DE Sports and Video Lottery Commission Recommends Against New Casinos
…or — perhaps we should call this Watching the Delaware Legislature Put Their Ninny Hats On. Ginger Gibson at the News Journal documents the atrocities.
This is a completely mind-boggling recommendation by this Commission and flies in the face of the recommendations (and data gathered) by their own commissioned study:
Several lawmakers insisted that any financial harm to the existing racetracks was unacceptable, even if job losses there were compensated for with new jobs at new venues.
“I think there are some things wrong with the study,” said Rep. Clifford “Biff” Lee, R-Laurel, who is a member of the gambling commission.
Five of the six lawmakers who served on the gambling commission voted Tuesday morning to add a contradictory footnote before submitting the study to the Legislature on its first day; Lee, Senate Majority Leader Patricia Blevins, D-Elsmere, Sens. Nancy Cook, D-Kenton, Colin Bonini, R-Dover South, and Rep. Helene Keeley, D-Wilmington West.
Read that again — any financial harm to the existing racetracks was unacceptable.
This is just what Delaware needs — another protect at all costs industry. Wonder where they were when Borders and Barnes and Noble were building like crazy and pushing out independent booksellers? Or do you think that we can get these guys to weigh in on the side of local businesses when the newest Walmart comes up to be built? Probably not, because this Commission has decided that casinos are a Too Big to Fail industry for Delaware.
And even then this doesn’t quite work since adding more casinos definitely adds jobs and adds to the overall financial health of the state’s gambling industry. Any lost jobs by Dover or Harrington are basically a function of how well they can compete and I really do not see why these casinos need the protection of the state if they aren’t ready to be aggressively competitive.
Which brings me to my next point — what is up with the R’s on this committee voting against a Free Market for the gambling industry? Colin Bonini is supposed to be one of these free-market conservatives and here he is voting for protectionism. Wonder when the CRI takes him to task for betraying the cause. Yeah, that was a joke. But still there is a difference between specific business protectionism which is often short sighted and in the long run expensive for taxpayers and creating an atmosphere where an industry is welcome and able to compete. And this protectionism is going to be expensive for Delaware taxpayers. Because the next step — once the MD and PA casinos come on line — is for Dover, Harrington, Delaware Park to start lobbying this Commission and the larger Legislature for special considerations. That will take the form of givebacks on revenue sharing or some special funding to help them get more competitive. And this legislature will be back whining about jobs — jobs they plainly don’t give a damn about right now — to try to get them more money. More money that this vote by this Commission has already told you they will make sure they’ll get — because protected industries get a special place in line for taxpayer funds.
This Commission thinks that you’ll never remember their clear and abundant stupidity today. Voting to protect the currently weak from having to compete with new in-state casinos doesn’t speak well for these currently weak casinos’ capacity to compete with the upcoming out of state ones. So for all of you legislators looking to protect this industry, we are all pretty clear that the State doesn’t have the money to write the check you are writing today. I really do not want to see the State get in the business of propping up businesses that we already know are not going to survive the opening of new venues in Maryland and PA just because everyone involved in this simply could not think about long-term consequences.
If Schwartzkopf truly wants to embrace the findings of the commissioned study, he would admit that of the proposed Sussex casinos the one in Delmar is exactly what the study calls for, instead of continuing to tout the Millsboro facility he’s been schilling for.
Herb, read the report the commission did not take into account for the summer population at the beaches, when they factored that in the commission agreed the Del pointe project is substainable. It is also shovel ready, any other venue is at least 3 years from obtaining permits. Let me guess, you must work at Harrington, Dover Downs, or Del Park?
I think you must not be too familiar with the summer population at the beaches. People who go to Rehoboth barely leave Rehoboth Avenue. In fact, the city had to erect signs on the Avenue to remind people that shopping was available on the side streets. Do you really think those people are going to hop into their cars and drive all the way out to Millsboro? In summer traffic? Away from the beach? Nearly every one of those people have already passed by one of Delaware’s existing casinos on their way to the beach. I am not against the expansion of gambling at all, I just think that Schwartzkopf’s indignation is ironic when he himself is hell bent on ignoring one of the main findings of the study.
Well, at least we know who those legislators work for — and its not the people of Delaware.
