State spends $50 million on (1000) slot machines

[The Straight Story]

State spends $50 million on slot machines

The state's spending panel agreed Wednesday to pay nearly $50 million to buy about 1,000 slot machines for the planned Cecil County casino, overcoming the objections of Comptroller Peter Franchot, who called the contract a "windfall" for the gambling industry.

Members of the Board of Public Works were given just hours to review the deal, in which the state will spend an average of about $46,542 per video lottery terminal — an amount significantly higher than state and industry analysts say each machine should cost.

State lottery officials defended the contract, which authorizes the purchases of machines of widely varying cost from six separate manufacturers, saying it includes hard-won price reductions from the vendors. Also they stressed that the cost includes maintenance and transportation, among other expenses. But the contract shocked Jeffrey Hooke, an industry analyst who said the cost per machine should be closer to $10,000.

"I've just never heard of numbers that big for slots machines," Hooke said. "I'm dumbfounded. It is extremely high."

http://www.baltimoresun.com/news/maryland/politics/bs-md-cecil-slots-contract-20100609,0,1306155.story

[gmoney]

1. Well, depending on their placement, they'll make it back pretty quickly.

Seems like a helluva lot, but then again, you gotta play to win. If the machines take in just $1000 a week each, they'll be paid for in a year.

[LuvNewcastle]

2. This stinks to high heaven.

The casino should be buying slot machines, not the state. I hope they do a full investigation and the knuckleheads who did this are brought to justice.