Maryland Lottery officials failed to collect tens of thousands of dollars from companies improperly operating state-owned slot machines, according to the first state audit of the state’s casinos. The state Office of Legislative Audits, in a review of the State Lottery Agency from March 2008 to March 2011, discovered errors in the agency’s oversight of manufacturers charged with fixing broken slot machines at casinos in Cecil and Worcester counties.
Auditors estimate that roughly $60,000 could have been charged to manufacturers who failed to fix inoperable slot machines in the required amount of time, although an exact calculation couldn’t be made because of a lack of full reports from the lottery agency.
While Maryland’s casinos are owned independently, the slot machines are owned and leased by the state.
| Thousands of slot machines could be coming to Maryland as more casino licenses are approved across the state. And even more could arrive if the General Assembly and voters statewide approve a sixth casino site in Prince George’s. |
| Slot machine distribution |
| Anne Arundel County (Maryland Live!): 4,750 |
| Baltimore: 3,750 |
| Cecil County (Hollywood Casino Perryville): 2,500 |
| Worcester County (Casino at Ocean Downs): 2,500 |
| Allegany County: 1,500 |
In a response to the audit, Maryland Lottery Director Stephen Martino said officials have implemented procedures to monitor slot machines and properly assess damages from operators that fail to fix machines after 90 minutes.
Officials collected $22,000 for damages between February 2011 and February 2012, according to the letter.
“While we continue to improve processes moving forward, we are pleased that there were no findings of financial improprieties, internal control failures, inappropriate or weak policies and procedures, or any
repeat findings” over the course of the audit, said spokeswoman Carole Everett.
Chief Legislative Auditor Bruce Myers said the errors amounted to hiccups in a relatively new venture for the state’s lottery agency — Maryland’s first casino opened in Cecil County in September 2010, followed shortly after by a casino on the Eastern Shore in January 2011.
At the start of the casino’s operations, “there’s a million things that had to be done, and some of this is fine-tuning,” Myers said.
The audit’s release comes one week before the opening of the state’s third casino, Maryland Live! in Anne Arundel County, scheduled to open June 6.
State officials are banking on the opening of Maryland Live! to boost slots earnings, which have lagged the revenues promised by state lawmakers when legislation authorizing gambling passed the General Assembly in 2007 and a voter referendum in November 2008.
Lawmakers are scheduled to meet Friday morning to discuss an expansion of gambling in Maryland that would allow table games at all the state’s casino sites and permit a sixth casino at National Harbor in Prince George’s County.
