Good afternoon,
Delaware is losing a publicly traded company when Dover Downs Gaming and Entertainment becomes part of the Rhode Island-based Twin River group of gambling venues.
The merger could be good news for Dover Downs, which put the brakes on upgrades in attempting to eke out a profit. Dover Downs deserves credit for doing a good job of maintaining the property under the circumstances.
Dover got a little breathing room last year from a modest reduction in the state’s excessive “piece of the action” and the addition of sports betting.
The deeper pockets of Twin River should allow for upgrades that may have been delayed over the years. Twin Rivers appears to be solidly profitable at this point.
One the minus side, the overall job total at Dover Downs could drop a bit as duplicate corporate jobs are consolidated.
Twin River is betting that the worst is over for Dover Downs. The one-casino company was whipsawed by competition and one of the nation’s highest “takes” on revenue, with the state never ending a “temporary” increase in its revenue take that came during one of our periodic fiscal crises.
Maryland’s gaming system is essentially built out with the addition of the Las Vegas-style MGM casino across the river from Washington, D.C. Philadelphia may see one additional venue.
Going away are Dover Downs’ earnings reports, which provided insights into the state of the gaming industry in Delaware, will go away.
Twin River may mention Dover Downs in its reports, but, more than likely, not in a detailed fashion.
How the state’s other two privately held casinos (Delaware Park and Harrington) are faring remains unclear, since legislators have not insisted on public disclosure of financials in efforts to provide relief to operators.
Enjoy your weekend. This newsletter returns on Monday. – Doug Rainey, chief content officer.
