Casino relief bill passes both houses

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Dover Downs
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The General Assembly sent to the governor legislation aimed at providing relief for the state’s troubled racino industry.

A substitute for Senate Bill 144 adjusts the revenue sharing model, which is one of the highest in the nation.

A fiscal note stated that the measure will lower state revenues by $15 million in the first year, rising to $20 million in future years.

Passage by the Senate of the modified bill had been expected. An earlier version of the bill was previously passed by the upper chamber. The final vote in the Senate was 17 to 3, with one absent. 

Gov. John Carney is expected to sign the bill. 

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The bill:

  • Reduces the State’s share of gross table game revenues from 29.4 percent to 15.5 percent.
  • Suspends the table game license fee due June 1, 2019, and continues to suspend the fee in subsequent fiscal years if each agent increases expenditures on marketing, wages, and benefits.
  • Increases purses for horsemen by 0.6 percent, phased-in over two years.
  •  Reduces the state’s share of gross slot machine revenues from 43.5 percent to 41.5 percent or 42.5 percent to 40.5 percent, with additional reductions of 2 percent possible for each video lottery agent starting with the fiscal year beginning July 1, 2019, based on qualified capital expenditures reaching 3 percent of video lottery net proceeds.
  • The Substitute Act also removes the prohibition against video lottery agents operating on Christmas or Easter

The state’s three casinos, which also have horse tracks, have seen revenues drop, due to competition from Pennsylvania and Maryland. After a long slump, Atlantic City opened two casinos on Thursday.

Dover Downs, a publicly traded company, has reported losses in recent years. Delaware Park and Harrington Raceway have not disclosed their finances.

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