From USA Today
Struggling to stay afloat, Delaware’s embattled gambling industry has pushed a simple message at state lawmakers here: Help us, or workers will be laid off.
But the reality is much more complicated and troubling for Delaware’s casinos. Gaming revenue in Delaware fell sharply in 2012. The first half of 2013 has been even worse.
And darker days could lie ahead for the state’s three casinos in 2014 and beyond as competition from other states intensifies. Some degree of layoffs could be inevitable in the near term, no matter what action legislators decide to take.
Casino operators have asked for a reduction in slot machine taxes from 43.5% to 37% and, so far, have been rebuffed. Earlier this week, Delaware Gov. Jack Markell instead offered a one-time $8 million payment split between the three.
Based on a review of casino finances and interviews with multiple gaming-industry researchers, the future of gambling revenue in Delaware appears bleak.
“This is applying a Band-Aid to a bullet-shot wound,” said Jay Masurekar, an investment banker who tracks the gaming industry for KeyBanc Capital Markets.
Masurekar’s comments echoed those of several researchers and investment analysts who study the casino business.
