Maryland Slots To Affect Delaware Racetrack Slots DOVER, DE (wypr) - Over more than a decade, Delaware grew dependent on its regional monopoly in slot machine gambling. But West Virginia and Pennsylvania have already cut into the action. If voters decide Tuesday that Maryland should join in, Delaware's slots take could shrink by almost half. So, what to do? Can Delaware up the ante? WYPR's Karen Hosler reports from Dover Downs.

At a quarter past noon on a rainy Tuesday, the vast expanse of video lottery terminals at Dover Downs Hotel, Casino and Harness Race Track offer a sensory shock. All low-colored lights, overhead music and the siren call of computer generated hucksters.

The former one-armed bandits are limbless, they deal in paper money now and chits. The sound of coins dropping into a payout chute is a taped recording. But for many Dover visitors, like David and Judy Heim of Pennsylvania, slots remain the game of choice and offer a great form of entertainment.

"We're not gamblers by any stretch of the imagination. They would go broke if they had to depend on us. "

"It's just kind of a nice day out and stuff."

Delaware has benefited for more than a decade from a regional monopoly on slots that is threatened, if Maryland voters decide on Tuesday to cut into the action. Two-thirds of Delaware's slots players live out of state, and some like Kay O'Carroll are more than willing to travel to new spots.

"I'm from Chesapeake, Virginia. I'll go anywhere, honey."

Trouble is, Delaware has grown dependent on the slots revenue. When combined with extra money, the state earns by creating a favorable climate for corporate business, contributions from out-of-staters make up nearly 40-percent of the state budget. They pay for schools, police and public works projects. Meanwhile, Delaware no sales tax.

Thomas Cook, the state's deputy finance secretary, modestly acknowledged the result.

"Delaware has been very efficient in being able to import revenues from out of state."

Delaware's take from slots has wildly exceeded expectations. The state will rake in about 222 million dollars this year from slots, by far the largest share of the gambling revenue that makes up six percent of the state budget. Mr. Cook estimates competition from Maryland slots could cut Delaware's take nearly in half.

So, Delaware is preparing to up the ante, says Wayne Lemons, director of the state lottery. The state legislature is being asked to approve gambling on sports events that thanks to a federal ban only three other distant states are allowed to offer.

"We do think it will give us an amenity that the other states surrounding us cannot have."

There are skeptics, though, who argue Delaware's gaming bonanza may be over. James L. Butkiewicz, a University of Delaware professor, was co-author of a study that showed sports betting wouldn't bring in nearly as much money as advocates hoped.

"If you are facing a loss of revenues, you have to be realistic about what alternatives there are to try and deal with the loss."

"They may have to look elsewhere for revenue and think seriously about cutting expenditures."

But Delaware officials have not lost their faith in the destination locations that slots have built; fancy casinos with a luxury hotel or golf course and other amenities that draw gamblers daily by the busload. Delaware's fear of competition seems more than justified, however, by Nancy Foster, a Dover Downs regular who is eager for a closer slots parlor in Maryland.

"If there was any way I could vote for it, I would. I don't understand why Virginia don't do it."

Looks like it may be even money on whether slots are a good bet.

I'm Karen Hosler, reporting from Dover, Delaware,: for 88.1, WYPR.

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