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September 30, 2020

Site paints grim picture of what could happen if financial relief is not passed by state lawmakers

Delaware casinos on the offensive with new website

Delaware casinos on the offensive with new website
(US).- A slick website published recently and registered to Dover Downs Hotel and Casino promotes the state's casino industry and advocates for more financial relief from state lawmakers. It's the latest attempt to urge lawmakers to lower their taxes in t
United States | 02/17/2015

(US).- A slick website published recently and registered to Dover Downs Hotel and Casino promotes the state's casino industry and advocates for more financial relief from state lawmakers. It's the latest attempt to urge lawmakers to lower their taxes in the face of falling slot revenue and greater out-of-state competition.

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he site, registered in October last year by the casino's marketing department, provides employee and customer testimonials and uses infographics to explain how the state, casinos and horse racing industry share gambling revenue.

Late last month Dover Downs reported a nearly 2 percent drop in fourth-quarter revenue and reported a net loss of $706,000 in 2014, after earning a meager $13,000 in net earnings during the year prior. It was the first year-end net loss the company reported since it added slot machines in 1996.

This year's recommendation could cost the state $15.8 million in the first year via several components, including the elimination of the fee to operate table games, a cut to the state's share of revenue from table games and the state picking up more of the cost to maintain and operate slot machines.

Year two of the proposal would provide a 5 percent tax credit, based on yearly slot revenues, for both marketing and capital expenses. One casino executive estimated that to be as much as $30 million a year.

The recommendations, which could be put into legislation, is opposed by Gov. Jack Markell and several powerful lawmakers. Alternatives, including offering satellite slot locations, could be considered.

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