Delaware Casino Tax
Posted : admin On 4/8/2022DOVER — Legislators last week introduced a bipartisan bill to provide relief to Delaware’s three casinos that supporters say is sorely needed. “The casino industry pays all the same taxes as. As per the current Delaware taxation rules, casinos pay a 43 per cent of their slot machine revenue and 20 per cent of the table games revenue as taxes, along with an annual table games licensing fee of $3 million. This nicely fills up the state coffers, but according to some lawmakers and representatives of the industry, such a tax structure.
5.3.4 Service companies shall have a valid license to conduct business in the State of Delaware, shall comply with all applicable tax provisions, and shall in all other respects be qualified to conduct business in Delaware. Play Responsibly — If you or someone you know has a gambling problem, call the Delaware Council on Gambling Problems Helpline: 1-888-850-8888 or visit DEProblemGambling.org. It's the Law — You must be 18 years of age or older to purchase Delaware Lottery tickets. You must be 21 years of age or older to play Video Lottery, Sports Lottery. The typical Delaware homeowner pays just $1212 every year in these taxes. Delaware Tax on Cigarettes. The state of Delaware increased the tax on cigarettes by $0.45 in 2009. Other products made with tobacco also had their rate increased. Cigars and tobacco, for example, increased the tax rate by 50 percent of the purchase price. Delaware Tax on.
DOVER — Legislators last week introduced a bipartisan bill to provide relief to Delaware’s three casinos that supporters say is sorely needed.
“The casino industry pays all the same taxes as any other business in Delaware,” Sen. Brian Bushweller, D-Dover, said. “You pick a tax and they’re paying it … but in addition to it, through the first three quarters of 2017, Dover Downs paid $56 million between the horse racing industry and the state.”
The third attempt at providing aid to the casinos over the past three years, Senate Bill 144 would change the tax structure, slash the table game tax rate in half and eliminate the annual table game license fee.
Currently, 43.5 percent of all casino revenue (not counting money returned to players and paid to vendors) goes to the state.
The bill would create a bracket structure resembling what was set up when lawmakers first approved slots gambling in 1994.
Under the bill daily revenue of no more than $75,000 would be taxed at 32 percent, revenue greater than $75,000 and less than $150,001 would be taxed at 35 percent, revenue between $150,000 and $225,001 would be taxed at 37.5 and revenue of more than $225,000 would be taxed at 43.5 percent.
In addition, the table game tax rate of 29.4 percent would be cut to 15 percent and the $13.25 million table game license shared between the state’s three casinos would be disposed of.
According to Sen. Bushweller, the main sponsor of the legislation, the measure carries an estimated cost of $21 million to the state government. It’s a cost he believes Delaware cannot afford not to pay.
Dover Downs, the only public casino in the state, had 1,401 employees, including 889 full-time workers, as of the end of 2016, according to the Securities and Exchange Commission. Harrington Raceway & Casino, meanwhile, employs “several hundred” more people, Sen. Bushweller said.
“Since the slots were instituted in the 1990s in Delaware, the state has persistently and routinely increased its take from the overall … slot machine revenue to a point where they’re no longer able to function like a normal business,” Sen. Bushweller said.
Casino executives have been pushing for years for relief, but nothing has been done since 2014, when legislators agreed to shift $9.9 million in slot vendor costs to the state.
Bills to provide assistance to the casinos in 2015 and 2016 both went nowhere.
This year, however, the state’s financial picture is much stronger, greatly increasing the chance of passage.
“I will say that it’s been clear to me over the past two or three years, an increasing number of members of the General Assembly have come to understand the issue and I think want to try to do something about it,” Sen. Bushweller said. “Whether we can do something depends on a lot of other factors.”
Opponents paint casino relief as a “bailout,” arguing the state should not provide aid to private businesses.
Dover Downs’ top executive’s response?
Denis McGlynn
“This isn’t what free enterprise is supposed to be about,” President and CEO Denis McGlynn said of the casinos keeping less than half of their revenue. Through the first nine months of 2017, Dover Downs had lost $289,000, he noted.
The bill would go a long way toward stabilizing Dover Downs in the near future, Mr. McGlynn predicted.
Should the current trend — a result of casinos opening in other states and increased tax rates — continue with no financial relief, the casinos may no longer be able to keep their doors open, supporters have said.
A spokesman for Gov. John Carney did not comment directly on the legislation but shared more general thoughts on the casino industry.
“Gov. Carney views the state, equine industry, casinos and other lottery agents as partners in building and sustaining the state’s gaming industry,” Jonathan Starkey wrote in an email. “Delaware’s three racinos are major employers — and help generate significant revenues for the state.
Delaware Casino Tax
“Delaware also continues to face long-term budget and revenue challenges. The governor will keep all these factors in mind when considering policies affecting our state’s casinos.”
Senate Bill 144 lists 13 Democratic sponsors and seven Republican backers, and the number of sponsors from New Castle County and from the lower two counties is close to even.
The bill’s co-sponsors include Senate Democratic leadership, an indication the measure is likely to receive strong support in at least one chamber.
The proposal has been placed in the Senate Banking, Business & Insurance Committee.
