Delaware governor seeks to protect casinos

WILMINGTON - Gov. Jack Markell's focus on expanding gambling in Delaware with new casinos has shifted to protecting the existing casinos.

A year ago, Markell and a handful of legislators were still placing bets that building new casinos would create jobs in Delaware. Now, they are growing worried about existing jobs at the three racetrack casinos, which are struggling to attract out-of-state gamblers who can now play slot machines closer to home.

Markell, who is up for reelection this year, has dropped his push to add casinos in New Castle and Sussex Counties.

The Democratic governor's tone has changed as after-tax revenue continues to slide at the state's three casinos amid increasing competition from Maryland and Pennsylvania.

As Markell prepares for his fourth State of the State address on Thursday, Delaware's casino operators are finding some sympathetic ears in the legislature, while the prospects of authorizing new casinos appear to be all but dead for now.

The operators of Delaware Park, Dover Downs, and Harrington Raceway have been lobbying for relief from $10 million in licensing fees or a cut in the state's casino tax rate.

Taxes and licensing fees collected from casinos and the state lottery are Delaware's fourth-largest revenue source.

Slots revenue has fallen every year since the first new competitor - Harrah's casino in Chester - opened in 2007, according to data from the Video Lottery Advisory Council, a state panel made up of casino executives.

Since then, five new casinos have opened in Maryland and Southeastern Pennsylvania.

At the end of the third quarter of 2011, slots revenue at Delaware casinos was down more than 13 percent from 2010.