Dover Downs Gaming & Entertainment, Inc. reported a small loss in the first quarter as the company’s CEO reiterated the need for relief from the General Assembly.
The net loss was $239,000 compared with net loss of $352,000 for the first quarter of 2015.
The company’s revenues for the first quarter of 2016 were $44,717,000 compared with $44,338,000 for the first quarter of 2015.
Gaming revenues of $39,358,000 were up 1.5 percent compared to the first quarter of last year, primarily from higher table game revenue.
Other operating revenues were $5,359,000 compared to $5,562,000 last year. Occupancy levels in the Dover Downs Hotel were approximately 74 percent for the first quarter of 2016 compared with approximately 76 percent for the first quarter of 2015.
General and administrative expenses of $1,328,000 were lower than last year, primarily from employee separation costs during the first quarter of last year.
Interest expense decreased to $229,000 during the quarter as a result of lower rates and lower outstanding borrowings.
Denis McGlynn, the company’s president and Chief Executive Officer, stated: “We point out in our recently filed Annual Report to Stockholders that our fate remains in the hands of our state legislature. Recommendations of the legislatively appointed Gaming and Lottery Study Commission need to be enacted for the health of our industry and for thousands of employees whose livelihood depends – directly and indirectly – on having Delaware’s casinos able to compete effectively in the regional marketplace. It is imperative that we re-invest in our facilities and amenities. And if we cannot spend the marketing and promotional dollars that will bring repeat customers into Delaware, they will go to neighboring jurisdictions. Last year, Senate Bill 30 did not advance due to unrelated state budget issues. This year, Senate Bill 183 – which phases in required changes to the revenue sharing model over the next four years – represents what industry experts believe to be the best possible strategic and long-term restructuring model for all stakeholders. It is time for us to enact a long-term solution and we are working diligently with our state legislators toward that end.”
Dover Downs faces a tough battle in convincing the General Assembly;y on the need for the relief, given the lack of interest from northern Delaware legislators.
A recent revenue forecast did not help either since it showed a slight downturn from past projections.
Dover Downs faces the opening this year of the MGM Las Vegas-style casino at National Harbor near Washington, DC. The D.C. area is a key market for Dover Downs.=
