Atlantic City Casinos Push New Jersey Governor Chris Christie to Sign Financial Assistance Bills

SEPTEMBER 03, 2015 BY KEVIN HORRIDGE

Atlantic City casinos are still awaiting approval for a tax break legislation package from New Jersey Governor Chris Christie, and say further delays could harm the already struggling city. (Image: Nyier Abdou/The Star-Ledger)

Read more: http://www.casino.org/news/atlantic-city-casinos-push-christie-to-sign-aid-measure#ixzz3kp6DPkSJ

Atlantic City casinos are pressuring Governor Chris Christie to step off the political campaign trail for a minute and hike back to Trenton to sign a package of rescue bills. The measures were approved by both the Assembly and State Senate in June, and have been since sitting on his desk for final approval ever since.

The Casino Association of New Jersey (CANJ) says the bills, particularly the Payment In Lieu Of Taxes (PILOT) program, is critical for the city as a whole.

“As the clock continues to tick while we wait for Governor Christie to sign the Atlantic City Revitalization legislation, the price of inaction continues to grow and the fate of Atlantic City and the region hang in the balance,” CANJ said in its press release.

Christie’s Cold Feet

Atlantic City can still claim the streets of the famous Parker Brothers board game, but its monopoly on the gambling industry has long disappeared. Once considered the East Coast gambling mecca, but now in varying states of disrepair and financial anguish, the resort gaming town thought it had Christie’s support for a recovery measure back in March when state lawmakers were debating the issue.

“The governor looks forward to … the legislation proposed by the Senate President to bring real, long lasting fiscal stability to Atlantic City,” Kevin Roberts, Christie’s spokesman, said in March. “The governor urges the legislature to put just such legislation on his desk for signature.”

The bills the legislature agreed upon is a five-part package that is centered around the PILOT program, allowing the eight remaining casinos to avoid fluctuating tax rates in favor of a stabilized payment system. The other four mandates would create a state education fund for the city, guarantee health insurance, and retirement benefits for casino workers, divert monies to redevelopment projects, and eliminate the Atlantic City Alliance and reinvest its $30 million annual budget.

“Every day that the proposed legislation is not adopted reduces the amount of revenue that the city may receive under the funding and jeopardizes the stability sought to be achieved by the legislation package, threatening non-casino Atlantic City businesses and residents and taxpayers across the county,” CANJ said.

Community Chest

Similar to the federal government’s bailout of the US subprime mortgage crisis in 2008, the bills aren’t popular among all parties in New Jersey, and letting the casinos off the hook for their tax responsibilities is certainly seen as a bailout.

But CANJ claims without these measures, more venues will struggle to pay on their now over-assessed properties.

CANJ also says that Christie’s holdup will cost Atlantic City $50 million as taxes from casinos go to Trenton instead of being reinvested locally. “That means the city would need to replace that revenue by other sources, presumably the property taxpayers of Atlantic City,” CANJ stated.

It appears the governor is backtracking from the deal, as giving casinos a free stack of chips could come back to haunt him on the 2016 presidential campaign trail. The two-term Republican state leader is trying to make his case for the presidential ticket and appeal to more conservative voters, but that might be difficult considering his approval rating in the Garden State is currently at 37 percent. Nationwide, latest polls show him with the backing of a dismal three percent of likely GOP voters.

That puts Christie well behind another person who abandoned Atlantic City awhile back: Republican front-runner Donald Trump.

Read more: http://www.casino.org/news/atlantic-city-casinos-push-christie-to-sign-aid-measure#ixzz3kp6QJh4A

Wait for the bailouts!

If you read a newspaper this week, you couldn't avoid comments about GAMBLING MARKET SATURATION. .....

Failing casinos? OMG!

The solution? TAXPAYER FUNDED BAILOUTS in various forms!




US gambling market saturated, yet casinos keep on coming

U.S. News & World Report

More casinos are planned soon for Philadelphia, Massachusetts, Rhode Island, Maryland and New York. Hamilton noted that a planned second ...

