A group of downstate legislators has proposed legislation aimed at providing relief to the state’s three casino-racetracks.
The bill follows some of the recommendations from a commissioned formed to provide relief for the industry, which has seen growing competition from nearby states.
The lead sponsor is state Sen. Bushweller, D-Dover.
The big change is the use online sports betting as a way to raise revenue. As the Delaware State News reported in a recent story, pro sports betting has been a bright spot in the state gaming picture.
The added revenue comes in spite of restrictions that include not being able to bet on individual games. Instead bets are made on three games.
Also, the table game license fee would be eliminated with the state’s share of table game revenues would be reduced. Venues would also receive certain credits for marketing and capital expenditures.
Reductions in revenues would be phased in to reduce the impact on state revenues.
Past efforts to provide relief for casinos have gone nowhere, due in part to concerns over the effect on the state budget. Delaware now has one of the nation’s highest state “ takes” on casino revenues.
Legislators north of the canal have been less than enthusiastic about dealing with the issue. Sponsors of the legislation from both parties reside south of the canal.
The state has also been dealing with a structural budget shortfall that has left little money for relief for the industry.
Two of the state’s three casinos, Dover Downs, and Harrington Raceway are below the canal and represent a big source of jobs.
Dover Downs did manage to post a profit last year after trimming back operations and laying off some staff. Dover Downs is part of a publicly traded company and has to release information to shareholders.
The other two casinos do not have to reveal financial information, and legislators have to require them to do so.
The one northern Delaware casino, Rickman family-owned Delaware Park is a locals establishment that faces competition. But has a much larger local customer base.
Moreover, Delaware Park has less of an impact on the much larger New Castle County economy, making it much easier for upstate legislators to ignore pressures from workers afraid of losing their jobs.
Meanwhile, Dover and to some extent Harrington, are seeing more competition.
This year, a Las Vegas-style MGM casino will open in National Harbor near Washington, D.C., a major market for Dover Downs.
Click here to read the text of the legislation.