Herb, yes I do think they will travel 30 minutes from the beach to visit a state of the art waterpark and other attractions. When Ocean Downs (Del Park owner Rickmans MD. venue)opens with slots, do you think people from Sussex County will travel a hr. to Dover and Harrinton when we can be to Ocean Downs in 20 minutes? For you to think that they would travel to Delmar is ridiculous. Take a nap, your 4-12 shift starts at Harrington in less than 4 hrs.
I’m also having trouble with “people who go to the beach stay at their beach” argument, since I’ve seen the parking lots, and the traffic, at the outlets.
The problem is Reps. and Senators like Simpson,Thornburg, Wilson are all on the board at Harrington, Look at all the Adams(2) & Cooks(4), Minners on the board of directors? Scuses(2 of them) (former COS for Gov.Minner) Rep. Walls family has a building named after them. Herb, do you think we are on a level playing field here?
Yeah, the stay ‘at the beach’ argument is silly. ‘At the beach’ now involves a much larger geography than it did even five years ago. Rehoboth is not the center of the universe and Route 24 is not the only path to Millsboro.
Bethany, South Bethany, and Fenwick Island have expanded west to Dagsboro and Frankford. New retirement communities and non-retirement housing are up, going up, or planned for both sides of Route 113 between Georgetown and Selbyville.
Not to mention Patty Keye (CEO of Harrington) whipping boy is Rep. Biff, “the Biffer” as she calls him, Lee. Biff just sits and heals when she enters the room like a old puppy dog.
I have heard the argument that the casino’s businesses are not just gambling. The issue is that Dover Downs, for example, makes money with a ton of retail, food and entertainment. If there is a fixed number of gamblers in the state of Delaware (and I suspect the number is or will be relatively fixed) then you may draw down the number of gamblers at any one venue to support the ancillary businesses. So if you don’t have a critical mass of people at a spot, the spot will fail.
We may end up with a couple of abandoned casinos in the state, and that is exactly what we don’t need.
All that said, I think all casino revenue should be directed to a specific budget item (like education), rather than the general fund to balance our overall budget. This is no way to fund a government.
If the legislators are on the board, how can they vote. Its a conflict of interest and they must abstain. That is the Delaware Way and the public permits them to get away with it. Sad.
The issue is that Dover Downs, for example, makes money with a ton of retail, food and entertainment.
So, in other words, they are not wholly dependent upon gambling then. And, in other words, they have a platform to compete that is not wholly dependent upon gambling.
Really, i wish I understood why it is such a bad thing for these privately held entities to have to earn their customers the way that everyone else does. If the Legislature took the recommendation of their study, they would add two venues that are projected to provide a net increase in jobs. The fact that people may not go to Dover and Harrington anymore speaks to the fact that there were sites chosen in the first place that had nothing to do with competition and long-term survival. If these venues can’t compete with new blood in the state, they aren’t going to compete with the new ones. So sooner or later you are still facing abandoned casinos.
Well the legislature put the casinos in spots that previously supported horse racing. It could very well be that the hands of the casinos were tied by that situation. I don’t know. I am not a fan of casinos and don’t particularly want to live in Atlantic City. But I provide that view only to illustrate that I don’t give a damn about how this turns out for the casinos.
I care about the jobs, but I would much rather have a gay marriage economy than a casino economy.
LG, what is a gay marriage economy?
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Comment by anon. on 13 January 2010 at 12:35 pm:
Herb, yes I do think they will travel 30 minutes from the beach to visit a state of the art waterpark and other attractions. When Ocean Downs (Del Park owner Rickmans MD. venue)opens with slots, do you think people from Sussex County will travel a hr. to Dover and Harrinton when we can be to Ocean Downs in 20 minutes? For you to think that they would travel to Delmar is ridiculous. Take a nap, your 4-12 shift starts at Harrington in less than 4 hrs.
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Comment by pandora on 13 January 2010 at 12:40 pm:
I’m also having trouble with “people who go to the beach stay at their beach” argument, since I’ve seen the parking lots, and the traffic, at the outlets.”