Despite saturation, casinos keep popping up - Albany Times Union

US gambling market saturated, yet casinos keep on coming - Akron Beacon Journal

Will More Atlantic City Casinos Close? - Philadelphia Magazine (blog)

 

 

Despite US market saturation, casinos still coming

Youngstown Vindicator

Eugene Johnson, of Spectrum Gaming Group, says by the end of this year, there will be 60 casinos in the Northeast. That figure will grow to 65 by ...

 

 

Casinos Nearing Saturation Point

Wheeling Intelligencer

ATLANTIC CITY, N.J. - The casino market in the northeastern United States is saturated, yet that's not stopping some states from approving gambling ...

 

Atlantic City, NJ - US Gambling Market Saturated, Yet Casinos Keep On Coming

Vos Iz Neias

More casinos are planned soon for Philadelphia, Massachusetts, Rhode Island, Maryland and New York. And New Jersey is considering allowing a ...

5 Atlantic City Casinos = 11,000 JOBS

Papers filed to close Trump Taj Mahal casino

Wayne Parry and Randall Chase, AP 11:02 p.m. EST November 14, 2014

 

 

ATLANTIC CITY, N.J. — The owner of the struggling Trump Taj Mahal Casino Resort filed court papers on Friday saying it will close next month, making it the fifth of the city's 12 casinos to shut down this year.

 

In filing a revised reorganization plan in Delaware bankruptcy court, Trump Entertainment Resorts said its board has approved a shutdown of the casino by Dec. 12. It had threatened to close by then if its main union didn't drop its appeal of a court-ordered cost-savings package.

 

The company said the closing will happen because it has not received the state and local tax breaks it sought in a bid to keep the Taj Mahal open. It advised New Jersey's Division of Gaming Enforcement of its intention to wind down operations of the Taj Mahal and to close it on or about Dec. 12.

 

"The debtors have initiated appropriate steps to cease operations at the Taj Mahal consistent with that time frame," Trump Entertainment attorneys wrote.

 

Company officials declined to comment Friday afternoon.

 

With the union appealing a bankruptcy court order terminating its collective bargaining agreement and the company's pension funding obligations and New Jersey officials refusing to grant tax concessions, the Taj Mahal's 3,000 workers will soon join some 8,000 other Atlantic City casino workers who have lost their jobs this year.

 

 

 

 

Mayor Don Guardian said he knows this is a difficult time for all the people who'll be out of work.

 

"I want them to know that the city of Atlantic City did everything they could to help keep the Trump Taj Mahal open," he said. "However, (the company and its officials) still must pay their fair share of taxes, just like our residents do."

 

Trump Entertainment is pursuing a longshot plan to let billionaire investor Carl Icahn exchange $286 million in debt for ownership of the company. He would invest $100 million into it, but only if the company gets $175 million in state and local tax breaks.

 

Bob McDevitt, president of Local 54 of the Unite-HERE casino workers union, faulted Icahn's attempt to acquire the Taj Mahal.

 

"We are all waiting for Mr. Icahn to step up and become part of the solution and stop pointing fingers, threatening and demanding," he said. "For once maybe he could do the right thing instead of trying to bully everyone."

 

Icahn has said the union is accusing him of trying to take advantage of the company's situation even though no one else was willing to invest a dollar in it.

 

Atlantic City has been caught in an eight-year downward spiral caused mainly by the proliferation of casinos in neighboring states.

 

When the first Pennsylvania casino opened in late 2006, Atlantic City's annual casino revenues were $5.2 billion. Last year they were $2.86 billion, and they will be significantly less than that this year.

A panel appointed by Gov. Chris Christie is recommending ways to help the city and its remaining casinos, including tax relief, additional aid and an emergency manager to help tame the city's finances.

 

Meanwhile, Trump Entertainment's committee of unsecured creditors asked U.S. Bankruptcy Judge Kevin Gross in Wilmington, Delaware, to terminate the company's exclusive right as a debtor to file a reorganization plan so the committee could file its own liquidation plan. A hearing on the request for an alternate plan is scheduled for Dec. 4, about a week before the casino is to close.

