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Sunday, October 5, 2003
Slot machines save day at Dover Downs in Delaware
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Nearly 400 miles from Scarborough is a place where the tradition of harness racing has never been stronger. But it wasn't that long ago that Dover Downs in Delaware faced the same problems as Scarborough Downs and Maine's other harness racing tracks. Cheaper and more accessible forms of gambling were becoming widespread, leaving breeders, riders and many others in the business to wonder if their pastime was on its last legs. In 1994 the Delaware Legislature voted in favor of making slot machines legal at racetracks in an effort to salvage the state's horse racing industry. Now Dover Downs is a major attraction in Delaware's capital city of more than 34,000. What draws the biggest busloads of visitors on weekends isn't the thoroughbred racing or the stock car racing that was added in 1986, but the 80,000-square-foot casino, featuring 2,000 video slot machines. Revenue from the slots at Dover and two other tracks pumps almost $200 million into the state's budget. And racing purses at the track have risen from $10,000 a night to up to $150,000. "If it wasn't for the VLTs (video lottery terminals), the racetracks would be closed today," said Sal DiMario, executive director of the Delaware Standardbred Owners Association. Mainers will be faced with a similar ballot question next month when they consider a proposal to allow video gambling machines at commercial harness racing tracks. If passed, the measure would permit the development of so-called "racinos" at the track in Scarborough and at Bangor Historic Raceway in Bangor. Scarborough voters will also consider a local referendum to overturn a zoning prohibition against the machines. Before the 1994 legislation to allow slots at the tracks, Dover Downs and the state's other harness racing venues were seeing steady declines in attendance. DiMario, who has worked in the industry for most of his life, including 10 years in Maine, said interest in harness racing has skyrocketed since Dover Downs became a racino. The key to the resurgence has been the increase in purse money for riders. "Purse money," DiMario said, "is the fuel that drives the industry." Total gross purses in Delaware were around $650,000 before slot machines were added. Now DiMario estimates purses are more than $35 million annually. In turn, better purses can stimulate the entire industry. To DiMario, "better purses means better horses, better horses means better racing, better racing means more fans." An owner or breeder may spend $20,000 on average to keep a horse healthy and in shape. That money goes to veterinarians, blacksmiths, trainers, groomers and all the way down to farmers who make hay to feed the horses. But while the benefits to racing are obvious, it's less clear whether local municipalities benefit from a racino. Delaware law allocates revenue from the slots according to a formula: 35 percent goes to the state, 48 percent is returned to the racetracks, 11 percent goes to purses and 6 percent to slot machine vendors. Part of the money is also allocated to gambling addiction programs. The money the state receives goes into the general fund, where it can be used for any number of projects. Dover officials disagree on the benefits and impact of the racino. Daniel Wolfensberger, Dover's director of economic development, said video slots have provided new jobs and stimulated development in the area. Dover Downs had fewer than 50 employees before the state allowed video slots. The track, resort and casino now employ more than 850 people. He also points to a number of new retailers, hotels and restaurants near Dover, which draw people from New Jersey, Maryland, Pennsylvania, New York, Virginia and Washington, D.C. But Delaware's legislation did not steer a percentage of slot machine revenue to municipalities. Dover licenses the video gambling machines annually at $110 per machine, or $220,000 a year. The city has also seen modest increases in the property tax base and revenue from its public utility company, which serves the racino. Still, Dover City Manager Tony DiPrima said economic benefits to the city have been negligible. "The customers who go to the slots stay at the slots . . . they're not necessarily going to visit shopping malls and go downtown," he said. While Dover Downs' resurgence may hold some insights for residents in Scarborough, Town Manager Ron Owens said the two towns have very few parallels. Last year, Owens and DiPrima discussed the impact video slots had on Dover and the possible implications for Scarborough. He noted that Dover Downs also features a stock car racing track and has added a 232-room hotel and conference center, restaurants and other amenities to attract people. "The difference with the track here is it's by itself, isolated," Owens said. "It's not likely to provide any major benefit to the town above any sharing formula we could work out."
Beth Murphy, staff researcher, contributed to this story. Staff Writer Justin Ellis can be contacted at 791-6380 or at:
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