These posts scream out that you folks don’t know what you are talking about when you talk about the beach area. Maybe YOU can get from Rehoboth to Millsboro in 30 minutes, in the summer, but not all of us have helicopters…
The Outlets are still “the beach,” and people go there because of the tax free shopping. I’ll point out that Schwartzkopf was also strongly considering killing off the outlets by implementing a state sales tax and destroying forever Delaware’s greatest marketing advantage. Millsboro is decidedly NOT “the beach.” It is even further away in the summer.
Herb, your theory doesnt hold water. People leave the beach everyday to drive to casinos in Kent County. Why wouldnt they drive to Del Pointe?
anon. – I would rather that we legalize same-sex marriage and make Delaware a destination for same-sex couples to marry. We could leverage our already strong gay community in Rehoboth to build up small businesses (florists, space rentals, catering, bar-tending, gift buying, hotels, etc…) to support this unique feature in Delaware. If you also consider that gay couples often are older and more wealthy, you are talking about a large potential.
And pulling out the morality of the situation doesn’t work any more, since we are already talking about balancing our budget on an activity that is specifically prohibited in our state constitution.
Herb, you’re confusing me.
You claim that the “outlets are still the beach” and, yet, earlier you stated, “I think you must not be too familiar with the summer population at the beaches. People who go to Rehoboth barely leave Rehoboth Avenue. In fact, the city had to erect signs on the Avenue to remind people that shopping was available on the side streets. Do you really think those people are going to hop into their cars and drive all the way out to Millsboro?”
So are they hopping in their cars, or not?
And, it might surprise you to know exactly how much I know about the beach areas. Easy on the assumptions, okay?
BTW, I’m with LG on making Delaware a gay marriage destination!
Plus, we would have awesome restaurants 🙂
I am only half joking. With a decent nightlife, cultural opportunities, and some good data lines (not to mention increased gay rights), Sussex could attract some service industries from the Greenbelt/Beltway area. Software, consulting, design, etc. Maryland has a new sales tax on software services that is just begging to be exploited by Delaware.
Delaware is the only state where someone has a trailer 20 minutes from the actual ocean and they call it their beach house. The issue with erecting a casino in Milsboro is you will have day trippers. Sure their $20 in quarters ina slot is nice, but like Wilmington’s Riverfront or Market Street, what is their incentive to actually stay there? Downtown has no nite life becuase of crime and the fact you have to drive anywhere you want to go. a casino in Milsboro is the same thing.
Build a casino in Milsboro with a hotel and a signature golf course and add a wave pool or something similar and then use the outlets as a day time trip. Run a bus there and back, but a casino as a stand alone attraction doesnt have any holding power.
Personally, I would rather see them turn one of the dumps on the boarwalk into a hotel/casino or put on on the riverfront with a hotel attached. Give out of towners a reason to go there and stay there.
And, it might surprise you to know exactly how much I know about the beach areas. Easy on the assumptions, okay?
Not everybody knows that you have a helicopter, Pandora, so cut this commenter a break.
😉
“Herb, you’re confusing me.
You claim that the “outlets are still the beach” and, yet, earlier you stated, “I think you must not be too familiar with the summer population at the beaches. People who go to Rehoboth barely leave Rehoboth Avenue. In fact, the city had to erect signs on the Avenue to remind people that shopping was available on the side streets. Do you really think those people are going to hop into their cars and drive all the way out to Millsboro?”
So are they hopping in their cars, or not?
And, it might surprise you to know exactly how much I know about the beach areas. Easy on the assumptions, okay?”
It’s not an assumption, it’s an observation. I’m reading your posts and it’s obvious you don’t know what you’re talking about. I said they “barely” leave the Avenue. When they do, they go to the Outlets. No car is needed to shop on the side streets in Rehoboth, my point was all about tourist tunnel vision. Do you think we could move the outlets to Millsboro and have them be just as successful with the beach crowd? Of course not. On a completely different note, are tourists to the beach really the kind of folks who drop nickels into slot machines? I bet they aren’t. They have disposable income, but they aren’t fools. Look around in a casino, you’ll find social security, disability, and welfare checks pouring into the bottomless pit that is the State of Delaware coffers.
Herb, the independent study says its feasible, but I guess you know more than they do? As far as a gay destination, I’ll pass on that one.
It’s already a gay destination. They question is whether we can capitalize on it or not.
