomas V. Mike Miller Jr., D-Calvert, might have his “white knight” after all.

Miller said Thursday he’s received calls in the last day from two “very substantial people in Maryland” expressing interest in buying Laurel Park and Pimlico Race Course and keeping the Preakness Stakes in Maryland. He declined to name the potential buyers.

A day earlier, Miller said he hoped a “white knight” would swoop in and purchase the two race courses owned by Magna Entertainment Corp., which filed for bankruptcy protection earlier this month. But he said finding a private buyer might be difficult, and the state was prepared to step in.

On Tuesday, Miller said the state should consider buying the Preakness as a “last-ditch option” and perhaps build its own racetrack in order to keep the storied second jewel of the Triple Crown in Maryland. He said Wednesday he would not oppose a Special Session to facilitate state involvement if the racetracks went up for sale after this legislative session ends.

A longtime horse racing supporter, Miller has previously expressed fear that Laurel Park might be purchased and converted to mixed-use development.

By Capital News Service’s Dylan Waugh

Miller Promises to Keep Preakness in Md.

Wednesday, March 18th, 2009

ANNAPOLIS – A day after suggesting the state could take over the financially-troubled Preakness Stakes if necessary, Senate President Thomas V. Mike Miller Jr., D-Calvert, promised the second jewel of the Triple Crown will remain in Maryland.

“The Preakness is going to stay in Maryland. Period,” Miller told reporters gathered after Wednesday’s Senate session.

Miller again touted the historical and financial value of retaining the Preakness and said he would consider pushing for a Special Session to deal with the issue if the race was put up for sale when the legislature was not in session.

Canada-based Magna Entertainment Corp., which owns the Preakness, Laurel Park and Pimlico Race Course, filed for Chapter 11 bankruptcy protection earlier this month and has signaled all of its assets might be on the block. Maryland legally has the option to match any offer for the Preakness if it’s put up for sale.

Miller said state intervention would be “a matter of last resort.” He would prefer having a private buyer rescue Magna’s beleaguered Maryland holdings, including the Preakness, Miller said.

While retaining the state’s largest one-day sporting event would keep millions of dollars in Maryland, Miller also pointed out the emotional and sentimental damage that would come with losing the race.

“We all remain traumatized by the Colts moving out of Baltimore in the middle of the night,” he said, referring to the covert exit of the Baltimore Colts football team for Indianapolis in 1984.

As he was leaving the Senate chamber, Miller offered a final pledge.

“It’s not leaving, Miller said. “Guaranteed.”

–By Capital News Service’s Dylan Waugh

O’Malley Unveils Stimulus Web Site

Friday, February 27th, 2009

ANNAPOLIS – The passage of the federal stimulus package not only negated the need for Gov. Martin O’Malley to cut 700 state jobs and allowed him to restore proposed education cuts, it gave him a chance to show off a new toy.

O’Malley unveiled a state Web site Friday designed to track the $3.8 billion expected to flow into Maryland from the recently passed American Recovery and Reinvestment Act.

The Web site is modeled after the national recovery.gov initiative.

The governor spent 30 minutes explaining the site, which was projected on the wall behind him. O’Malley left no question as to his favorite part.

“I’m very proud of this map,” O’Malley said as an aide clicked on various counties on the interactive map feature, prompting graphics to appear highlighting the estimated number of jobs created or saved in each locality.

“Pretty cool, huh?” O’Malley asked.

Leaving the podium several times to point to figures on the screen, O’Malley touted the state’s commitment to being “open, transparent and accountable to the public.”

“Every resurfaced road, every repaired bridge, every local school system that will benefit from the Recovery and Reinvestment funds will be tracked on an interactive map,” he said.

Data-driven assessment has long been a valued tool in O’Malley’s toolbox. As mayor of Baltimore, he launched “CitiStat” using data analysis to more efficiently manage the city’s resources.

As governor, he has developed StateStat and BayStat to review state government functioning and the Chesapeake Bay restoration progress, respectively.

O’Malley showed he appreciates more than just numbers and graphs, though.

“That’s my charming, beautiful television face,” O’Malley joked, referring to his image on the site’s front page.

But O’Malley couldn’t resist going back to the map when discussing the complexity of tracking the massive and complex stimulus expenditures.

“It all relates to the map,” O’Malley said. “The map is what allows us to make sense of all of this and be able to track it.”

A few minutes later a reporter asked him whether the Baltimore and Washington metropolitan areas will receive a disproportionate amount of money and how he will ensure statewide equity.

“That’s why the map is so important,” O’Malley responded.

As his presentation was winding down and before reporters could ask him about an upcoming Senate committee vote on the proposed death penalty repeal, O’Malley slowed down and looked toward his aides.

“Anything else on here that I’m not aware of?” O’Malley asked. “Any other neat tricks?”

–By Capital News Service’s Dylan Waugh

Slots Developer Sees Happy Returns

Thursday, February 19th, 2009


ANNAPOLIS – The developer who wants to put slots at Arundel Mills Mall has a rosier outlook than most when it comes to the state’s revenue generating prospects from the controversial machines.

