A bipartisan effort is underway to provide relief to the state’s beleaguered casino industry.
State Sen. Brian Bushweiler, D-Dover, sponsored the legislation, which has co-sponsors from both parties.
The bill includes some recommendations adopted by the Lottery & Gaming Study Commission in 2015 and the Video Lottery Advisory Council in 2017.
The revenue sharing model is being adjusted in a way that ensures that the state can continue to benefit from video lottery proceeds, ensures continued employment and horse racing at the State’s three video lottery facilities, and ensures that the video lottery agents will be able to reinvest capital in their facilities, a summary of the bill states.
(See copy of the bill below)
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Under the bill, state’s share of gross table game revenues is revised to 15 percent from more than 30 percent and the table game license fee is eliminated.
The state’s share of gross slot machine revenues is calculated by a reinstated and updated tiered structure as provided for in the original 1994 legislation.
The Bill also removes the prohibition against casinos (video lottery agents) operating on Christmas or Easter.
The fiscal note that estimates the effect of the legislation on state revenues has not been completed.
After fiscal problems a few years ago, Delaware’s “take” of casino revenues moved from one of the lowest rates in the nation to one of the highest.
Meanwhile, Maryland and Pennsylvania saturated the Mid-Atlantic region with casinos, including a recently opened MGM destination casino near Washington, D.C.
Previous efforts to provide relief to the industry have come to naught, as the state faces a structural budget deficit and rising health care costs for Medicaid and state employees.
Kent County legislators in a county that accounts for of the state’s three casinos have pushed for relief, but received little support north of the canal.
