3 Delaware Casinos to Receive Tax Break worth $16.8 Million

Delaware CasinoThree casinos of Delaware are all set for receiving a lovely gift from the state government. The local lawmakers of Delaware are working on a new bill that will allow three casinos to get a tax benefit to the tune of $16.8 million.

The State House of Representatives of Delaware has recently passed a bill that would give the casinos a tax relief they were longing for quite some time. The casinos were demanding for tax relief from the government for almost ten years. If everything goes perfectly, they will receive this gift from the state officially without further waiting.

With the implementation of new laws, the tax relief will provide the three casinos with a 1% reduction on slot machine taxes. Also, the tax rate on table games would be curtailed by 50%. The Parliament House members have voted 35:4 in favour of the new bill. This, in turn, would result in giving the three casinos a tax relief of $16.8 million.

This new bill will give some breathing space for the Delaware casinos and have a bit of cushion on their on their side if something goes wrong. Approximately 3000 people are working for the three casinos in the state of Delaware.

These casinos were repeatedly complaining about the existing tax regime and were requesting for the implementation of new tax rules. A high amount of taxes were squeezing all the profits from the casinos which could always lead to possible closure.

Delaware Casinos Happy about the Tax Rebate

Since the operation of casinos back in 1990, the Delaware state government has been increasing the tax rate on the casinos at regular intervals of time. The drop in the tax is life-saving for the casinos because they were facing a lot of losses in the overall operation and administration costs.

The government was of the opinion that higher taxes would boost the state budget and give rise to a healthy economy. However, it has turned out to be a nightmare for the casino operators in Delaware.

One instance of the exorbitant tax levied by the state government was back in 2008 where the casino operators had to pay 43% tax on the slot machines. This move was taken by the state government to help with the budget shortfall due to the recession.

Also, the table casino games were levied 30% tax and all the casinos in Delaware had to pay the annual licensing fees of $3 million each to the state government.

In a statement, Denis McGlynn, who is the Chief Executive Officer of Dover Downs Casino says:

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.

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