Staff writer Matt Bittle can be reached at 741-8250 or mbittle@newszap.com.Follow @MatthewCBittle on Twitter.
- Horseracing (1935), Lottery (1974), Casinos (1994)
- $253 million
- $635 million
- 18 for lottery and bingo, 21 for casinos and racing
- Smoking is banned in Delaware casinos.
- Horseracing, poker, and casino games
Delaware casinos and gambling is a massive industry considering the size of the state. The state offers more forms of gambling than any other state with the exception of Nevada. Delware gambling dates back to 1760, 27 years before it became a state. Underground horseracing pools operated during that time. This activity became regulated in 1933. It is one of the oldest forms of legalized gambling in the country.
The Delaware Lottery manages all of the gaming within the state. It has the full power to regulate existing gambling and introduce new ones. This includes its online gambling industry. In addition to the traditional lottery games, there are also legal Delaware casinos, horse racing, and sports betting.
Delaware Casinos Map & Guide
- Delaware Park
- Dover Downs
- Harrington Raceway
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Types of Delaware Online Gambling Allowed
There is a wide variety of Delaware online gambling. Like most states, it permits off-track betting on horses. The most popular sites for this are TVG and TwinSpires. It is one of just two states, New Jersey being the other, that regulate online casino games. The software is provided by 888. It includes blackjack, roulette, Jacks or Better video poker and about 15 slot titles.
Online poker is also legal in Delaware. The Delaware Poker Network, created in 2015, connects to WSOP.com in Nevada. This is the only legal interstate poker liquidity pool in the U.S.
Players will find online poker and casino games at the websites belonging to the state’s three racinos. Those are Delaware Park, Dover Downs, and Harrington Raceway.
The state lottery regulates the Delaware online gaming sites. It is the only lottery in the country that oversees poker and online casino gambling.
Daily fantasy sports sites operate in Delaware. DraftKings and FanDuel are among the companies that claim fantasy sports is a skill game. Delaware officials have yet to release an opinion on the legality of fantasy sports sites in the state. An investigation is underway.
Types of Live Delaware Gambling
- Slots: Yes
- Blackjack: Yes
- Poker: Yes
- Craps/Roulette: Yes
- Horses: Yes
- Lottery: Yes
The full spectrum of Delaware gambling is completely legal within its borders. Most of it is regulated by the Delaware Lottery in cooperation with the state’s three horseracing tracks. The racing venues operate live tracks and off-track betting. There is also a full slate of casino games inside at these tracks. These are known as video lottery Delaware casinos. Slots, video poker, tables games using cards, craps, roulette, and live poker are all offered at these Delaware casinos.
Poker is permitted at charitable rooms in Delaware. However, with online poker being legal, it has overshadowed any attempt to illegally play poker in other venues.
The Delaware Lottery sells traditional scratch-off and lotto tickets. This includes interstate drawings. Delaware’s lottery is the only one in the country that sells sports betting tickets. Bettors may purchase parlay cards for NFL games. No other sports are permitted, nor are straight bets on a game. Delaware tried to offer Nevada-style sports betting but was stopped when challenged by the sports leagues.
Delaware Gambling Laws
The Delaware Lottery has nearly full control of the state’s gaming industry. It regulates racing, casinos, and the sale of its own tickets. Delaware leaves all major decisions for the lottery. A constitutional amendment is not necessary for expansion.
At this time, the Delaware Racing Commission permits horseracing at the venues; Delaware Park, Dover Downs, and Harrington Raceway. These tracks are also permitted to operate full Delaware casinos, with games including:
- Slots
- Video poker
- Blackjack
- Three Card Poker
- Four Card Poker
- Ultimate Texas Hold’em
- Craps
- Roulette
- Baccarat
- Pai Gow Poker
They also have a wide range of live poker rooms under the lottery’s oversight. These three Delaware casinos also have online betting sites that spread blackjack, roulette, video poker, and slots. Online poker rooms are also branded with these sites. The racinos do not operate gambling sites. That is left to the Delaware Lottery. The racinos simply lend their branding and websites.
The tax rate on gambling in Delaware is 43%. This includes online gambling in Delaware. The first $3 million in annual revenue from online betting is taxed at a 100% rate. Since online gambling has yet to reach that number, the state’s racinos and 888, its software provider, have never seen a penny for their collective efforts.
The Delaware Lottery permits the governor to enter into poker liquidity sharing agreements. Governor Jack Markellcreated a gaming pact with Nevada Governor Brian Sandoval to create a joint pool of poker players in February 2014. This went live a year later.
Charity gambling is permitted in Delaware, although it is a very small segment of the state’s industry. Bingo, raffles, and poker tournaments are permitted. There is a charitable poker room in the state that specializes in No Limit Texas Hold’em events.
