Earlier in 2014, Gov. Markell’s administration released a plan that was intended to boost the revenues of Delaware-based casinos. It allowed gaming facilities to open independent slot venues at different locations across the state.
Local Financial Secretary Tom Cook had talks with representatives of Dover Downs, Delaware Park, and Harrington Raceway and Casino – the three casino operators in the state. Here it is important to note that each Delaware gaming facility is permitted to own no more than 4,000 slot machines. That is, casinos would have been able to launch independent parlors, so as to fully take advantage of the allowed number.
Dover casino, for instance, has a total 2,400 machines in operation. Thus, it would have been allowed to place 1,600 more on any location within the territory of the state.
Dover Downs’ managing director Denis McGlynn stated that they considered the idea, but it was decided that this would only bring additional expenses, related to the construction of the new parlors. Executives of the other two casinos also dismissed the plan.
With its rejection, local authorities are now facing the challenge of finding a way to enhance the state’s three casino facilities.
It was reported that last year, $215 million were generated from casino games and lottery.
Managers of the three casinos have averted their attention to a quite different direction than local authorities. They keep on asking for any tax breaks or some other type of financial relief, so as to be able to deal with the increasing number of competitors from neighboring states. For instance, $283 million were invested in Dover Downs’ renovation for the past 20 years, so as for visitors from other states to be allured.
McGlynn stated that there was no understanding between authorities and casino executives. He strongly disapproved of the idea for casinos to build new slot parlors and thus, lose more money.
It appears that authorities attempted to avoid the permission of tax concessions for casinos. If these are implemented, the state will need to burden itself with some of the expenses of its gaming venues. What is more, this will imminently lead to a drop in turnover, generated to Delaware’s overall fund.
Mr. Cook commented on the casino operators’ refusal to consider the plan. He claimed that the state has always been “forward thinking” when it came to gambling activities within its territory. He pointed as an example the authorization of online gambling and sports betting.
According to Bill Rickman, current owner of Delaware Park, the market in the state was way too small and it had enough venues already. He said that authorities should be careful when encouraging for new operations to be started, for Delaware might not be able to sustain much more, until it gets fully saturated.
Slot machines were introduced to the state back in 1994. Their main purpose was to boost local horse racing. That is, 10% of slot turnover goes to the afore-mentioned industry.
