Dover Downs Gaming & Entertainment, Inc. eked out a profit in the second quarter as competition continued to weigh heavily on the company.
Shares of the company, on Thursday, were trading at $1.43. Shares have traded as high as $3 each during the past year.
A state commission is looking into ways to assist the industry, which has been hit hard by casinos in Maryland and Pennsylvania and a previous increase in the state’s share of gaming revenues. The General Assembly came up with a $8 million to assist the state’s three racinos in the session that concluded at the end of June.
Net earnings for Dover Downs were $491,000 compared with $1,817,000 for the second quarter of 2012.
The company’s revenues for the second quarter of 2013 were $50,048,000 compared with $58,355,000 for the second quarter of 2012. Gaming revenues were $43,177,000 compared to $52,331,000 for the second quarter of last year. The company said competition was largely responsible for the decline.
Other operating revenues improved 14.1% to $6,871,000 for the second quarter of 2013. Occupancy levels in the Dover Downs Hotel were approximately 93% for the second quarter of 2013 and 2012.
The company saw improved room revenue during the quarter from convention business as well as from activity related to the Firefly Music Festival hosted by Dover International Speedway. Many rooms as “comped” to gaming customers. The hotel could also be aided by the likelhy closing of the Dover Sheraton, which is expected to be leased to Delaware State University.
Denis McGlynn, CEO, stated: “This regional market remains extremely competitive. We are hopeful that the recently formed Lottery & Gaming Study Commission established to examine the Delaware gaming industry will be productive, educational and beneficial to all industry stakeholders as the gaming industry deals with the changing operational environment. We are grateful the state has agreed to move forward with this review in light of this dramatically changed marketplace.”
