Independent five-member commission would determine location of New Castle, Sussex facilities
DOVER – House Majority Leader Rep. Peter C. Schwartzkopf released draft legislation Monday, which he will file later this week to authorize two additional casinos in Delaware, one each in New Castle and Sussex counties.
The proposal, which will be House Bill 40 when formally filed on Thursday, differs from previous casino expansion legislation in that it would establish a commission to determine the location of two new casinos: one each in Sussex and New Castle counties. The governor-appointed Lottery Redevelopment Committee – which would include the Secretary of Finance, Delaware Economic Development Office director, a retired judge, a retired law enforcement officer and a retired banker – would have the final say in which two proposed casinos get licenses.
The existing three Delaware casinos have fought any proposal to add another gaming facility, but Rep. Schwartzkopf noted the state authorized and funded an independent study that determined last year the market would support two more casinos in Delaware. Additionally, the owners of Delaware Park in Stanton recently opened a casino just south of the Delaware line, Ocean Downs, which Rep. Schwartzkopf said will take revenue out of the First State.
“Their target audience is the same people who live in Sussex County and play at Harrington Casino,” said Rep. Schwartzkopf, D-Rehoboth Beach. “So what we have now is the owner of Delaware Park taking millions of dollars out of New Castle County and investing it in Maryland so that they can take millions of dollars in revenue out of Sussex County.
“This legislation will accomplish several things: it will create thousands of good-paying jobs, both construction and permanent, for Delawareans; it will increase revenue to the state; it will increase revenue to the horsemen and the racing community; and it will protect the current number of racing days for the tracks.”
Under the proposal, the Lottery Redevelopment Committee would be appointed within 30 days. Project applications would be submitted 90 to 120 days after the application process begins, and the committee must make its decision on the two locations – by majority vote – within 60 days of the submission deadline.
The committee would review each application and judge them based on multiple criteria, including, at a minimum:
- Overall anticipated revenue of the Delaware Lottery at each location;
- Capacity of the project to create the maximum number of permanent and temporary jobs filled by Delaware residents;
- Business plan for the project and the “core project elements” – components of the project that would be complete when the gaming facilities are ready to open;
- Financial viability of the project and the financial investment made to date;
- How soon a project could be open for business;
- Effects on the surrounding community.
The two new venues would contribute to the horsemen and the racing community regardless of whether they have a racetrack. Having contributions from five facilities instead of three will increase purses. The legislation also guarantees a set number of racing days for the industry.
Rep. Schwartzkopf said that comparisons some make to Atlantic City are both unfair and misleading. “Atlantic City jams 11 casinos into a city that is less than 12 square miles, and the casinos would probably fit into two square miles,” he said. “Delaware has three casinos in two counties. We’re talking about a total of five venues spread out across 2,000 square miles.
“The independent study commissioned by the Video and Sports Lottery Commission says that the market would support two more casinos. At a time when our primary focus is putting Delawareans back to work, this proposal does just that while increasing revenue to the state and protecting the horse-racing industry.”
HB 40 will be assigned to the House Gaming & Pari-mutuels Committee.