Morning all,

Delaware casinos will get some relief from recent legislation but talk of a bonanza is nonexistent.

The General Assembly passed, and the governor signed legislation that makes a modest reduction in the so-called “revenue sharing” formula. Casinos will have to kick in some money on measures aimed at bringing in more customers.

 While the state’s take is still high,  the previous formula bordered on confiscation.

Since legislators are OK with not requiring public disclosures from Delaware Park and Harrington Raceway, we will not know how two of the state’s racinos will fare under the new formula.

In the case of publicly traded  Dover Downs, earnings reports and the stock market provide a clearer picture.  

Officials of the one-casino gaming company have stated that the legislation will have modest impact.

Wall Street seems to feel the same way, with shares of the company up from a low of 76 cents a share in late  2014 to $1.93 on July 3.

Cost cutting and measures to lower debt costs contributed to the improvement that led to a higher stock price.   Still, the company has continued to post small but significant losses.

The new revenue deal may coax the company back into the black, but investors do not appear to be bullish. A Morningstar  report sees the company as slightly undervalued.

Meanwhile, early sports betting numbers  are in from the Delaware Lottery.

The winner by several lengths is Delaware Park at $653,277, with Dover Downs at $143,95 and Harrington Raceway at just shy of $78,000.

Delaware was the first out of the gate on sports betting and competition from Maryland, New Jersey, and Pennsylvania will soon be felt. 

As the numbers indicate, sports betting won’t amount to much in terms of revenue, with Delaware Park getting much of the betting action.

Keep in mind that the state’s video lottery (slots)   is a more than $350 million business. In other words, we are talking about nickels and dimes.

Enjoy a (slightly) cooler day. The last newsletter for the work week will be posted tomorrow. – Doug Rainey, publisher.