Lawmakers in Delaware are about to file a bill that would provide more than million per year in tax and fee relief to the state’s beleaguered casinos. The legislation, based on recommendations of the Delaware Lottery and Gaming Study Commission, would change the way gaming revenues are divided between the state, the horse industry and the three racinos, Delaware Park, Dover Downs and Harrington Raceway.
State Finance Secretary Tom Cook, who chaired the study commission, told an industry panel last week that the bill’s introduction is imminent.
It remains to be seen whether the legislature will give importance to bailing out the casino industry, which has been slammed by regional competition, its leaders claiming layoffs and other cost-cutting are imminent without relief from high gaming revenue taxes and fees. The state is facing a general budget crunch, with Governor Jack Markell’s administration calling for higher taxes to shore up deficits.
Cook, however, told Delaware’s NPR Radio station that the importance of casino revenues to the state means lawmakers are likely to give the measure serious consideration.
“Every year there are lot of tough decisions, and you have to set priorities and put them in the proper order,” Cook said. “I think the issue of the casino industry in the state of Delaware is an important issue, and I think they will give it its due diligence. The casino industry is an important part of Delaware’s economy, not just from the revenue generated but from the jobs it entails as well. So, I think the legislature and the administration will work hard to make sure that we stay competitive with surrounding states.”
The commission’s recommendations include a proposal that the state split 75 percent of slot machine vendor costs with the casinos, rather than casinos paying the costs from their share of gaming revenues. Other recommendations include eliminating the $3 million annual fee for table games, and reducing the state’s share of table game revenue from 29.4 percent to 15 percent.
In an interview with the Associated Press, Dover Downs CEO Ed Sutor said his casino, which reported a quarterly loss of $1 million last week with revenues down more than 12 percent from last year, has $47 million in debt that becomes callable on June 17 unless it can renegotiate its loan terms. “We believe that if we do get that bill as proposed by the commission, we should be in a much better position with our bank to get our deal renewed,” he said.
