A report out of Delaware has stated that the future of Dover Downs could be grim. The article states that the operator of the racino has seen its stock price plummet and that the company is fighting for its life.
News of the situation comes via a report by delawareonline.com.
The article explains that the Dover Downs refinanced $42 million in debt this past September in order to cover the costs of casino expansion. The report also states that stock in the company once hovered around $20, but last week it hit a record low of 72 cents.
The piece goes on to state that company executives were told late last month that they have to get the stock price up over $1 in six months’ time or else run the risk of being de-listed by the New York Stock Exchange.
Some of the blame for the current financial state of Dover Downs is being pointed at the over saturation of brick and mortar casinos in the general geographic area. The racino is showing that it is not impervious to the same intense competition that has forced multiple casinos in Atlantic City to close up shop.
The report explains that there were 14 casinos in Dover Downs’ market in 1996. Fast forward to current day and there are in upwards of 30 direct competitors.
(With files from delawareonline.com)