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Tuesday, July 1, 2014

Delaware proposes $10M taxpayer-funded bailout to save casino jobs




Leg Hall main

(Photo: GARY EMEIGH/THE NEWS JOURNAL)

Casino owners have warned of layoffs and a dip

in revenue to the state should the measures fail


Casino bill, amendment head to House floor

Jon Offredo, The News Journal6:02 p.m. EDT June 30, 2014


A bill giving financial relief for Delaware's casinos is heading to the House floor for a full vote on the last day of the General Assembly, but there's a catch.
General Assembly: Casino bill
A proposed amendment to a $9.9 million casino relief package filed Monday afternoon requires the state's three casinos to give back any state money they receive if they lay off more than 3 percent of their workforce.
The amendment, supported by House Democratic leadership, is a last-minute addition to the mix and could complicate matters if the House approves it because it would require another Senate vote. The bailout package is one of the last big-ticket items left in this year's legislative session and is expected to be heard at some point during Monday night's marathon session.
The amendment was not filed to kill the bill, but to allay fears that the casinos would lay off people even if they got the money, said Rep. Dennis E. Williams, a Talleyville Democrat, and sponsor of the amendment. Casino owners have said that no money would result in layoffs and a loss in service and revenue to the state. But it's not certain that job loss would be prevented if they received a bailout.
"I'm still not in favor of the bailout, but I think it's important that if it does pass that there are guarantees that those jobs will be saved," Williams said. "If that's why they are saying they need the money, then let's make sure they retain those jobs."
The package, whittled down from an original proposition of $9.9 million in the first year and $20.1 million in each subsequent year, was released from the House Gaming and Parimutuel Committee with a 6-4 vote on Monday.
Bill Rickman, Delaware Park owner, said the casino wouldn't lay anyone off. Delaware Park employs just over 1,000 people.
"If we had problems, we gave people incentives to retire earlier," he said. "We don't lay people off."
Lawmakers have debated the legislation, with some arguing that the state money could be used for other needs, and others saying it is a stabilizing measure meant to keep the state's partners in the casino industry afloat.​
Contact Jon Offredo at (302) 678-4271 or at joffredo@delawareonline.com or on Twitter @jonoffredo.

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