Delaware lawmakers were concerned about declining revenues at the state’s three casinos, even before approving a full-menu of online gambling, and ordered a complete review of gambling in the Commonwealth.
Following last week’s financial report from Dover Downs Gaming and Entertainment Inc., the legislators involved in the scrutiny became even more concerned.
The company reported net earnings of $13,000 for the year 2013. This was a far cry from the $4.8 million the company reported in the previous year.
Dover Downs officials attributed the decline in large part to intense competition from casinos in neighboring states and a burdensome tax structure. Actually, when the casinos were flourishing, a few years back, lawmakers decided to take advantage of their success by dramatically increasing taxes on gambling establishments.
Then, competition from nearby states expanded to the point where the operating casinos are struggling to make a profit.
The state panel created to find ways to keep Delaware’s three casinos competitive is expected to submit its report by the end of the month.
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