Georgetown Casino Sought

By Joe Rogalsky, Delaware State News - 10 March, 2004

GEORGETOWN - Supporters of a plan to bring a casino with 2,500 slot machines and a 150-room hotel to the intersection of Del. 404 and U.S. 113 will make their case Wednesday to the Georgetown Town Council.

Dover attorney Constantine F. Malmberg III, who is representing a group hoping to develop the project, said the casino and hotel would sit on 75 acres next to the Wal-Mart on the southbound side of U.S. 113.

Mr. Malmberg said Wednesday's meeting is the development group's first step to win the town's approval. The town's planning and zoning commission, as well as the town council, must OK the site plan.

State law also needs to be changed because it only authorizes casinos at horse racing tracks at Delaware Park, Dover Downs and Harrington Raceway.

"This is a clean industry that brings in a lot of money, primarily from out-of-state consumers - what could be better?" asked Mr. Malmberg, who said the facility would create 600 jobs.

"The state gets a considerable share of the revenues. If I were a legislator, and this were my area, I would support it."

Many legislators and Gov. Ruth Ann Minner do not support expanding gambling beyond the three sites. Proposals to build a gaming barge on the Delaware River or open a casino on the Wilmington riverfront have not won support.

Rep. Joseph W. Booth, R-Georgetown, said his constituents do not seem receptive to more gaming. He said a recent survey showed 72 percent opposed allowing sports betting in Delaware.

"I don't think the people around here are excited about putting slots in their backyard," he said.

"Plus, you have growth and traffic issues. I think they have an uphill climb."

Senate President Pro Tempore Sen. Thurman G. Adams, D-Bridgeville, also represents the area and said many hurdles need to be cleared for the project to happen.

"I would think it would be difficult to get done," Sen. Adams said.

"You have to change the law for this to happen. (Wednesday's meeting) is just the first step in a long process"

Georgetown Mayor Ed Lester said he will abstain from voting on the plan because he represents the owners of the land who have agreed to sell it to Sussex Entertainment Enterprises LLC, the group wanting to build the casino and hotel.

He said the facility would benefit the town in several ways, including the impact fee it would have to pay, which would be used for the town's library and Boys & Girls Club. Three recent developments garnered the town $350,000, he said.

Mr. Malmberg said he is speaking with several legislators about sponsoring legislation allowing the Georgetown casino. The legislation would be offered as an amendment to a pending bill that would authorize a casino on the Wilmington riverfront.

Like the Wilmington proposal, 10 percent of the revenue from the Georgetown facility would fund scholarships for Delaware high school students and 3 percent would go to Georgetown government coffers.

Mr. Malmberg declined to name the investors in Sussex Entertainment Enterprises, except for Frank Fantini, president of Delaware Gaming Investments,

Mr. Fantini's company publishes the Gaming Morning Report, an electronic newsletter for investors and executives in the gaming industry.

He said the proposal is needed to keep Delaware competitive with nearby states considering gaming and would help the local economy.

"It's a form of entertainment that is very much in demand in Delaware and America," Mr. Fantini said.

"It is something that is doing very, very well. Over time, people will understand that this is a legitimate industry that deserves to grow."

Slots were authorized at three facilities in Delaware under a 1994 state law. Then-Gov. Thomas R. Carper, now a U.S. senator, opposed the plan but allowed the bill to become law without his signature.

A "perfect storm" existed, he said Monday, which allowed legalized gambling to win enough support.

The elements of the "perfect storm," Sen. Carper said, were a desire to preserve Delaware Park's open space, a need to provide a reliable revenue stream for the state fairgrounds in Harrington and interest in aiding the horse racing industry.

Such conditions, he said, have not materialized so far to help supporters of expanded gaming.

Source: News ZAP