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Delaware racinos losing customers to competition

30 April 2007

DELAWARE – As reported by the Delaware News Journal: "The slot machines have been good to Delaware Park regular Kathleen Cimakasky over the years. Like many other players, she also is impressed with the amenities of the sparkling new Harrah's Chester casino, which is a shorter jaunt from her home in Brookhaven, Pa.

"…These are good times -- but scary times -- for the owners of the state's three racetrack slots parlors. Ongoing expansions are raising new potential for revenue, even as the threat of out-of-state competition is heightening uncertainty.

"A recent report gauging customer satisfaction with the three Delaware 'racinos' points to signs of rising discontent just as competition is gathering strength across the border in Pennsylvania, and possibly one day in Maryland.

"The study, commissioned by the Delaware Lottery office late last year, found that more regular players here are complaining about winnings, despite rules that guarantee a certain percentage of overall payouts.

"…Delaware Park in Stanton -- the casino closest to the new rival in Chester, Pa. -- is facing the highest level of dissatisfaction and suspicion.

"…To bolster those positive perceptions, Delaware's casinos have invested millions over the past two years, even as fewer slots players bet on horse racing and revenue forecasts drop.

"…In September, the Delaware Economic and Financial Advisory Council said the state's take from slot machines is expected to drop more rapidly this year and next because of the Chester racino -- slots revenue is expected to fall $10 million this year, up from earlier estimates of $5 million, and by $35 million next year…"

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