Baltimore Sun

As a Feb. 2 bid deadline for five Maryland slots licenses nears, developers interested in building a downtown Baltimore casino are indicating that the city’s expectations of a financial windfall from a gambling project may be unrealistic.

City officials have said they expect all companies interested in erecting a casino on city-owned land south of the Inner Harbor to pay at least $36 million in annual lease payments – on top of a 67 percent state tax on gambling proceeds.

“It’s a huge problem,” said Kenneth R. Banks, a Baltimore developer who has teamed up with Hard Rock International Inc. to make a play for either a Baltimore or Anne Arundel County license.

Likewise, the Harbor Casino Group, which is planning a bid for the 3,750-machine Baltimore license, characterized the city’s lease expectation as “unrealistic” and indicated the Camp Springs-based entity would counter with a less lucrative offer. “A $36 million return to the city on an annual basis would sink the boat,” said Joseph Gaskins, a Harbor Casino official.