Delaware Feels the Impending Threat 

By continuing to disregard the growing invasion force mounting against its slot machine business, Delaware may put themselves in a position where their budgetary crisis may snowball beyond their control.  Delaware seems satisfied with a tweak here and a spruce there to their state’s three racinos.  However, to the north, Chester Downs is ramping up to launch its slot machines and race track operations a few miles away from Brandywine Hundred.  By early next year, Pennsylvania will be laden with at least a dozen non-racing gambling venues.  

For no less than the third time this year, Maryland legislator will tackle the issue of slots parlors.  Currently, the possible location for Maryland slots parlors could be Cambridge, Ocean City, and/or Cecil County. 

With all of their neighboring state gearing up for huge slots projects that pose a very real threat of striking a $130 million hole in the state’s future slots revenue, Delaware has hardly made any motions to challenge.  Delaware has fashioned a tri-state progressive game with Rhode Island and West Virginia expected to take off some time this year.  Last week the state presented legislation permitting patron promotions, additional slot machines, and 24-hour gambling.  $130 million is close to 10% of Delaware’s slots income, their latest plans project a paling $11 million income boost. 

The modifications to Delaware’s slots regulations were promoted by Governor Ruth Ann Minner as a response to the growing threat to Delaware gaming.  If that is true, the response hardly seems enough or appropriate.

Both Dover Downs and Delaware Park face the option of a 1,500 slot machine expansion.  Since legislation will require them to pay a fee between $300 and $1,200 for every 500 machines, the expansion will generate new revenue.  Unfortunately, it will be a six month or more process for each venue to under go the proper accommodating expansions, ordering the games, and then finally installing them.  It does not look like expansion is in Harrington Slots’ near future. 

The changes are, however, a nod from the governor’s office that the current state-sanctioned gambling wave is to be taken seriously.  Even big rolling Atlantic City, which has traditionally allowed less established gambling operations to go unchecked, refused to ban smoking from its casinos in direct preparation for Pennsylvania’s coming explosion onto the gambling scene.  An Atlantic City casino executive actually cited Delaware’s application of an indoor smoking law and its increase in slots patrons as an argument against outlawing smoking within their facilities. 

Governor Minner credits her Video Lottery Advisory Council for the recent change to Delware slots regulations.   She has yet to include the recommendation from that very same Council to introduce poker, blackjack, and other classic casino table games.  Delaware would solidify a very unique identity in the Mid-Atlantic United States if they were to include these changes with federally authorized sports betting. 

Though he has the final say in the matter, it is unlikely that Finance Secretary Richard Cordrey will deny the recent gambling hours and promotion projects introduced in Delaware.  What, unfortunately for Delaware, seem more likely is that Governor Minner will back off on expanding gambling to a venue in Wilmington and introducing table games.  These decisions could put major hurt on Delaware.

Unless Delaware make decisive moves very soon, watch for mega budget cuts in 2006.

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