A long sought after tax and financial relief for the three casinos located in the state of Delaware has been signed into law, following passage and approval through Senate.

Sponsored by Democratic Senator Brian Bushweller, Governor John Carney added the finishing touches, granting the properties the relief they had been seeking.

Addressing local media outlets Ed Sutor, Dover Downs Hotel & Casino CEO, stated delight at the deal made alongside lawmakers, despite his party not being being fully granted everything requested: “There was compromise, and we compromised and this is what would make it through the House and get back to the Senate.”

Approved with a 17-3 majority, the bill is to adjust the state’s lottery revenue sharing model, with the following points highlighted as part of the new structure:

  • Reduction of the State’s share of gross slot machine revenues from 43.5% to 41.5%, or 42.5% to 40.5%, as applicable, with additional reductions of 2% possible for each video lottery agent starting with the fiscal year beginning July 1, 2019, based on qualified capital expenditures reaching 3% of video lottery net proceeds.
  • Reduction of the State’s share of gross table game revenues from 29.4% to 15.5%.
  • Suspension of the table game license fee due June 1, 2019, and continuation of the suspension in subsequent fiscal years, if each agent increases expenditures on marketing, wages, and benefits by its pro rata share of the license fee.
  • Increase of purses for horsemen by 0.6%, phased-in over two years.

The casinos within Delaware current employ 4,000 individuals, and have argued businesses would’ve struggled to stay afloat without this move, with Sutor adding that Dover Downs is to do its part to drive more gaming business to benefit the state, the horsemen and the tracks.

As part of the new law projected revenue losses are positioned at $11.4m for the upcoming fiscal year, and $16.8m in the two thereafter.