The company released its second-quarter revenue report on July 28.
Dover Downs Gaming & Entertainment Inc. on July 28 reported results for the three months ending June 30, 2016.
The company released the information in a formal filing with the United States Securities and Exchange Commission.
The company’s revenues for 2016’s second quarter were $46,224,000 compared with $45,301,000 for the second quarter of 2015, up by about $923,000. Gaming revenues were $39,058,000 compared to $38,058,000 for the second quarter of last year, an increase of $1 million.
Other operating revenues decreased to $7,166,000 compared to $7,243,000 for the second quarter of 2015 from lower room revenue and revenue in the second quarter of 2015 associated with the company taking over certain retail operations in the casino. Occupancy levels in the Dover Downs Hotel were about 88 percent for the second quarter of 2016 compared with 85 percent during the second quarter last year.
General and administrative, depreciation and interest expenses were each down compared to the second quarter of 2015.
Net earnings were $796,000 compared with $631,000 for the second quarter of 2015. Earnings per diluted share were $.02 in the second quarter of 2016 and 2015.
In a statement accompanying the SEC filing, President and CEO Denis McGlynn said the situation was exacerbated by the failure of the Delaware General Assembly to restructure laws on how casino revenue at Dover Downs and the state’s two other casinos is taxed.
“We were disappointed that the state budget shortfall that was revealed late in the legislative session preempted consideration of the recommended changes to the casino industry’s revenue sharing model set forth in Senate Bill 183,” McGlynn wrote.
Sponsored by Sen. Brian Bushweller (D-Dover) SB 183 was introduced Jan. 28, but was immediately assigned to the Senate Finance Committee, where it languished until the session adjourned at the end of June.
The bill would have eliminated table game license fees effective July 1, 2016, and would have reduced the state’s share of table game revenues to 20 percent on Jan. 1, 2017, and to 15 percent on Jan. 1, 2018.
Currently, the state of Delaware receives 29.4 percent of the casino’s table game revenues in the form of taxes to support the state budget.
This is the second year in a row that Bushweller attempted to reduce the amount of casino revenue allotted to the state. SB 183 had strong bipartisan support from the legislature’s Kent County delegation, however worries about shortfalls with the state’s FY 2016-2017 budget apparently caused the General Assembly to avoid any legislation that would have cut into the state’s revenues.
Because the General Assembly will begin a new session at the beginning of 2017, any legislation to change the state’s share of casino revenue will have to be reintroduced.
“Needless to say, we will continue to pursue this much needed legislation in January when the legislature returns,” McGlynn wrote in the SEC filing.