“The revenue that the state hoped to receive is going to be exceeded,” said David Cordish on WYPR’s “Midday with Dan Rodricks” radio show Thursday.

His company, Cordish Cos., intends to build a massive entertainment and gambling facility next to the shopping mall off of Route 100 in Anne Arundel County.

The state received only four complete bids for fewer than half of the 15,000 machines allowed under a referendum Maryland voters passed in November. Even if all 6,550 machines are approved, the state stands to lose about half of the $600 million it promised slots would generate for education.

It might take an extra year for the state to reach its revenue estimates, but it will happen, Cordish said.

Cordish expects other developers, all of whom have submitted bids for fewer than the maximum number allowed for each site, to increase their requests over time.

Cordish has already requested the maximum number of slots for the Anne Arundel County license, 4,750. A state commission isn’t expected to decide on any of the proposals for several months.

One way Cordish doesn’t want to increase slots earnings — putting machines 15 minutes away from Arundel Mills, at BWI-Marshall Airport.

“It would clearly be inappropriate at the airport,” Cordish said. “It would not be a good idea.”

Senate President Thomas V. Mike Miller Jr., D-Calvert, said Tuesday that putting slot machines at Maryland’s biggest airport would be a great way to capture out-of-state money and wouldn’t interfere with the Arundel Mills proposal. Delegate Eric Bromwell, D-Baltimore County, has introduced a bill to put slots at the airport, but it’s not expected to pass the House.

Cordish also said his gambling facility will benefit the surrounding neighborhood by increasing the level of security and adding additional free parking spaces which could be used by mall shoppers.

And despite the state throwing out a bid to put slots at Laurel Park race track for failing to include the licensing fee, Cordish believes his facility will help Maryland’s racing industry more than the Laurel Park bid could have.

“We will do more for racing by having it at Arundel Mills than if we are actually connected to a race track,” he said. “We will maximize revenues for the state.”

Of the slots proceeds, 9.5 percent is designated for horse racing interests.

By Capital News Service’s Dylan Waugh.

Has the Recession Hit Home?

Thursday, February 12th, 2009

How is the recession affecting you personally?

And what should our lawmakers be doing to try to alleviate the crisis?

Share your stories, as these seniors did.

Legislators Skeptical Of Health Insurance Proposal

Thursday, February 12th, 2009

ANNAPOLIS – Lawmakers in the House Health and Government Operations committee appeared skeptical Wednesday of a bill that would increase the percentage of premium money that insurance companies must spend on health care.

Maryland Insurance Administration Commissioner Ralph Tyler tried to convince the committee that by raising the minimum ratio, which currently sits at 60 percent for individual policies and 75 percent for small group policies, the insurance administration could protect consumers from premium rate increases and force insurance companies to be more efficient.

But Delegate Robert Costa, R-Anne Arundel, argued the actions could do the opposite, forcing insurance companies to increase their rates to maintain a profit, or leave the market. He suggested a more gradual increase of loss ratios.

“My concern comes from the fact that we have smaller [insurance companies] already here,” Costa said. “Would it be better to make sure we’re not squeezing all of the juice out of the orange, and instead of having the good sweet orange juice we’re just going to have tomato juice.”

The skepticism about the bill’s effectiveness was bipartisan. Delegate Eric Bromwell, D-Baltimore County, said he feared insurance companies would leave if the medical loss ratios became unprofitable.

“Not that I think we’re in a perfect situation, it’s that I’m afraid of losing what we have,” Bromwell said.

The bill faces fierce opposition from the health insurance companies. Debbie Rivkin, a lobbyist representing the League of Life and Health Insurers and America’s Health Insurance Plans — two insurance trade groups — said that CIGNA is considering returning to Maryland markets, but not if this bill passes.

“The fact that they’re considering to come back in the individual and small group markets is something we should be applauding,” Rifkin said, “And not passing laws that have the potential to stop them from coming into the state.”

- By Capital News Service’s Erich Wagner

Comptroller Takes High Road on Slots

Wednesday, February 4th, 2009

ANNAPOLIS – Two days after the state revealed it received only six bids — two without payments — to construct slot parlors in Maryland, one of slots’ strongest critics during last year’s referendum is calling for teamwork with slots supporters.

State Comptroller Peter Franchot, who once called slots a “fiscal fairytale,” said Wednesday it’s time for state leaders to work toward unity despite past differences over the divisive issue.

“Whether slots performs well or not is frankly irrelevant. The fiscal crisis is so big that we’re all going to have to work together,” Franchot told reporters. “I’m linking up with Gov. (Martin) O’Malley, the Senate president and the speaker to really have a team effort.”

O’Malley strongly supported slots during last November’s statewide referendum.  Franchot campaigned against the measure, which was passed, but said he’s ready to work with the governor.

“We had an adversarial relationship on slots,” Franchot said. “I’ve tried to turn the page on that.”

Franchot cited his transfer of $380 million from a local income tax reserve fund to help offset the state’s budget woes as an example of his willingness to work together.

“In normal years,” he said, “I would have said, ‘no, don’t use that.’”

-By Capital News Service’s Dylan Waugh