A panel of legislators and administration officials charged with examining the potential impact additional casinos would have on the state’s finances voted Jan. 12 to release a consultant’s report on the subject to the General Assembly and the governor’s office, but not before attaching a footnote indicating its disagreement with the findings.
On Jan. 5, the Video and Sports Lottery Study Commission reviewed the results of a study conducted by TMG Consulting which concluded Delaware could benefit from the establishment of two new casinos at opposite ends of the state, including a 25% boost in state tax revenue and the creation of thousands of new jobs.
However, the gains would come at the expense of the state’s three existing racinos, which TMG said could experience a 12% drop in revenues when new venues come online.
Senate Majority Leader Sen. Patricia M. Blevins, D-Elsmere, one of six legislators on the commission, argued that such a tradeoff would decimate the existing casinos and force layoffs that, while balanced out by new jobs at the new venues, would still put a sizeable number of Delawareans in the unemployment line.
In addition, the establishment of two new casinos without racetracks, as TMG recommends, would harm the state’s horseracing industry, Blevins said.
Instead of releasing the report without comment, Blevins said the commission should make its misgivings known.
“This [report] is a de facto recommendation,” she said. “Releasing the report without the commission’s opinion is a de facto recommendation of two new venues.”
The senator put her argument in the form of a motion that the committee approved in a 5-4 vote.
Blevins’ motion stated that, in addition to releasing the TMG report, “The commission further concludes that it opposes the de facto finding in the report that would recommend two additional video lottery facilities, due to potential job losses, notwithstanding any net job gains, the potential damage to the horse racing industry and destabilization of the three current video lottery facilities.”
Voting against the motion were the three commission members chosen by Gov. Jack Markell: Acting Secretary of Finance Tom Cook, Delaware Economic Development Office Director Alan Levin and commission chair Dennis Rochford, a Republican who serves as head of a regional maritime trade organization.
House Majority Leader Rep. Pete Schwartzkopf, D-Rehoboth Beach, also voted against Blevins’ motion. Schwartzkopf is a supporter of the proposed Del Pointe casino resort project awaiting approval in Millsboro.
