Update of the Legislators' Guide To Video Lottery Terminal Gambling

Chapter 3. Estimating Video Lottery Terminal Revenues in Maryland 14
Exhibit 3.2 details the estimated revenues that would be generated at each facility for
fiscal 2011 through 2013.
Exhibit 3.2
Estimated VLT Revenues Generated by Location
Fiscal 2011-2013
($ in Millions)
FY 2011 FY 2012 FY 2013
Anne Arundel $125.2 $477.9 $546.1
Baltimore City 0.0 265.0 426.7
Cecil 0.0 117.8 189.6
Worcester 31.4 119.8 136.9
Allegany (Rocky Gap) 0.0 38.7 62.3
Total $156.5 $1,019.1 $1,361.6
Source: Department of Legislative Services
WPD Comparisons: DLS and Industry Estimates
As a point of reference, the Innovation Group, a research consulting firm specializing in
gaming issues, was independently commissioned by VLT proponents to examine potential VLT
facilities and revenues in Maryland. The Innovation Group issued a report in the fall of 2007
that estimated the potential gross revenues at five specific site locations that had been identified
in past legislation, assuming a total of 12,500 VLTs in permanent operation. Assumptions
regarding the specific locations and the number of VLTs were as follows: Laurel Park (5,000);
Rocky Gap Resort (1,500); Ocean Downs (2,000); Pimlico (2,000); and Rosecroft Raceway
(2,000). The Innovation Group report estimated that overall revenues at those locations could
have totaled over $1.53 billion in calendar 2011 with an overall average WPD of $337, and
$1.65 billion in revenues in calendar 2012 with an average WPD of $370; these estimates are
well above DLS’ $250 average WPD estimate.
Exhibit 3.3 presents the market segments that the Innovation Group projected would
participate in the Maryland market. The research consulting group’s analysis suggests that the
installation of VLTs in Maryland by 2013 would result in a recapture of 61 percent
($502 million) of revenues that would otherwise flow out of State. According to the Innovation
Group, this recapture would comprise approximately 30 percent of the projected gross Maryland
VLT revenues. A more extensive discussion of this issue may be found in Chapter 6 of this
report.