Delaware State Senate Democratic Caucus
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Senate Newsroom

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Statement – April 26, 2018
Delaware Senate Majority Caucus

For immediate release
Contact: Mat Marshall, (302) 577-8897 or (302) 236-7438
Dylan McDowell, (302) 577-5315 or (302) 744-4180

Casino relief bill clears Senate

DOVER – Legislation passed by the state Senate Thursday would deliver a significant reduction in Delaware’s take from gaming revenues in Delaware’s three racinos – including Kent County’s second-largest private employer, Dover Downs.

Senate Substitute 1 for Senate Bill 144 was released from the Senate Finance Committee on Wednesday following lengthy negotiations between legislators, the executive branch, and employers from the casino industry. The Senate passed the legislation 17-3 this afternoon.

Prime sponsor Sen. Brian Bushweller, D-Dover, hailed the legislation as a shot in the arm for Delaware’s economy.

“For twelve years, my highest legislative prioritiy has been restructuring the financial relationship between Delaware and our casino industry,” said Sen. Bushweller, who announced last year that he will retire at the end of 2018. “That relationship has been out of whack for years, to the peril of more than 4,000 jobs. It’s immensely gratifying to me that we’ve reached this milestone, and not a moment too soon: State government has treated the casino industry like a cash cow for decades, and that cow has been milked nearly dry. We still have to get the bill through the House, but this is a great day for the racinos and for all of their employees.”

Industry leaders also applauded the legislation as a sorely needed rebalancing of the State’s unique relationship with casinos.

“This legislation will allow Dover Downs to improve our property and continue to maintain our great workforce,” said Denis McGlynn, President and CEO of Dover Downs. “Although we had requested greater relief, we appreciate the spirit of everyone working together to reach this compromise. We especially appreciate the reinvigoration of our partnership with the State, and look forward to passage in the House and Senate, and signature by Governor Carney.”

Delaware’s casino industry has faced growing economic headwinds in recent years, including competition from neighboring states and increasing costs of doing business. While Delaware’s casinos remain operationally profitable, they are subject to an outdated revenue sharing formula, in addition to normal taxes and fees that apply to other businesses.

Those additional costs have undermined casinos’ ability to stay in the black: Dover Downs alone, which directly employs roughly 1,400 people, reported a net loss of nearly $1 million in 2017, despite earning $147 million in gaming revenue and $74 in net operating profit in the same period. If signed into law, SS for SB 144 would:
  •  Reduce the State’s share of gross table game revenues from 29.4 percent to 15.5 perecent
  • Suspend the table game license fee due in June 2019
  • Phase in over two years a 0.6 percent increase in purses for horsemen
  • Reduce the State’s share of gross slot machine revenues by two percentage points
  • Remove the prohibition against video lottery agents operating on Christmas and Easter

The bill also includes a framework for some provisions, including the table game license suspension, to be extended in subsequent fiscal years if agents meet certain requirements.

SS 1 for SB 144 now goes to the House for consideration. 
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  • Press Contacts
​​
Scott Goss
Communications Director

(302) 744-4180
scott.goss@delaware.gov
​
Dylan McDowell
Communications Assistant
(302) 744-4282
dylan.mcdowell@delaware.gov
 Delaware State Senate Democratic Caucus, 2020.
  • Home
  • About Us
    • Our Senators >
      • Sarah McBride
      • Darius Brown
      • Elizabeth "Tizzy" Lockman
      • Laura Sturgeon
      • Kyle Evans Gay
      • Marie Pinkney
      • David P. Sokola, President Pro Tempore
      • Jack Walsh
      • Stephanie L. Hansen
      • Bryan Townsend, Majority Leader
      • Nicole Poore
      • Spiros Mantzavinos
      • Bruce C. Ennis
      • Trey Paradee
    • District Maps
    • Legislative Background
    • Contact the Senate
    • Helpful Links
    • Disclaimer
  • Bill Tracking & Information
  • Senate Committees
    • Agriculture
    • Banking, Business & Insurance
    • Capital Improvement
    • Corrections & Public Safety
    • Education
    • Elections & Government Affairs
    • Environmental, Natural Resources & Energy
    • Executive
    • Finance
    • Health & Social Services
    • Judicial
    • Labor
    • Legislative Council
    • Rules & Ethics
    • Sunset
    • Transportation
    • Veterans Affairs
  • Senate News
    • 2022
    • 2021
    • 2020
    • 2019
    • 2018
    • 2017
    • 2016
    • 2015
    • 2014
  • COVID-19 Resources
  • State of the State of Corrections - 2023