 

The Trump Taj Mahal is Trump Entertainment's last casino. It used to own two others: It sold the Trump Marina to Texas-based Landry's Inc., which converted it into the Golden Nugget, and it closed the Trump Plaza on Sept. 16.

 

 

AP Business Writer Randall Chase reported from Wilmington, Del.

http://www.usatoday.com/story/money/business/2014/11/14/trump-taj-mahal/19063743/

 

 

 

 

Atlantic City Taj Mahal casino set to close within four weeks

By Alex Dobuzinskis

Fri Nov 14, 2014

 

 

(Reuters) - The planned closure of the Trump Taj Mahal Casino in Atlantic City will occur within four weeks, as it joins four other gambling establishments that have shut their doors this year in the faltering New Jersey resort city, according to court papers filed on Friday.

Trump Entertainment Resorts Inc, which operates the Taj Mahal, filed for bankruptcy in September as it outlined plans to close the casino, which has suffered declining gambling revenue and falling occupancy in its 2,000 rooms, around Nov. 13. The Taj Mahal this year had more than 3,000 workers on its payroll.

That closure plan was delayed after the company won court approval to cut pension and benefits of employees of the establishment modeled after the Taj Mahal monument in India. State and local governments have balked at offering tax concessions.

Attorneys for Trump Entertainment Resorts said in papers filed in federal bankruptcy court on Friday that because the owners of the casino "had not obtained the tax relief and incentives" they had sought, the company's board of directors approved closing it around Dec. 12.

Atlantic City's casinos have lost their appeal and gambling dollars to dozens of rivals in other U.S. states, with gaming revenue nearly half its 2006 peak of $5.2 million.

"I am very sorry to hear that the Trump Taj Mahal has decided to close on Dec. 12," Atlantic City Mayor Don Guardian said in a statement.

"I know this is a very difficult time for all the employees who will be losing their jobs. I want them to know that the city of Atlantic City did everything they could to help keep the Trump Taj Mahal open. However, they still must pay their fair of taxes, just like our residents do," he added.

Four other Atlantic City casinos, including the Trump Plaza which was operated by the owner of the Trump Taj Mahal, have already closed in 2014. The year began with 12 casinos in the city that is the second-largest U.S. gambling destination after Las Vegas.

Donald Trump founded Trump Entertainment but no longer controls the company.

(Reporting by Alex Dobuzinskis in Los Angeles; Editing by Mohammad Zargham)

http://www.reuters.com/article/2014/11/15/us-usa-newjersey-trump-idUSKCN0IZ02H20141115

HAVE YOU ASKED YOURSELF: "WHY?"

Mass Yes-OnThree

HAVE YOU ASKED YOURSELF: "WHY?""

? If casinos are so great for communities, why did Governor Patrick, House Speaker DeLeo, Senate President Murray and Gaming Commission Chairman Crosby all say they would oppose any casino that wanted to locate in their hometowns -- but they have no objection to putting one in yours?

? If casinos are so great for business, why do so many businesses close wherever casinos open?

? If casinos are so great for employment, why do Las Vegas, Atlantic City and Detroit have three of the highest unemployment rates in the country? And why do so many people lose their current jobs once casinos open?

? If casinos are so great for taxpayers, why have taxpayers had to fork over hundreds of millions of dollars to bail out casinos in Delaware, Connecticut, New Jersey, Rhode Island and elsewhere?

Is whatever you believe might be gained from casinos,
worth everything that you will lose?

On November 4th, Vote YES to Repeal the Casino Law
Vote YES on #3
Vote YES to STOP the Casino Mess

WANT TO HELP?
3 Ways You Can:
1) Please share/post these messages widely:https://www.facebook.com/profile.php?id=100005253047911 
2) Volunteer: http://www.repealthecasinodeal.org/how-to-help
3) Donate: http://www.repealthecasinodeal.org/donate

We Can't Win Without YOU!

Find the FULL list of reasons to Vote YES on 3 here:
http://massvoteyeson3.blogspot.com/

http://massvoteyeson3.blogspot.com/…/have-you-asked-yoursel…

Mass. Vote YES on 3: Have you Asked Yourself: "Why?"

