Delaware Casinos Finally Earn Some Much Needed Tax Relief
Delaware Casinos Finally Earn Some Much Needed Tax Relief. States with real money casinos rely heavily on the tax revenue they generate to fill in some big holes in the government’s operating budget. Sometimes that reliance is too heavy in form of very high tax rates. The goal of any land-based real money casino is to make some real money, but if revenue projections fail to meet expectations, they can quickly find themselves operating in the red.
In what should be considered a big, but a hard-fought victory for the casino industry in Delaware, the state’s government is finally reducing some of that burden in the form of tax relief. Delaware’s House passed a bill that basically provides some form of tax relief that Delaware’s three casinos had seeking for the past 10 years.
How Do Delaware Casinos Earn Tax Relief?
State Senator Brian Bushweller has been championing the Delaware casinos’ cause as a Democrat representing Dover. He was quoted as saying after the measure was passed, “They can breath a little easier tonight knowing that the ball is back in their court. They’ve got a good future.” The bill was passed last Thursday night.
The 35-4 vote signaled that a strong majority of the lawmakers were in favor of helping the casino industry better compete in light all increased real money gambling opportunities in neighboring states. The one percent reduction in tax on slot machine revenues is expected to equate to a reduction of $16.8 million. The bill also makes a significant cut in the tax collected on casino table games.
The Senator also added that these reductions should provide significant breathing room for the state’s casino industry, which provides almost 3,000 jobs. Most of these jobs are in Kent County at Dover Downs Hotel and Casino as well as Harrington Casino and Raceway.
This report notes that since the mid-1990’s when Delaware legalized real-money gambling in the form of slot machines, it has also raised taxes seven different times. One of the biggest increases was at the height of the recession in 2009 when the rate was jacked up to 43 percent in an effort to close gaps in the state budget. That was nearly double the rate from the initial state tax on gaming.
Does The Delaware Casinos Tax Relief Help With Online Gambling?
It was also noted that the state collects close to 30 percent of the casino revenue generated by table games on top of the $3 million it collects in table game licensing fees. The CEO of Dover Downs is Denis McGlynn and he was quoted as saying, “If you look at what the industry as generated for the state over the years, it’s close to $4 billion.” He added, “We are in a partnership with the state, along with the horse racing industry, and I think this legislation shows lawmakers are grasping that we need all three partners to be healthy. Our financial situation last year shows that’s not the case.” Dover Downs is the only publicly traded Delaware casino and it reported a loss in excess of $1 million in 2017.
Delaware was one of the first states to legalize online casino gambling. Now, you may be able to bet on sports from Delaware. However, before you do any activities you should check with your attorney. Several years ago, New Jersey, Delaware, and Nevada said yes to legalizing online casinos. As a result, the New Jersey licensed gambling market took off to the point where if you live in the tri-state area and you’re on your TV, you are bound to see a sportsbook or online casino commercial.
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While the state of New Jersey appears to have more legal gambling structure, The Dover Downs looks like it has a good online casino. We have never played at their online casino but it looks pretty good. Also, it appears that Delaware residents can play online casino games for real money at New Jersey casino apps.
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