State looking to buy more slot machines
It’s not on this week’s Board of Public Works agenda – but a spokeswoman from the Maryland Lottery Agency says state gambling officials plan to ask for a second batch of slot machines for Penn National’s Hollywood Casino Perryville when the board meets on Wednesday.
Documents obtained by The Sun show that the agency wants to buy 438 machines from a single vendor: Spielo Manufacturing. The price is set at $15.8 million. If passed, the cost of outfitting the Cecil County parlor with 1,500 slots will be $65.2 million.
The Lottery Agency is sensitive to criticism that it is paying too much for the VLT machines and made a point of showing that roughly one third of the cost of the contract is for maintenance fees over five year years. They calculate the average price of each machine is $23,652. Once the maintenance costs are added, the bill to the state will be $36,227 per machine.
The Board earlier this month approved a $49.4 million contract for 1,062 machines to fill the Cecil County parlor. The award included five different venders -- including 290 machines manufactured by Spielo.
The documents also show that the Lottery Agency will meet the 25 percent minority business requirement for the second Cecil contract. The previous contract included 20 percent minority participation, falling short of the 25 percent goal.
The Hollywood Casino is located off I-95 in Cecil County and is set to open in late September.