Delaware casinos are gearing up for what they say they hope is the final year of state-financed fixes to their declining revenues.
The General Assembly gave the state’s three gambling venues $9.9 million July 1st, part of which came what remained of the eight million dollars set aside for them in 2013.
“We’re very pro-recycling,” said Ed Sutor, President and CEO of Dover Downs.
When state lawmakers approved the deal, there was a provision to reconvene the Lottery and Gaming Study Commission for another year.
Sutor says he’s hoping they revisit altering the table game revenue structure to help mitigate expected losses from across the Chesapeake Bay. Horseshoe Casino in Baltimore is expected to open in Baltimore Aug. 26, and Sutor says it is looking to poach the table game market.
He says he also wants the group to look at creating new tax credits for capital improvements.
“We put up all the money and the state gets the majority of the revenue from it. So, in order for us to continue to do big things, other states have given credit to casinos for adding hotel rooms,” said Sutor.
Food and beverage sales, along with hospitality services make up the only positive revenue stream at Dover Downs for the first two quarters this year.
When asked if he thought it would be more difficult to get more relief legislation passed again next year, Dover Downs President and CEO Ed Sutor said the most recent vote showed great support from legislators.
“It wasn’t close. It was overwhelmingly positive for our industry,” said Sutor. “Our position is that the public still doesn’t get it.”
He says it’s a revenue sharing problem and that the state is getting too much for the casinos to remain solvent.
Some state lawmakers have pushed back, referring to the most recent legislation as the “second annual, one time only bailout.” Others have lobbied for allowing the casinos to go bankrupt and sell their operating license to other companies, but neither has gained much traction.
The Lottery and Gaming Study Commission will begin meeting by mid-September.