MASSVOTEYESON3.BLOGSPOT.COM|BY JOHN EPSTEIN

Day Ten: 18 reasons in 18 days to Vote YES on 3: Bankruptcies, Bailouts and Busts: Casinos are Failing, Not Booming

Please share and post widely.

Bankruptcies, Bailouts and Busts: Casinos are Failing, Not Booming

It's all over the news: casinos are defaulting on their debts and the casino gaming industry, as everyone knew it, is crumbling. Calling it "a worrisome trend", Moody's Investor Services recently revised its outlook for the U.S. gaming industry from "stable" to "negative" citing a "weaker demand . . . and oversupply of casinos". Taxpayer-funded bailouts -- hundreds of millions of dollars so far -- have already been approved by several states in an attempt to prevent bankruptcies, closings or layoffs. As you've seen, that doesn't always work. Keep in mind that these are the same casinos that promised tons of money to the states and municipalities, but are now seeking money from taxpayers in order to stay afloat.

Just recently, the potential buyer for the failing Trump Taj Mahal casino in Atlantic City demanded a $25 million dollar taxpayer bailout. Then he demanded a yearly tax break. Then he demanded that casino employees forfeit their pensions and their health insurance. Are casino owners really the ones we want controlling our economy and our lives here in Massachusetts?

Is whatever you believe might be gained from casinos,

worth everything that you will lose?

On November 4th, Vote YES to Repeal the Casino Law

Vote YES on #3

Vote YES to STOP the Casino Mess

WANT TO HELP?

3 Ways You Can:

1) Please share/post these messages widely: https://www.facebook.com/profile.php?id=100005253047911

2) Volunteer: http://www.repealthecasinodeal.org/how-to-help

3) Donate: http://www.repealthecasinodeal.org/donate

We Can't Win Without YOU!

Find the full list of reasons to Vote YES on 3 here:

http://massvoteyeson3.blogspot.com/

Day 16: 20 winning casino repeal arguments in 20 days

Casinos are already lining up to change the rules.

 

Some casinos have recently petitioned states to reduce their tax burden, negating the primary justification for legalizing casinos in the first place. This June, the CEO of the American Gaming Association stated that "the tax and torture model (of taxing casinos) is unsustainable" as he called for states to reduce taxes on casinos or risk losing jobs. Here in Massachusetts, casinos have already requested changes to the casino law, and they aren't even open for business yet. As long as the casinos hold all the cards (read: money and political influence), their lobbyists will keep pushing for changes that benefit them, at the taxpayers' expense. It's already happening in other states. It will happen here, too.

On November 4th, Vote YES to Repeal the Casino Law

Vote YES on #3

Vote YES to STOP the Casino Mess

Day Twelve: 20 winning casino repeal arguments in 20 days

The Casino Generation is Aging Out:

Young people don't gamble like their parents or grandparents did. Over time, the effect of this demographic change will take a serious toll on casinos. Profits will drop. Tax revenues will decrease. Jobs will be eliminated. It's already happening at casinos everywhere and the effects can be seen in casino failures, cut-backs and bailouts. This is an industry in decline. And taxpayers are being called upon to pay for it.

On November 4th, Vote YES to Repeal the Casino Law

Vote YES on #3

Vote YES to STOP the Casino Mess

Day Ten: 20 winning casino repeal arguments in 20 days

Bankruptcies, Bailouts and Busts: Casinos are Failing, Not Booming

It's all over the news: casinos are defaulting on their debts and the casino gaming industry, as everyone knew it, is crumbling. Calling it "a worrisome trend", Moody's Investor Services recently revised its outlook for the U.S. gaming industry from "stable" to "negative" citing a "weaker demand . . . and oversupply of casinos". Taxpayer-funded bailouts -- hundreds of millions of dollars so far -- have already been approved by several states in an attempt to prevent bankruptcies, closings or layoffs. As you've seen, that doesn't always work. Keep in mind that these are the same casinos that promised tons of money to the states and municipalities, but are now seeking money from taxpayers in order to stay afloat.

