Dover Downs Gaming & Entertainment, Inc. reported a slight improvement in second-quarter earnings.
Further improvements are possible as sports betting and a lower revenue sharing percentage with the State of Delaware take hold.
The company’s revenues for the second quarter of 2018 increased 2.3 percent to $44,133,000 compared with $43,141,000 for the second quarter of 2017. Gaming revenues were $33,895,000 compared to $33,227,000 for the second quarter of last year.
Occupancy levels in the Dover Downs Hotel were approximately 85 percent for the second quarter of both years.
Net earnings for the second quarter were $153,000 compared with $33,000 for the second quarter of 2017. The company posted a loss for the first six months of this year of $120,000, compared to $163,000 in red ink a year earlier.
Denis McGlynn, the company’s CEO stated: “I want to take this opportunity to thank the Legislature and the administration for listening to the needs of the casino industry in Delaware. The modification to the gaming tax structure will help us going forward as we continue to improve our performance in this intensely competitive market.”
The company has entered into a definitive merger agreement with Twin River Worldwide Holdings, Inc.
The merger contemplates that Dover Downs stockholders will exchange their Dover Downs stock for Twin River common shares representing 7.225 percent of the equity in the combined company at closing.
The company has a casino, hotel, conference center and offers harness racing.
Shares of Dover Downs were trading at around $3, down from the recent high of about $3.20. Prior to the merger announcement, shares had been trading at around $2.
