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Delaware lowers tax rate on casinos' slot and table games revenue

Those businesses have long argued Delaware's tax structure is threatening their ability to stay afloat in the face of growing competition from surrounding states. Delaware has hiked the tax rate on casinos seven times since it legalized slot machines in the mid-1990s. Most notably, the Legislature upped the rate on slot machine revenue to 43 percent in 2009 to help close a state budget gap during the height of the recession. That's nearly double the rate when the industry began. The state also collects nearly 30 percent of all gross revenue generated by table games and another $3 million a year in table game licensing fees. "If you look at what the industry has generated for the state over the years, it's close to $4 billion," said Denis McGlynn, the CEO of Dover Downs. "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," he said. "Our financial situation last year shows that's not the case." Dover Downs, the only publicly traded casino in Delaware, reported losses of more than $1 million in 2017 — a deficit that came after the casino paid $75 million to the state and the Delaware Standardbred Owners Association. "We've overtaxed this industry," said Rep. William Carson, D-Smyrna.

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