State Rep. Tim Dukes (R-Laurel) defended the General Assembly’s move to pass a $9.9 million aid package for Delaware’s casino industry in this week’s GOP message.
“A lot of people have asked ‘Why should the state help the casinos?’," said Dukes. "The answer is short: because it makes sense."
Dukes says the casino industry’s importance as a job creator and economic engine in the state justify the aid package, which passed the House in the wee hours of Tuesday morning after a multi-hour caucus session.
Lawmakers passed on an amendment that would have tied the aid to a requirement that the companies that operate the state’s three casinos not lay off a percentage of their workforces.
Dukes contends that the aid package is not a bailout, but instead 5 percent in tax relief considering the state siphons off about 43 percent of net gaming revenue.
Full text of Rep. Tim Dukes weekly message
Earlier this year, I served on a task force looking at ways to maintain the viability of Harrington Raceway, Dover Downs and Delaware Park.
The three casinos have struggled in the face of new competition from Maryland and Pennsylvania.
When Delaware’s casinos opened in 1996, they competed with 12 others in the region. There are now 23 competitors, with two more soon expected to open in the Baltimore-metro area.
That competition has siphoned-off Delaware’s gaming revenue.
Looking at slot machine proceeds alone, revenue peaked in Fiscal Year 2007. By F-Y 2013, it had fallen by more than 45-percent.
A lot of people have asked: “Why should the state should help the casinos?”
The short answer is: “Because it makes sense.”
The state takes 43-and-a-half percent of net gaming revenues, plus added fees for gaming licenses, and additional business taxes.
Even though the state’s annual share of gaming revenue has dropped steadily in recent years, it still accounts for more than 200-million-dollars.
That revenue takes the place of money that would otherwise be paid by Delaware residents and businesses.
Jobs remain a huge issue in our state and five thousand Delawareans are either employed directly by the casinos or have jobs tied to these operations.
What the General Assembly has done is not a casino “bail out”, but rather tax relief of about five percent.
This modest reduction not only serves to protect the livelihoods of 5,000 Delaware families, it also ensures the continued flow of more than $200 million dollars that pays for services benefiting all Delawareans.