![]() ![]() ![]() Section 5: OPA Board Subject: Board Punts on Slots Msg# 527623
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I believe Ocean Downs can have as many as 2500 machines. My initial calculations were based on about $80,000 in profits per machine realized by the Harrington location. Dover and Wilmington realized $84,000 and $97,000 per machine respectively (this for the 12 months ending 11/30/07). You could certainly claim that Ocean City is a better location than Harrington, but I used the $80,000 to be conservative. $80,000 * 2500 machines = $200 million * 5.5% (local govt share) = $11 million Of the $11 million, 70% (to the County) = $7.7 million; 20% (OC) = $2.2 million and 10% (Berlin) $1.1 million. For the first few years as machines are installed, the local cuts will be less, however, they will soon progress to these estimates in my opinion.
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For reference, the above message is a reply to a message where: Worcester County will receive a percent of total income. The county keeps 70%, OC gets 20% and Berlin 10%. The Delaware comparison was based on their total income from approximately 2000 machines. Machines here are likely to produce more per machine. What this area has that few others have is that it is already a major destination location. At any rate, based on 2000 machines here making the same as the one in Delaware, the County share would be in the range of 10 to 12 million. 10% of that is 1.2 million -- EVERY year. The amount in the news release is based on early start up income as all 2000 or so machines will not go online immediately. IOW, the news release intentionally minimizes the potential income as a means to support the decision. The lack of good projections and activities happening out of the control of the County and State seem to be just one of the many problems in relying on something as variable and volatile as slots to fix budget deficits. The county share (excluding OC and Berlin) will be spent as decided by the Worcester County Commissioners. There is a Council created in the legislation, but it is purely advisory. The county makes the final decisions on where the money is spent, so long as the spending complies with those purposes stipulated in the bill. The bill is vague on how OC and Berlin income can be spent. My take is these entities will receive cash and make their own decisions without any Council advice. I'd also assume the money would have to be spent on items conforming with the bill. Now, as to OPA, I believe if OPA were to be granted a state mandated 10% share, the funds could legally be spent on our police department, if nothing else. As for the state saying NO to projects, that is not likely to happen. |