ANNAPOLIS, MD (June 17, 2008) - Comptroller Peter Franchot announced today that his enforcement agents will begin to inspect for gambling violations in establishments with liquor licenses in a new effort to crackdown on the proliferation of electronic gaming machines across Maryland. These devices look and function like slot machines, which are currently illegal.
"This fall, voters in Maryland will decide whether we should amend Maryland's constitution and allow the special interests to have their way by flooding our State with thousands of slot machines," said Comptroller Franchot. "But even before Maryland voters have their say, the national gambling industry is already operating illegally in our great State, and today we begin a new crackdown on their activities."
As the chief regulating agency of all alcohol products, the Comptroller's Office currently inspects hundreds of bars and other businesses annually to ensure that they are in compliance with the State's liquor laws. In response to the increased number of illegal gaming incidents in these establishments, the agency recently sent out letters to 7,200 alcohol licensees notifying them that agents will begin inspecting for gambling violations, and will report their findings to local law enforcement officials for possible criminal or civil action. If convicted, businesses could have their liquor licenses revoked or suspended as well as be held responsible for payment of back taxes, coupled with interest and penalties.
During the 2008 session of the Maryland General Assembly, Franchot supported legislation which called for a statewide ban for video-gaming machines. The legislation was signed into law; however, it included an exemption for video poker machines, most of which are located in Baltimore City and County. Despite this legal loophole, the Comptroller vowed to continue working with local law enforcement in all jurisdictions across Maryland to provide them with the necessary resources to crack down on illegal gambling activity.
"For far too long, we as a state have tolerated these knock-off slots by turning a blind-eye to this cash-only enterprise which is ripe for crime, corruption and tax evasion," said Comptroller Franchot. "However, today marks the day that we stop giving a wink and a nod to those individuals who choose to break the law. If any business is running an illegal gaming operation, we have them on our radar screen and we are going to bring them down."
Click here for a copy of the letter which was sent out to businesses. The letter will also appear in the July edition of The Maryland/DC Beverage Journal.
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CONTACT: Warren Hansen, 410-260-7082 (office), 410-212-1475 (cell)
