Dover Downs Gaming & Entertainment, Inc. moved deeper into the loss column in the first quarter of 2014.
The net loss was $1,053,000 compared with a loss of $283,000 for the first quarter of 2013.
Dover Downs and other casino operators have been seeking relief from the high percentage of revenues taken by the state. Delaware moved from having one of the lowest rates in the nation to having one of the highest during a past effort to plug a gap in state revenues.
The company’s revenues for the first quarter of 2014 were $45,477,000 compared with $50,518,000 for the first quarter of 2013.
Gaming revenues were down 12.2% compared to the first quarter of 2013, primarily due to stiff competition, the company reported.
Other operating revenues were up 9.2% compared to last year to $5,695,000. Occupancy levels in the Dover Downs Hotel were approximately 80% for the first quarter of 2014 compared with approximately 84% for the first quarter of 2013, though cash sales were higher than last year. Strong convention business helped improve cash food and beverage sales.
General and administrative expenses of $1,393,000 and depreciation expense of $2,295,000 were both down compared to last year.
Interest expense increased to $460,000 during the quarter as a result of higher interest rates and fees offsetting lower outstanding borrowings.
Denis McGlynn, the Company’s President and Chief Executive Officer, stated: “The fact that the Company paid more than $16 million into the State’s General Fund, more than $4 million for horse racing purses and almost $2.7 million on slot vendor fees during a quarter in which we incurred a $1 million net loss is clear evidence that our current revenue sharing model is out of balance and needs to be reset. This is an issue we continue to pursue with the state and with our current loan agreement set to expire in June, we are hopeful of a speedy resolution during the current legislative session.”
Any relief would be difficult to come up with, given the fact that the state is seeing forecasts of reduced tax revenues, as well as looming difficulties in paying for transportation funding.
