Dover Downs, Delaware’s only publicly traded casino, was put on notice by the New York Stock Exchange last week, after the average closing price of its common shares had fallen below $1 for 30 consecutive days. Under NYSE rules, the company’s shares must trade above $1 to be eligible for listing on the exchange.
The casino now has six months to bring its share price back up or face delisting. In the meantime, its shares, listed under the symbol DEE, will be marked with a “.BC” suffix to indicate the company’ non-compliance with exchange rules.
Dover Downs, like other Delaware casinos, has struggled mightily as new competition has appeared in the mid-Atlantic region, particularly a the Maryland casino industry has expanded. The casino has been unable to secure any tax relief from state lawmakers, which have consistently rejected appeals for a break on revenue taxes and fees.
The casino said in a statement last week that it will regain compliant standing if its shares have an average closing price of above $1.00 over a 30-day trading period that ends on the last trading day of the month.
On an earnings call, Dover Downs CEO Denis McGlynn blamed the company’s woes on the onerous slot revenue taxes and fees imposed by the state. “In nine months this year, the company has paid out $56.4 million to the state and the horsemen while recording a net loss of $289,000,” McGlynn said. “That the state’s gaming revenue sharing formula is unsustainable should be apparent to everyone.”
