At one time, racetrack casinos contributed to as much as $239 million a year to the tax coffers of Delaware. But now the state’s casino revenues have fallen tremendously as a result of the growth of gambling destinations throughout the Northeast. This has prompted the industry to ask for tax breaks.
Delaware’s democratic Governor, Jack Markell stated, “It’s a different world for the Delaware casinos,” . Markell supports reducing the tax burden on casinos by as much as $20 million a year to allow them to compete with the expanded competition.
In the past ten years, more casinos have opened in the Northeast than in any other part of the country. The expansion has caused a shakeup in the Northeast region. New projects presently planned have many people wondering how many casinos the area can possibly support. As it is, states that adopted casino gambling early on, such as Delaware, New Jersey and West Virginia, are seeing revenues siphoned off.
Since 2004, twenty six new casinos have opened their doors creating a 39% uptick in yearly gambling revenues in the mid-Atlantic and New England, according to research conducted by the University of Nevada, Las Vegas. In the 1990s, Atlantic City enjoyed a monopoly on the East Coast regarding casino gambling but now there are 24 casinos within 100 miles of Philadelphia. Because around a dozen more gambling venues are slated to open from Massachusetts to Maryland, fears of losing tax revenues in states such as Rhode Island are growing.
The casino-building escalation is “a declaration of war—indirect war—by the states,” according to the Rev. Richard McGowan, a casino expert and Boston College adjunct associate professor. “What they’re saying is, ‘I want the revenue. I want the revenue back.’ ”
According to newly published Fitch Ratings report, the Northeastern market “is reaching a saturation point.” Gambling and business analysts are warning that similar market shakeouts are occurring in Indiana and Mississippi but on a smaller scale.
Surprisingly, Pennsylvania, which has charged out of nowhere to become the state with the second-most gambling revenue, after … Continue Reading “Casino Boom Pinches…” (Wall Street Journal)