Cecil County eyed for slots

But economic downturn has fewer people taking chances with their money

‘‘We are eyeing an opportunity in Cecil County,” said Eric Schippers, vice president for public affairs for the Wyomissing, Pa.-based casino and race track operator. ‘‘We don’t have too many details to release at this point, but we hope to soon have more details to provide about an attractive opportunity for us.”

The company would seek to option the land and then provide support for the passage of the slots referendum, he said. If successful, the company would bid to develop a slots facility at the site.

The November vote will decide whether to authorize up to 2,500 slot machines for Cecil County, and 12,500 other machines in four other locations: in Allegany, Anne Arundel and Worcester counties and in Baltimore city.

Legalized gambling is estimated to bring in $700 million a year to the state, and more than half would be dedicated to public schools, which educators said is key to continued progress in student achievement, keeping class sizes down, and recruiting and retaining qualified teachers.

With people paying high fuel and food prices and worried about the economy, fewer people are gambling at casinos, but Penn National is willing to place a bet on the state passing slots and the economy will rebound, Schippers said.

‘‘There’s no question the gaming industry as a whole has not escaped the softness in the industry, but we believe in the long-term future of the gaming industry and certainly the opportunity in Maryland presents an attractive opportunity for growth should the referendum pass,” Schippers said.

Tourism is down in Las Vegas, and states are promoting ‘‘stay at home” vacations. People may be more likely to look at regional gambling casinos, he said.

‘‘But that said, even regional facilities are seeing softness from the economy,” Schippers said. After the November vote, the state would need time to establish rules and regulations and construction of a parlor could take 12 to 14 months, he said.

‘‘It’s tough to opine on what the market will be then,” he said. ‘‘Nobody has a crystal ball.”

On Thursday, the acquisition deal between Penn National Gaming and PNG Acquisition Co. fell apart in large part because of the softening market. PNG was originally to have paid more than $6 billion for Penn National Gaming. As a result of the failed deal, Penn National will receive $1.4 billion, including a $225 million termination fee and purchase of preferred equity.

Comptroller Peter V.R. Franchot (D), a slots critic, said he hopes voters keep companies like Penn National from moving into the state.

‘‘I hate to see the state of Maryland governed by companies like Penn National,” he said. ‘‘This is an out-of-state company in and essentially bottom feeding off the state of Maryland. I can’t think of any other way to describe it.”

Franchot said the hundreds of millions in estimated slots revenue are inflated, particularly with the downturn in gambling and increased competition with surrounding states.

‘‘I often say you might as well put money in the slot machine because you never know what number is going to come out in revenue, because they vary so much,” Franchot said. ‘‘Historically, it’s been recession proof. It no longer is because of the saturation of the market.”

Aaron Meisner, coordinating chairman of Stop Slots Maryland, agreed.

‘‘[Gaming] has lost any recession-proof attributes it might have had,” Meisner said. ‘‘This is something Marylanders should be very concerned about because the revenue estimates put forward ... are extraordinarily optimistic, not just according to me, but according to Moody’s and gambling industry experts.”

Penn National’s final support for passage of the referendum might not have as big of an impact as it could have had in the past, he said.

‘‘They’ll be able to spend even more ridiculous amounts of money,” Meisner said. ‘‘At the end of the campaign, when they’re advertising on television day and night, Marylanders are going to say, ‘These guys seem awfully hungry for this. This seems like too good of a deal.’ It may make people seem uneasy.”

But the pro-slots supporters say the anti-slots camp is not telling people that failure to pass slots will lead to an increase in taxes, a decrease in services or both, said Frederick W. Puddester, chairman of the pro-slots group For Maryland For Our Future, in a statement.

Staff Writer Janel Davis contributed to this report.