The study did NOT indicate that Del Pointe should go ahead. The study said a casino should be built in the SOUTHWEST of the county. The Delmar proposal is the one that fits that bill.
I find it somewhat amusing that we will happily change our laws and “work around” pesky constitutional prohibitions so that we can make money from people that want to throw their money away at a possibility of getting lucky.
It is also amusing that Delaware is perfectly happy to change our laws to bestow benefits on banks at the expense of consumers so that we can be the home of credit cards for 2 decades.
And it is humorous that we can adjust tax and incorporation laws to enable companies to incorporate here and get favorable corporate governance laws.
Yet, as soon as you suggest that we actually change a law to give people that are in love an opportunity to express that love in public and give them the same protections as their opposite-sex equivalents, it is non-starter. Nevermind that it is way more friendly and beneficial to Delaware small-businesses and our local economy.
It is truly sickening.
There are 7 million people who visit the Delaware Beaches every year. TMG used 3.2 million in their figures because not everyone who goes to the beach is going to visit a casino. http://www.delawareonline.com/apps/pbcs.dll/article?AID=20101060345
And if you’re looking for proximity to the ocean, the closest proposed casino site would be the one on Rt. 9 in Georgetown. The Georgetown site is significantly east of Rt 113 and only about 15 minutes from Lewes.
If there is a total of 7M people who visit the beaches, certainly some portion of that number are kids who certainly aren’t going to a casino. Some potion of that figure would be people who really don’t have any interest in going to a casino for either personal reasons or because they’ve planned their vacations otherwise. I haven’t heard anyone impeach the DEDO number yet with any rationale that makes any sense.
Cass and Arthur: The Del Pointe proposal has far more than just a stand-alone casino. Check out their web site. I don’t understand why undercounting people at the beach would overstate income; if anything, it would boost it, no?
Besides, Dover has far fewer people but seems to do just fine supporting a profitable casino.
@Herb, re Millsboro vs. Delmar: Yes, and the report also suggests a location that sounds more like Claymont than Wilmington, but political realities being what they are, you’re pissing up a rainpipe.
And you might know a lot about tourists, but you apparently haven’t spent a cloudy week with kids in a too-small townhouse in the Bethany-Fenwick stretch of The Beach. By about the fourth night, you’ll drive a lot farther than that for something to do.
I’m not commenting on the proposal itself, but I thought that missundaztood was offering the argument that I heard from Helene Keeley that the report they commissioned was flawed because of an objection to the numbers used to build the projection.
But I don’t get — really — why this number factors in so highly for these guys. Anyone worth their salt would rework the 7M number anyway to accommodate the fact that kids and others will not be prime customers of these venues.
Personally, if I want to be at a beach that has gambling, I’m going to the Bahamas.
Geezer I think I would opt for a 5 minute drive to the Ocean City Boardwalk with the kids, even though the Casino/Kid’s Indoor Water Park proposal in Millsboro does sound enticing. But then so does the Casino next to the new children’s museum on the waterfront in Wilmington. Losing your mortgage payment in a family friendly atmosphere is clearly the wave of the future.
Cassandra, kind of hard to drive to the Bahamas isnt it?
Cassandra, nobody said kids would gamble, but ive never seen a kid that didnt like a waterpark, movie theaters or a paintball facility. Again its more than a casino. Something for everyone.
anon — there are times when it is hard to drive to the Delaware Beaches too!
Other anon — I think that the numbers referenced for the report were largely about the gambling venues. No doubt that kids will go to a waterpark, but the gambling is what people are thinking about competing with (and where the state gets paid). Again, I only talk about this because I have heard people try to impeach the casino report by complaining that it is not based upon everyone who visits the beaches. But not everyone who goes to the beach will visit a casino, which ought to be self-evident.
Well, really. I suppose there are people who would offload their kids, unsupervised, at a waterpark so they can gamble next door, but they don’t sound like the type of people that *I* want to vacation next to.
Cassandra, “there are times when it is hard to drive to the Delaware Beaches too”
guarentee you its alot easier to get to the beaches in the worst of traffic than to DRIVE to the Bahamas!
It looks as though the 7 acre paintball field has been scrapped in favor of more retail at Del Pointe.
http://www.delpointeresort.com/Del%20Pointe%20Master%20Plan%204B.pdf