Leak or no leak?

[Panhandle Nick]

I have this 72 OMC 225hp, trying to fix a leak or perhaps it's meant to shoot water out of this location? It's doing the same thing on the port side. Before this it had black RTV or something smeared all over the seams. I took it apart, cleaned the surfaces, replaced with a new gasket, O ring inside and new seal that looks like a garden hose gasket. I can't see any passage way that indicates water should be coming out here. Does anyone know if this is intentional or just a bad seal?