The low price of stock in Dover Downs Gaming & Entertainment, Inc. has prompted a notice from the New York Stock Exchange.
The notice was triggered by the price of stock in the company falling below $1 a share. Shares were trading at 95 cents each on Thursday.
A statement from the company indicated a plan will be submitted to move the price per share above the $1 minimum set by the NYSE over 30 trading days;.
The company is then given six months to comply or face de-listing from the exchange. The notice has no immediate impact on shareholders, Dover Downs noted.
Dover Downs has been posting small losses, due to a surge in competition from neighboring Maryland and Pennsylvania and the state’s high “take” on its revenues.
Delaware went from having one of the lowest tax rates on casinos in the nation to one of the highest in dealing with a budget shortfall in 2009, the year of the financial crisis and steep recession.
The high rate remained, even after a long-running economic recovery commenced.
In the previous legislative session, efforts to lower that rate or provide other relief for the state’s three casinos and horse tracks went nowhere as budget-writers struggled with a sluggish revenue picture that is coming in spite of improving economic indicators.
\The budget gaps have also been a struggle for neighboring Maryland, Pennsylvania and New Jersey. Pennsylvania and New Jersey also face problems with funding their employee pension systems.
Other states outside the region, including Minnesota, California and Ohio are beginning to see surpluses after spending cuts or tax increases have taken place.
Prior to 2015, Delaware legislators had provided millions of dollars in relief to the three casino-tracks in two consecutive years.
Legislators in northern Delaware have been especially reluctant to come to the aid of the industry, noting that unlike neighboring states, Delaware casinos did not have to pay upfront fees when gaming become legal in the state in the 1990s.
Dover is the only publicly traded casino company in the state. Harrington and Delaware Park are privately held. Harrington’s ownership is tied to the Delaware State Fair. Shares of the fair are owned by farmers and others in Delaware.
Financial results, other than those supplied to Dover Downs shareholders have not been publicly released.
