It was announced that the state of Delaware is likely to have its gambling sector diversified. Currently, there are three casino venues on the territory of the state but their financial performance is failing to meet officials’ expectations.
In order to remedy the situation, Delaware legislators proposed the idea of diversifying the gambling segment by giving the green light to the establishment of a few more casino properties.
Details about the bill, aimed at expanding the gambling sector are still reviewed but according to the preliminary information, Delaware officials would grant three casino licenses provided that developers are willing to invest at least $10 million in each property.
As for the existing casinos – Delaware Park, Harrington and Dover Downs, they have been befallen by serious financial obstacles. The revenue has decreased by almost 50% over the last seven years and casino executives kept warning that the unbearable taxes and the intensified competition from the neighboring states would bring the state casino industry to a dead end.
Market analysts say that casino executives have a point and urgent measures need to be taken. Pennsylvania and Maryland are rapidly expanding their gambling segments and fewer players travel to Delaware to roll the dice. The population of the state is approximately 1 million, which, therefore, makes it difficult for the three casino venues to compensate for their losses.
In order to remedy the situation, Delaware lawmakers have been gradually lowering the the taxes casinos are obliged to pay over the last couple of years. However, according to the reports released losses are still really high.
The state Lottery and Gaming Study Commission took further actions with the aim of providing effective solutions for the struggling casino sector.
As a result, a plan for lowering the table game tax rate was proposed but it met fierce opposition as if the bill passes, the state would lose a considerable amount of money.
The idea for the expansion of the casino sector has been brought to the agenda in January. Delaware authorities proposed casinos to be established in Sussex and New Castle. The tax rates were also to be reviewed and eventually be lowered.
Expectedly, the proposal attracted a lot of opponents who are convinced that the establishment of more casinos would not be helpful as far as the casino sector revival is concerned. On the contrary – the existing casinos are likely to be cannibalized by the new ones, not to mention the fact that the region is already saturated with gambling options.
Yet, the plan for expansion is progressing and once all details are figured out, it will be submitted for approval but people with knowledge on the matter doubt that any serious actions are to be taken before June.
