The Delaware land-based casino sector has been struck hard by increased competition from brand new markets in neighboring states, as the more recent and shinier casinos of Pennsylvania and Maryland outperform its three struggling, and highly taxed, racinos.
Dover Downs is Delaware’s biggest and only publicly traded racino, but high taxes that are domestic increased competition over the state line means hard times for the property plus the state’s two other racinos.
The sector, which comprises Harrington Raceway, Dover Downs, and Delaware Park, peaked in 2006, the Pennsylvania began issuing its first casino licenses, when slot revenues hit more than $650 million year. By 2016, slots and table revenues combined had plunged to $398 million.
Meanwhile, outfall from the new MGM nationwide Harbor, which launched in Maryland late last year, stands poised to be the final nail in the coffin. That property caused other casinos in Maryland and West Virginia to ramp up their own advertising drives, drawing even more customers away from Delaware’s ailing properties.
The three racinos cannot compete simply because they spend higher state taxes than their counterparts across the edge, and they are begging legislators for help.
Taxed From the Market
This week, the Delaware’s Video Lottery Advisory Council (VLAC) met to talk about the status of Diamond State’s three casinos. The council i Continue reading Delaware Brick-and-Mortar Casino Sector Advisory Board Holds State’s Fate, While Maintaining Cards Close