On November 4th, Vote YES to Repeal the Casino Law

Vote YES on #3

Vote YES to STOP the Casino Mess

Bailing Out Casinos

Gambling fight set to test governor’s power


INDIANAPOLIS (AP) — Republican Gov. Mike Pence does not often take hard stances when it comes to items facing the Indiana General Assembly, but one issue he has been firm on since taking office is his opposition to expanded gambling.

That position could put him at odds with Republican lawmakers willing to hear out Indiana’s struggling gaming industry, which — hobbled by the recession and new competition just across state lines — is preparing to make a major push for expansion when lawmakers convene in January.

The state’s casinos would like to move their operations on land, while the two “racinos” — racetracks with slots — would like to add live table games.

The issue has not always been a marquee one inside the Statehouse of late, either taking a backseat to proposals like tax cuts in 2013 or being punted during this past session.

But questions are already bubbling up for Pence, and whether he would consider measures to save the ailing industry — and the money it provides for the state coffers.

Southwest Indiana leaders, looking to support the Tropicana Casino, attempted to pin the governor down on the issue this past summer during one of his stops in Evansville.

“It is not my intention to pursue policies that reduce gaming in Indiana, but neither is it my policy to expand gaming in Indiana,” Pence told the Evansville Courier Press, repeating his oft-stated position on the issue.

Ed Feigenbaum, a veteran observer of the state’s gaming industry and editor of Indiana Gaming Insight, notes that Pence has been clear about opposing any expansion, but has also been open to tax breaks and other forms of aid to maintain the status quo in the state.

“Lawmakers would like to see a clearer definition of what he will accept or not and learn a bit more about why he feels that way philosophically, given the economics of the situation and the reality of the world facing the industry in Indiana and its 13,000 direct jobs,” Feigenbaum said. “In the end, however, they may simply go their own way, and if there is sufficient support for change in the Legislature, they may risk a veto and consider an override.”

Indiana’s governor can veto measures, but lawmakers can override that veto with a simple majority — the same hurdle needed to pass any legislation in the first place. That effectively dilutes the power of any veto.

Gambling in Indiana has long been the province of the state’s Democrats, with legalization of casinos and slots at the racetracks all happening under Democratic governors. The gaming operations themselves have often provided jobs in either current Democratic strongholds — like northwest Indiana — or former strongholds along the Ohio River.

But the question now falls to Republicans, who hold the governor’s office and supermajorities in both the House and the Senate. One of the key players, House Public Policy Chairman Tom Dermody, R-LaPorte, began a series of hearings on the issue last month, vetting the issue ahead of January’s session.

Pence has maintained a light touch with the General Assembly, adopting an approach of submitting broad legislative agendas and relying on fellow Republican lawmakers to fill in the key details. Both of his tax cut plans, offered in 2013 and then in 2014, were altered significantly by Republican legislative leaders.

But at the end of each session, Pence, Senate President Pro Tem David Long, R-Fort Wayne, and House Speaker Brian Bosma, R-Indianapolis, walked away from the session touting the tax cuts as universal victories — regardless of how they looked.

Gambling expansion has the potential, however, to put Pence opposite those same Republican leaders. The results next session will offer a true mark of his influence inside the Statehouse, and, more specifically, the General Assembly.




Posted: Sunday, October 5, 2014 12:00 am

Realign, don’t expand, casinos

Gov. Mike Pence has clearly stated he does not want an expansion of gambling in the state of Indiana. Many people throughout the state agree with him, including several in the state legislature.Indiana currently has 13 casinos, 10 of which border neighboring states. For many years, non-Indiana residents would cross over into Indiana and gamble with Hoosiers. In 2011, Indiana was the third largest commercial gaming market by revenue. Since then, Ohio and Michigan casinos have developed, with Illinois discussing land-based casinos as close as Danville and Kentucky debating the need for casinos in the Bluegrass State.

http://www.chronicle-tribune.com/opinion/realign-don-t-expand-casinos/article_d419a4d8-4c3f-11e4-8a9b-8feebf9adf28.html

New York State: Bailing Out Racinos!

If you're GAMBLING at 4 AM, how is that 'HARMLESS ENTERTAINMENT'?

