The gaming industry in Delaware has been under severe strain for a number of years. The state government increased taxes on gaming companies to cope with budget shortfalls that ballooned as a result of the financial crisis. Meanwhile, neighboring states removed gaming license restrictions to increase their revenues, resulting in increased competition for Delaware casinos, the largest of which is Dover Downs Entertainment (NYSE:DDE).
The resulting declines in revenues and profits at Dover Downs have led to an extraordinary reduction in market value. The stock is down 90% from its 2009 highs, as casinos with fewer regulatory fees in neighboring states continue to open and eat into Dover's market share.
However, the stock is so beaten down that the company is now a bargain.Read more...
No comments:
Post a Comment