Morning all,

A few people may be kicking themselves today after Dover Downs Gaming and Entertainment saw a 50 percent spike in its stock price after agreeing to merge with a Rhode Island-based gaming company that has several profitable regional casinos.

Had you purchased $1,000 worth of stock in late 2014, the investment would be worth more than $3,500 today – not bad for a one-casino company that had been losing money. Then again, if you bought at the top when shares were trading at more than $16 in 2006 …

The deal may end up with some question marks since it came after the U.S. Supreme Court decision that legalized most sports betting. More importantly, legislation lowered the state’s chokehold on casino revenues.

The previous formula had kept Dover Downs in the red, despite cost-cutting and refinancing of its debt.

The merger will make it easy for a new owner with deeper pockets to pump badly needed marketing and capital improvements into Dover Downs that will allow the venue to get to the lower revenue sharing figure.

But is the next shoe to drop the Rickman family selling all or a large chunk of Delaware Park. This venue could be at break-even status. We don’t know, since the Legislature never insisted on disclosure of financials.

Sales rumors on Delaware Park were frequent a couple of years ago.

After all, investments in the Delaware Park have not been as large as those for Dover Downs. Meanwhile, Delaware Park has a sizeable locals market that the state’s other two racinos lack.

The family already checked out of a racino in the Ocean City by selling the site to Kentucky Derby operator Churchill Downs.

Whatever the case, one argument to be made regarding any current or future deals is the long-term future of the industry that does offer many decent-paying jobs with benefits. Operators with more resources may be preferable to simply allowing the industry to limp along.

Enjoy your Tuesday. The mid-week edition of this newsletter returns tomorrow. – Doug Rainey, publisher.