This is why REPEAL THE CASINO DEAL is the only reasonable solution!

Bill would allow racinos to stay open longer hours

By Julio Olivencia
Staff reporter

July 03, 2014

A bill aimed at helping the state's nine racetrack casinos would allow them to stay open until 6 a.m. and increase incentives they can offer customers.

The bill (A.10075/S.07833) increases the amount of free play credits the casinos can offer and changes the time casinos must close from 4 a.m. to 6 a.m.

"There are weekend nights when we have a few hundred people on the floor when we close," said Taryn Duffy, spokeswoman for Empire City Casino in Yonkers, explaining the need for the change.

The bill, sponsored by Assemblyman Phillip Goldfeder, D-Rockaway, is an attempt to help the so-called racinos improve declining profits.

According to Vernon Downs minority owner Gary Greenberg, the nine rasinos made $2.5 million less the week ending on June 28 than it did the same week last year.

"June 2014 is the seventh consecutive month net win has slumped," Greenberg said in an email. "June saw net win for nine racinos decline a severe $11,446,409. This is the largest decrease in any month in VLT history in New York."

The casinos are looking forward to the potential free play increase.

The amount of tax-free free play credits a casino can offer their customers is currently capped at 10 percent of their annual income. The new legislation would increase this to 15 percent.

"Free play is the only marketing tool that we have," Duffy said. She likened free play to a coupon the casinos can give their customers.

The change in closing time, on the other hand, is not as widely anticipated.

Smaller casinos most likely won't extend their hours as the amount of their business won't justify the increased operating cost, according to Jeff Gural, CEO and Chairman of American Racing & Entertainment LLC which owns Tioga Downs Casino. Tioga Downs currently closes at 3 a.m. and there is no plan to change.

Greenberg said Vernon Downs may extend their hours on weekends and holidays, but definitely wouldn't during the week.

Duffy said Empire City Casino, which is larger than Tioga Downs and Vernon Downs, will explore "what makes sense operationally" and adjust as needed.

The bill, sponsored by Sen. Jeffrey Klein, D-Bronx, was passed in the Assembly on June 19 and passed the Senate June 20. It awaits action by Gov. Andrew Cuomo.




http://www.legislativegazette.com/Articles-Top-Stories-c-2014-07-03-88497.113122-Bill-would-allow-racinos-to-stay-open-longer-hours.html

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

(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.

http://www.delawareonline.com/story/news/politics/2014/06/29/casino-aid-debate-reaches-final-day/11730345/

Delaware Casino Bailout

Delaware Casino Bailout Plan Is Analyzed by Lottery & Gaming Commission

By Steve Larson

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Delaware Park Would Save Millions of Dollars under the Plan

 

 

The Lottery and Gaming Commission of Delaware created an estimate of the planned $20 million bailout of the states casinos. A panel of lawmakers have suggested the state give back some twenty million dollars in fees to the land-based casino industry, to help their gaming venues compete against tough competition in nearby states.

The final vote will happen later this year, with most expecting some form of relief for the gaming interests in the state. The other major alternative plan is a $14 million bailout plan by another panel member.

Sharing Vendor Costs

Effective July 1st, the state would share vendor costs with the casinos at Dover Downs, Delaware Park, and Harrington Raceway & Casino. The taxpayers would pay 75%, while the gaming venues would pay 25%. Though this would not hit the state fully in the 2014 fiscal year, it should cost the state about $9.9 per year.

Reduce Tax on Table Games

The table game revenue would be reduced from the current 29.4% down to 15%. These fees are collected only on winnings. The reduced table game revenue include the traditional table games like blackjack, craps, and roulette. It also includes poker, which in online gaming is often considered a different form of gambling.

If this reduction went into effect, it would save the casinos $7.2 million per year, or cost the state the same amount, depending on perspective. It should be noted that 4.5% of this revenue is used to fund purses at the Delaware horse races.

Eliminate Annual Table Game Tax

Since 2010, the casinos have had to pay an annual table game license fee of $1 million apiece. The panel suggests these annual fees be waived, starting July 2015. If this were applied, it would cost the state $3 million.

