With Pennsylvania slots in operation barely two months and Maryland officials wavering on whether to push for the one-armed bandits this year, at least one Delaware legislator believes now is the time for the state to play its trump card.
State economic officials have projected a downturn in video lottery revenue, which has bolstered state coffers by more than $1.3 billion since its inception in 1995.
The expected loss of revenue, combined with a cash-strapped budget proposal that is dependent on the passage of a controversial cigarette tax, creates a perfect storm atmosphere to reintroduce sports betting in Delaware, said Rep. William A. Oberle Jr., R-Newark.
“Given the economic situation – particularly on the capital end – the timing is good to begin to address this,” said Rep. Oberle, who has been pushing for the state to explore sports betting for several years.
Rep. Oberle said he is gathering information about the economic impact sports betting could have on Delaware and its tourism industry and intends to introduce legislation this spring to re-establish betting.
Sports betting, or sports gaming, has been a topic of discussion for years, with advocates claiming it could provide the First State with a competitive edge that no one could beat.
Delaware is one of only four states – and the only one east of the Mississippi River – grandfathered from a 1992 federal law prohibiting sports betting. Montana, Nevada and Oregon are the others excluded from the law.
Delaware’s lottery had a sports game in 1976 and the state constitution allows sports betting.
Supporters lining up
Allowing sports betting is the state Video Lottery Advisory Council’s top suggestion, said panel chairman Edward J. Sutor, who also is Dover Downs Hotel & Casino vice president and chief operating officer.
“It’s a terrific marketing opportunity to be able to have an East Coast monopoly,” Mr. Sutor said. “It’s a marketing dream.
“Other states would give their right arm to have that advantage.”
That unique advantage, he said, would give Delaware’s slots an edge to counteract the strides surrounding states are making in the gambling industry.
Pennsylvania’s slots are up and running, he said, while Maryland has been discussing the issue recently.
West Virginia is inching toward approving table games – such as blackjack, roulette and poker.
“When is the right time to (pass legislation)?” Mr. Sutor asked.
“Once legislation is passed, we can’t start (with sports betting) immediately. You have to write rules and regulations and allow the casinos to build the facilities.”
Stabilizing and strengthening the slots industry through sports betting would have an ancillary benefit for horse racing, said Salvatore DiMario, executive director of the Delaware Standardbred Owners Association.
Slots contributed about $67 million to horse racing purses in fiscal 2006 and have been credited with revitalizing the industry.
“We favor it, obviously,” Mr. DiMario said. “It’s a critical revenue stream.
“The engine that drives the horse racing industry is the purses. If the purse money is diminished, investment into horse racing is diminished proportionately.”
That, he said, would have a ripple effect throughout the $280 million standardbred industry, including horsemen, farmers and trainers.
Source: Delaware State News