The state will pay an independent research consultant more than $98,000 to complete a study on the viability of additional casinos in Delaware for the benefit of state legislators who likely will tackle the issue when the General Assembly reconvenes in January.
A state panel charged with investigating whether or not more casinos would mean more jobs and tax dollars for the state voted Nov. 12 to hire New Orleans firm TMG Consulting after interviewing three companies for the job.
The Video and Sports Lottery Study Commission, created by the same law that reauthorized sports betting in Delaware, wants TMG to complete its work by the end of the year so it can review the research and pass it along to the General Assembly and Gov. Jack Markell.
Staff from TMG told the commission their study will be based on demographic data and a telephone survey of 500 casino customers from Delaware and neighboring states.
Based on that information, the firm will use a computer model to project what new tax revenues could be generated by new gambling venues, anticipate the effects additional casinos may have on business at the state’s three existing facilities and determine where possible new casinos should be located to maximize the profitability of the whole system.
Including expenses and fees paid to a telephone survey subcontractor, TMG will charge the state $98,250 for its work.
Previously, TMG has worked for the state of Louisiana and the city of New Orleans, as well as the Trump, Caesars and Hard Rock casinos.
The commission also interviewed two other firms that responded to the state’s request for proposals issued in October, The Innovation Group, also headquartered in New Orleans, and the not-for-profit Center for Governmental Research.
Both firms would have used their own varieties of computer modeling and data mining to produce reports.
Those companies would have charged the state between $3,750 and $9,250 less than TMG, but the commission agreed they weren’t right for the job.
“Cost is always a factor, but I don’t see that as a defining issue,” said commission chairman Dennis Rochford.
The nine-member panel, which includes three state representatives, three senators and three administration officials, eliminated Innovation and CGR based on their levels of experience.
They said CGR hasn’t done enough work with the gambling industry, but Innovation has done too much.
In the past Innovation has completed work for two of the state’s three casinos. And just last spring the firm finished a study for the developers of the proposed Del Point project near Millsboro, a resort and entertainment complex that would include a casino.
