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Casino relief cut in half in pending Schwartzkopf amendment
Tracks could get $10 million in tax, fee breaks
June 15, 2018
Speaker of the House Rep. Pete Schwartzkopf, D-Rehoboth, has introduced an amendment that provide casino tax relief, but by half of what was originally proposed. FILE PHOTO
An amendment introduced June 14 allows casinos to keep more gambling revenue, but not as much as originally proposed.
Speaker of the House Rep. Pete Schwartzkopf, D-Rehoboth, has been critical of a senate bill passed in April that would have provided $20 million in tax and fee breaks to Delaware’s three racinos. Schwartzkopf’s amendment cuts total track relief in half to $10 million.
“I have yet to hear that Delaware’s casinos will go under without a $20 million bailout,” Schwartkopf said. “Surrendering that much money to three private institutions means there would be less money for various programs benefiting seniors, students and people with disabilities, as well as adequately supporting correctional officers, probation and parole officers and other state workers.”
The amendment cuts the state’s share of gross table game revenues from the current rate of about 29 percent to 15 percent, and also eliminates table game licensing fees. Racetrack officials have expressed concern over the amount of money the state takes from gambling revenue. They say about 60 percent is kept from slot machine and table game revenue to fund horse racing purses and boost the state’s general fund. With full-scale gambling recently opened at Delaware’s three racetracks, officials anticipate a 2 percent increase in revenue.
Schwartzkopf said he balanced his concern over losing state revenue with the fact that Delaware’s racinos employ thousands of people.
“This amendment would cut casino relief in half, but still make a long-term, structural change to our agreement with them, which will allow them to be profitable and make investments in their operations,” he said. “With this structural change and the addition of sports betting, which should attract more patrons and provide even more revenue for the casinos, there would be no reason for them to seek additional relief for years to come.”