Total Cost to Taxpayers

Add these three changes to the way revenues are collected and it will cost the state $20.1 million.

Once again, the full amount of the discount for the three land-based gaming venues in Delaware will not be felt until 2015. For the 2014 fiscal year, Delaware will lose $9.9 million in revenues.

If the current proposals were enacted, then provisions call for these issues to be addressed again for the 2015-2016 fiscal year. Given recent history, it appears these discussions may take place every or so. Last year, deliberations were held to bailout the casinos in a similar way, though the amount offered was only 40% of what’s being proposed this year.

2013 Bailout Price Examined

In 2013, state lawmakers offered an $8 million rebate to the gaming interests in the state. At the time, officials from the various racecourses claimed they were having difficulty competing with gaming facilities in other nearby states. Management at these establishments said they might have to make significant layoffs to remain a viable business.

This is not to imply the casinos are making up their financial difficulties. Taxes on the casinos generated for the year ending in June 2014 equal $180 million. That figure is down $58 million from the amount collected just four years ($238 million), showing that the three venues are facing major troubles from the increased competition of casinos in Pennsylvania and New Jersey.

State Lottery Sales also Decline

The state lottery also has shown a marked decline in the past 10 years. The state lottery generated $235 million in revenue in the last fiscal year. When you account for inflation, the amount collected is down 20% over a 10 year period.

That represents a major decline, due to alternative options like the multistate lotteries (Powerball, Mega Millions). Gamblers want ever-larger jackpots, which is something the Delaware state lottery simply cannot deliver.

What makes these figures more disturbing is the fact the lotto has added keno gaming and online play in those same ten years. Despite finding various other ways to collect money, citizens seem to be turning away from the traditional lottery games.

Why Taxpayers Should Pay More

Faced with the need to give back more to the gaming businesses, some taxpayers ask why the state should pay more. Severals reasons exist. One, the three gaming locations employ thousands of residents, so the bailout helps to keep thousands of people employed.

Two, the state funds education and Medicaid with the casino money it collects. If these businesses failed, then the taxpayers would lose a whole lot more money than they are being asked to give back now.


http://www.legaluspokersites.com/news/delaware-casino-bailout-plan-is-analyzed-by-lottery-gaming-commission/3290



Delaware taxpayers will be out $20 million if a casino-bailout plan passes the Legislature. One of the unspoken attractions of casino gambling for states is that it’s industry that pays its own. When it’s got its hand out for a taxpayer subsidy, it’s time to reexamine

the premises under which the industry operates. In the Delaware giveaway, taxpayers would be on the hook directly for $10 million in costs paid to slot vendors. (In effect you’re playing the slots even if you never put a coin in one.) The yearly table-game tax would be zeroed out. And the annual tax rate of 29% on table game revenue would go down to 15% from 29%. The whole magilla will also be renegotiated in 2015-16.

Racinos in Delaware were approved both to help the state and its horseracing industry. Now the casino industry is playing the role of mendicant, begging for a handout. Has anybody thought of suggesting to the racinos that they cut costs by $20 million, instead of panhandling John Q. Taxpayer?

http://dmckee.lvablog.com/?p=13102

Believe It Or Not Department: States Pay Casinos To Stay In Business Or Try To

Okay, first New Jersey takes $250 million dollars of TAXPAYER money and give it to the casino. Then the casino files for bankruptcy anyway.

Be thankful you don't live in New Jersey (we'll get back to you on the Massachusetts debacles).

http://www.nationalreview.com/node/351493/print

NOW, Delaware PAYS the casino $8 million dollars in (you get guessed it) taxpayer money so the casinos won't start firing people:

 

 http://www.washingtonpost.com/blogs/wonkblog/wp/2013/06/19/delaware-is-bailing-out-its-casinos-wait-what/

So, If I understand this correctly, the casinos come to town riding a big horse and tell us all the money THEY are going to give us. Then, limping a few years later, they tell us that if we don't give them OUR money, they're going to start firing people or even close shop altogether.

"Wow, what a deal. We'll take 4" (says Deval Patrick and our State Legislators)

You know what to do . . .

John