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Dover Downs Gets Credit Lifeline

Dover Downs Gaming and Entertainment had a $90 million line of credit extended until August while the struggling operator of Dover Downs racino in Delaware looks to refinance its debt.

The owner of Dover Downs racino in Delaware were given an extension until August 15 for a million line of credit that had been set to expire June 17, according to a report filed by Dover Downs Gaming and Entertainment Inc. with the federal Securities and Exchange Commission.

The credit extension will allow the casino, harness track and motor sports facility to keep up interest payments on more than $50 million in debt while the company seeks a deal with creditors to refinance that debt. Dover Downs, which has struggled along with the other two Delaware racinos as competition in Maryland has siphoned off a significant portion of business, had only $13,000 in net income last year while financing that debt.

Dover Downs and the other two racinos, Delaware Park and Harrington Raceway, have appealed to the state for breaks on stifling taxes and fees that are exacerbating its efforts to recover from flat results. Lawmakers have failed so far to find a way to fund a bill that would provide $20 million in annual tax relief.