The Delaware House of Representatives passed legislation Jan. 21 that would legalize table games at the state’s three racinos.
House Bill 310 now heads to the Senate and could be ready for Gov. Jack Markell’s signature by the end of next week.
Administration officials estimate table games will generate a total of $40.5 million in revenues for the state next fiscal year.
Dover Downs Hotel & Casino CEO Ed Sutor said he and his counterparts at Delaware Park and Harrington Raceway and Casino could have poker tables operating in as little as four months, while other table games like blackjack and craps could be online in six months.
Sutor said his facility is expected to spend $4.5 million to set up table games, which includes hiring and training 250 new employees.
Statewide, table games are projected to create 750 new jobs.
Though there was virtually no floor debate on the bill itself, the House spent an hour and a half discussing a slew of amendments to the legislation.
In total, seven amendments were attached to the bill and three were defeated.
Legislators voted down an amendment authored by Rep. Thomas H. Kovach, R-Brandywine Hundred South, which would have prevented sitting state legislators or their immediate families from filling any of the 40 new state lottery jobs created by the bill.
Those who opposed the amendment said it would usurp the state’s merit rules for employee promotions and transfers and could prevent a qualified candidate from obtaining a job.
House Majority Leader Rep. Pete Schwartzkopf, D-Rehoboth Beach, said the amendment could have an adverse affect on state police officers with the skills needed to work in the lottery enforcement division.
“If a child of a legislator is already a police officer and they have the expertise, this would limit their opportunities,” he said.
Though Kovach’s amendment failed, he did succeed with another amendment that precludes state legislators themselves from taking a newly created job.
The majority also shot down two Republican amendments that would have provided the opportunity for the state to increase its share of table game revenues.
One amendment put forward by Rep. Deborah Hudson, R-Fairthorne, would have raised the state’s cut from 29.4% to 47.5% of gambling revenues, if the casinos exceeded their projected revenue targets.
“We are in control of this monopoly and we should be equal players,” she said.
Schwartzkopf referred Hudson to the process by which the split was negotiated, which he said was fair.
Last summer, a panel consisting of Acting Finance Secretary Tom Cook, Controller General Russ Larson and Dover Downs head Ed Sutor hashed out the percentages over a series of contentious meetings. The committee was formed by the bill passed last year to legalize sports betting.
“We had three people directed by us to meet and negotiate the split,” he said. “It was not the most pleasant of meetings but the agreement was in good faith.”
After Hudson’s amendment failed, Rep. Greg Lavelle, R-Sharpley, proposed an amendment that would call for the legislature to reexamine the split in three years.
The plan, known as a “sunset provision,” would cause the current split to expire, reverting 100% of revenues to the racinos.
Lavelle was quick to say his intent was not to change the split in favor of the casinos, but the sunset clause would give the legislature the impetus to act.
“My intent is have us revisit the split. It might go up for the state, it might go down,” he said. “It would be incumbent upon us to revisit this.”
Schwartzkopf said the sunset clause carries too much legal weight and the legislature can’t be counted on to act on a particular timetable.
As an alternative, the majority leader said he’d entertain a provision that would compel the General Assembly to review or revisit the revenue split issue, but not using any language that would be legally binding.
“Review, revisit, all those words are meaningless,” Lavelle said.
In all, 27 representatives voted for the bill, five voted against it, six were recorded as “not voting” and three members were absent.
The representatives that went “not voting” were Reps. Brad Bennett, D-Dover; Earl G. Jaques Jr., D-Glasgow; Bill Oberle, R-Beachers Lot; William R. “Bobby” Outten, R-Harrington; Pam Thornburg, R-Dover West; and David L. Wilson, R-Bridgeville.
All except Jaques said they had a conflict of interest and could not vote. Jaques is opposed to gambling in general.
In the “no” column were Lavelle and Reps. Ruth Briggs-King, R-Georgetown; Gerald W. Hocker, R-Ocean View; Clifford G. “Biff” Lee, R-Laurel; and John C. Atkins, D-Millsboro.
Atkins’ justification for his vote indicates the next gambling battle facing the legislature: additional casinos.
“If Del Pointe was included in this, I would have voted yes,” said Atkins, referring to the casino resort project waiting to be built in his district should the General Assembly approve the establishment of new gaming venues.
Schwartzkopf said a bill for additional casinos could materialize before the legislature recesses for budget hearings at the end of the month.
“I have to look at the big picture,” he said. “I’m still moving on extra venues.”
Email Doug Denison at doug.denison@doverpost.com.
