"Hold Harmless" provision:
This provision was billed as ensuring that Baltimore City and Anne Arundel County would not be harmed by the opening of the MGM gaming facility in Prince George’s County. It created a formula, without a sunset clause, designed to make certain that their revenues would be no less than before MGM opened.
Since MGM’s opening, both Baltimore City and Anne Arundel County have seen their casino’s gaming revenues increase. Despite their prosperity, the hold harmless provision has resulted in Prince George’s County receiving far less in benefits than its neighbors. Baltimore City, which now generates more than a million dollars more per year today in local impact grant fund revenues than before MGM’s opening, now receives approximately $11M more per year in local impact grant fund revenues distribution as a direct result of the hold harmless provision. Prince George’s County (MGM) generates approximately the same VLT local impact grant fund revenue as Anne Arundel County (Maryland Live), yet we receive about $11M less in distribution because of the hold harmless provision.
Thanks to Jay Krueger for the explanation and analysis.