A state board approved a $49-million contract to buy about 1,000 slot machines for a casino that will become Maryland’s first. The Board of Public Works voted 2-1 to approve the contract with six different vendors for the planned casino near Interstate 95 in Perryville in Cecil County. The contract includes the costs to lease or purchase 1,062 machines and covers installation and maintenance.

Penn National Gaming has a license to operate up to 1,500 machines at the Hollywood Casino, and state lottery officials say plans are in the works to buy more machines. Lawmakers decided the state should purchase the machines to ensure greater oversight. Comptroller Peter Franchot voted against the contract because he did not receive details about the $49-million until just prior to the vote. Franchot questioned why the board was being asked to approve such a large contract with little time for review. He also said he was disappointed that the contract includes only 20-percent minority and women-owned business participation instead of a 25-percent goal. Stephen Martino, director of the Maryland State Lottery Agency, said the state worked up to the last minute to obtain the best price possible and increase minority business participation with manufacturers.

Treasurer Nancy Kopp and Governor Martin O’Malley voted to approve the deal. O’Malley said he wanted to see the location “up and going as soon as possible.” The governor also said his administration is on track to meet the 25-percent goal for minority and women-owned business participation in state contracts overall, which would be a first for any governor’s administration in Maryland.

While Kopp noted that she is not an enthusiastic supporter of gambling, she pointed out that voters approved a constitutional amendment to allow up to 15,000 slot machines in five locations in November of 2008. She also said that while the machines are expensive, the state is getting a high return on the proceeds. Operators will receive 33-percent of the money, less than most operators in other states with slot machines.

The nation’s recession and reluctance by casino operators based on the amount of money they could receive resulted in developers bidding on less than half the potential 15,000 machines when bids first opened early last year. It became clear early on that the state would not generate the hundreds of millions of dollars a year that full implementation could bring.

Another slot machine site could open later this year near Ocean City at the Ocean Downs horse racing track, where problems with asbestos in a building caused delays. A proposal in Anne Arundel County for what would be the largest casino in the state is mired in a court battle brought on by local residents who oppose its location near a popular mall. Potential sites in Baltimore and western Maryland do not have licensed operators yet.