Blotter: Delaware commission rejects gambling expansion study findings

Delaware's Sports and Video Lottery Commission voted five to four to reject the "de facto finding" of a study on gambling expansion in the state carried out by a gaming consulting firm. The study, conducted by TMG Consultants, a gambling industry specialty group, concluded that the state would enjoy increased revenues and a potential net gain in jobs if they allowed for the addition of two new casinos. The state currently has three "racino" facilities that combine horse racing and slot machines.

Despite the group's findings, the commission voted to add a footnote that rejected the idea. Commission members voting against the findings said that the addition of new facilities could damage the precarious financial condition of the state's horse racing tracks by diluting the market for gambling outlets. The members also expressed concern about the accompanying job losses that would come with the potential closing of the tracks.

The study also provided commission members with data on how the addition of table games, such as craps, roulette and blackjack, could help increase tax revenue for the state. Although the study data showed that revenue generated from table games would benefit the state, representatives from TMG said that the issue merited further study before they could reach a definitive conclusion.

Although the commission rejected the study's findings, they did approve sending the study data to the state legislature for their review and analysis. Members of the Delaware General Assembly stated that they would not consider expanding gambling within the state if it stood to harm the existing racetracks, even if the additional casinos represented both a net gain in jobs and increased revenue for the state. According to the study, the construction of two new video lottery casinos would reduce the customer base at the horse tracks, but the impact would not be enough to force them to shut their doors.

The next step under consideration by the commission is to review the issue of allowing sports betting in outlets beyond the designated casinos. The commission's chairman said that he expects to see the report on that issue by 1 April.

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