Delaware Casinos Set To Receive Huge Tax Break In New Bill
Delaware's three casinos are set to get a nice gift from the state government as local lawmakers are pushing for a bill that will give these casinos a large tax break estimated to be around $16.8 million.
Delaware's State House of Representatives just passed a bill that would finally give Delaware casinos the tax relief that they have been clamoring for. The casinos have been asking for this tax relief for a decade now and they are finally on the verge of getting it.
The tax break will give the three casinos a reduction of one percent on slot machine taxes and will see the tax rate on table games cut by half. The House voted 35-4 in favour of the bill and this will result in a tax break that totals $16.8 million.
The tax break will give casinos a bit of breathing room and ensure that they would be able to have a bit of a cushion in case something goes wrong. The three casinos collectively employ around 3,000 people in the state and have been complaining for a long time that the current tax regime imposed on them by the state forces them to operate on razor-thin margins and they are always threatened with possible closure due to diminishing profits.
Casinos Happy To Finally See Leniency In Tax Laws
The drop in taxes is a good thing since the state has increased the tax rate on casinos seven times since they started operation in the 1990’s. The rise in taxes was a move to help boost the state budget. The tax increases over the years have been harsh on casino operators.
One example of this was the tax increase imposed in 2008 which hit slot machines with a 43 percent tax. This was done to help with a budget shortfall in the middle of the recession. Additionally, table games are taxed at 30 percent and casinos have to pay an annual $3 million in licensing fees.
In a statement, Denis McGlynn, the CEO of Dover Downs said
If you look at what the industry has generated for the state over the years, it's close to $4 billion. 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. Our financial situation last year shows that's not the case.