Dover Downs Gaming & Entertainment, Inc. reported a loss for the years as the state’s high take on gaming proceeds took a toll
The company’s total revenues were basically unchanged at $44,377,000 for the fourth quarter of 2017 compared with $44,241,000 for the fourth quarter of 2016.
Gaming revenues of $37,966,000 were up 1.2 percent compared to the fourth quarter of last year, primarily the result of the higher table game and sports betting hold percentages.
Other operating revenues were $6,411,000 compared to $6,726,000 for the fourth quarter of last year. Occupancy levels in the Dover Downs Hotel were approximately 80% and 81% for the fourth quarters of 2017 and 2016, respectively.
General and administrative expenses were $1,268,000 for the fourth quarter compared to $1,524,000 last year, from lower employee-related costs.
Interest expense was consistent with last year as a result of lower average outstanding borrowings offset by slightly higher interest rates.
On December 22, 2017, the Tax Cuts and Jobs Act was signed into law. The fourth quarter of 2017 and full-year 2017 results reflect the impact of the new tax law, which resulted in an income tax expense of $662,000, or ($.02) per diluted share, primarily from revaluing the Company’s net deferred tax assets to reflect the recently enacted 21 percent federal corporate tax rate.
Net loss for the fourth quarter was $779,000, compared with net loss of $291,000 last year.
For the year as a whole, total revenues were down slightly $176,924,000 for 2017 compared with $182,292,000 for 2016.
Net loss was ($1,068,000), compared with net earnings of $786,000, or $.02 per diluted share for 2016.
Denis McGlynn, the CEO, stated: “Once again the Company demonstrated substantial gaming operational profitability which once again was totally wiped out by an unfair and outdated gaming revenue-sharing formula.
“Legislation has been introduced to implement a more fair and realistic formula and we hope the Delaware Legislature and Administration will act favorably on it,” McGlynn stated.
Dover Downs Gaming operates one casino, a harness track, a 500-room hotel and meeting facilities.
Gaming operations consist of approximately 2,200 slots and table games including poker.
Harness racing is featured November through April. For more information, visit www.doverdowns.com.