List of Delaware Casinos
Even with only three official Delaware casinos, it is enough to cover the entire state; as it is one of the smaller states. You can locate these casinos in Delaware by address or by checking their websites. However, for those that want driving instructions can use our Delaware casinos map as a guide. They do have another establishment, but the Performance Poker Room in Frankford is used only for poker.
| Casino | Size | Address | Website |
|---|---|---|---|
| Delaware Park – Wilmington | 2,540 Slot Machines | 777 Delaware Park Blvd. | www.delawarepark.com |
| Dover Downs – Dover | 2,600 Slot Machines | 1131 North DuPont Highway | www.doverdowns.com |
| Harrington Raceway – Harrington | 1,800 Slot Machines | 18500 S. Dupont Hwy | www.harringtonraceway.com |
| Performance Poker Room – Frankford | Only Poker | 34407 Dupont Blvd. | No website |
Delaware Gambling History
Gambling in Delaware dates back to before it became the first state to ratify the U.S. Constitution. The first racetrack opened in Delaware in 1760 in the town of Newark. It operated for more than 150 years with off-the-book betting on horses.
The Delaware Racing Commission was created in 1933. This regulated horse racing in the state for the first time. The first racing license was issued in 1935. Delaware Park was the facility. It is still open today.
Creation of Lottery and Early Beginnings
Delaware Casino Tax Relief
The Delaware Lottery was created in 1974. This permitted the sale of lottery tickets to generate revenue for the general fund. The first scratch-off ticket was sold in 1976. Lucky Stars was the first weekly lotto game. Its sales began in 1977. In 1991, the Delaware Lottery joined the Multi-State Lottery Association. This gave it access to interstate jackpots. Games offered these days through that agreement include Powerball and Mega Millions.
The Delaware Lottery expanded its reach to video lottery machines in 1994. This permitted the state’s three racetracks – Delaware Park, Dover Downs, and Harrington Raceway – to install slot machines. Table games, including live poker, blackjack, craps and roulette, were added in 2010. These games were previously only available in electronic format in Delaware casinos.
In 1976, the Delaware Lottery rolled out a new type of game. It was parlay cards for NFL games. Players were required to pick at least three outcomes. The NFL was not nearly as popular then as it is today. The idea was a failure and was discontinued after one year. The law remained on the books.
In 2009, Delaware tried to bring back sports betting. The state legislature expanded the breadth of the sports gambling to the same extent that is offered in Nevada. The sports leagues – NFL, NHL, NBA, MLB, and NCAA – took notice and filed a federal lawsuit to stop the games from going live. The sports leagues asserted that the Professional and Amateur Sports Protection Act (PASPA) did not permit Delaware to expand sports betting. Delaware is exempted from that law and the state insisted that it could offer and form of gambling.
PASPA is a federal law that sought to prevent the expansion of sports gambling. It exempted four states that had sports betting laws on the books at the time. Delaware was one of the exempted states.
The Third Circuit Court of Appealsaffirmed a lower court’s ruling that Delaware could only offer the same type of betting that was on the books when PASPA was enacted in 1992. That was three-team or more parlay cards on NFL games. This prevented the sale of tickets on all games and single betting on the NFL. Delaware went ahead with its NFL parlay cards through a partnership with William Hill. It has been considered a success.
Delaware became the second state to legalize online gambling in 2012. This permitted the Delaware Lottery to operate poker and casino sites on the Internet. The Delaware Lottery contracted with 888 to provide the games. These are available from the websites of the three Delaware casinos, Delaware Park, Dover Downs, and Harrington Raceway.
Lotto Tax and Money Sharing
The Delaware Lottery tax rate is 100% on the first $3 million in revenues each year. The online lottery only generates about half that amount annually. This means that 888 and the racinos receive no money for their online games. This has made it impossible to promote the games as there is no motivation.
Delaware Governor Markell signed an interstate poker liquidity sharing agreement in February 2014 with Nevada Governor Sandoval. This went into effect in March 2015. Delaware online poker players have access to WSOP.com in Nevada. This expanded the online poker game available ten-fold but did not help the state increase revenue. Online poker only generates about $30,000 in rake each month. Casino games win about $100,000 monthly.
Delaware Casinos & Gambling FAQ
Yes. It has been around for hundreds of years.
Yes. You can check out our casinos list or use our Delaware casinos map to locate them.
Delaware Park is located in Wilmington. Dover Downs is in Dover. Harrington Raceway is in Harrington.
Slots, video poker, live poker, blackjack, craps, roulette, blackjack and other house-banked card games are all legal in Delaware casinos.
Yes. It was the second state to regulate and legalize online gambling.
What games are legal at online casinos in Delaware?
Blackjack, roulette, video poker, Texas Hold’em, Omaha, Seven Card Stud and slots are legal at Delaware online casinos
Delawarepark.com, Doverdowns.com, and Harringtonraceway.com are the three websites that offer the Delaware online lottery.
The Delaware Lottery sells parlay tickets based on three or more outcomes on NFL games. These are the only sports betting tickets written in Delaware.
Why can’t Delaware offer full sports betting since it is exempted from PASPA?
PASPA only exempted the types of sports betting permitted in 1992 when it passed Congress. For Delaware, that means it may only offer NFL parlay cards.
Nevada, Montana, and Oregon are the other three states exempted from PASPA.
The minimum Delaware gambling age is 18 years for traditional lottery players. The minimum gambling age for sports lottery, off-track betting and casino is 21 years.