Dover Downs Gaming & Entertainment, Inc. ended the year with a loss of $706,000 as the company deals with intense competition and one fo the nation’s higher “take” rates by state government.
Net loss was for the fourth quarter was $516,000, compared with $418,000 a year earlier. The loss for the year was 706,000, compared with net earnings of $13,,000 in 2013.
The loss would have been greater had it not been for assistance from the state that came out of the end of legislative sessions in the last two years. Dover Downs also saw lower interest expenses on debt.
The company’s revenues were $45,711,000 for the fourth quarter of 2014 compared with $46,592,000 for the fourth quarter of 2013.
Gaming revenues of $39,976,000 were down 2.0% compared to the fourth quarter of last year, primarily the result of lower table game revenue.
Hotel occupancy levels were down slightly compared to 2013.
Denis McGlynn, CEO, stated: “During the year just ended, Dover Downs distributed $92 million to the state, the horsemen and the slot machine vendors. The share of gaming revenues we were left with was insufficient to cover all expenses, and as you can see, leaves an otherwise profitable business with a $706,000 loss for the year. Clearly, this demonstrates the irrationality of the current gaming revenue sharing formula and the need for rebalancing. We will continue to make our case for change during the current session of the legislature which runs through June 30.”
