Off‑track betting operators propose historical horse‑racing machines; casinos warn of cannibalization
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Summary
House Bill 10 48 would permit historical horse‑racing (HHR) terminals at off‑track betting facilities. OTB operators said HHR would boost local economies and recapture out‑of‑state gambling dollars; casino representatives warned the machines mimic slot play and would cannibalize VLT revenue and reduce state take.
Off‑track betting (OTB) operators asked the Ways and Means Committee to authorize historical horse‑racing (HHR) machines at licensed OTB parlors under House Bill 10 48, saying the devices — which offer pari‑mutuel wagering on previously run races presented in a slot‑like interface — would help small retail OTBs survive declining retail wagering and competition from online sports betting.
Long Shot's owner and other OTB witnesses said retail handle at many OTBs has fallen sharply as bettors migrate to online sportsbooks and out‑of‑state casinos. They said HHR terminals have driven revenue in other states, citing Virginia’s experience where HHR and casinos operate concurrently and the casino market grew despite the newer HHR facilities.
Opponents, including casino operators MGM National Harbor and Hollywood Casino, urged an unfavorable report. They argued the player experience replicates slot‑style play and cited the fiscal note that projected cannibalization of existing Video Lottery Terminal (VLT) revenues and a net negative effect to state revenues under the bill’s initial tax assumptions. MGM lobbyists said Maryland’s current gaming compact and tax structure depend on a limited market and a high VLT tax rate and that adding slot‑like HHR machines in retail OTBs would upset that balance.
Industry consultants and testing-lab witnesses described technical differences between HHR (pari‑mutuel pools based on historical races and handicapping elements) and RNG‑driven slot machines, and estimated up to $151 million in gross gaming revenue and roughly $60 million in potential state taxes under a 2,500‑unit, 500‑unit‑per‑OTB scenario. OTB supporters said proposed amendments would limit HHR deployment near existing casinos and include sliding tax rates up to 40% to reduce cannibalization risk.
The committee did not vote at the hearing; representatives on all sides said they would continue to refine fiscal and legal details.
