Delmar casino in the works

A Wilmington developer’s announcement that he intends to build a gambling casino in southwestern Sussex County already is drawing criticism from at least one would-be competitor, the Dover Downs Hotel and Casino.

James Rostocki is awaiting a recommendation by a state legislative committee studying the feasibility of additional casinos in the First State before submitting a formal proposal to town and state officials.

Plans call for a casino complex with a hotel, a venue for conventions and entertainment, a restaurant and retail shopping that would sprawl over 131 acres within town limits. It would draw traffic from U.S. 13 and U.S. 50 in nearby Salisbury, Md., specifically prospective travelers to resorts such as Ocean City, Md., where a proposed slots gambling venue is proposed at the Ocean Downs Racetrack.

A Delmar casino also would compete with Delaware gaming’s Big Three: Dover Downs Hotel and Casino, which adjoins the Dover International Speedway that hosts two annual NASCAR race weekends; Harrington Raceway; and Delaware Park Racktrack and Slots in Stanton.

Rostocki’s proposal is one of at least two that have surfaced recently for casino gambling in Sussex County. In Millsboro, the Ocean Atlantic Agency Inc. of Rehoboth Beach has announced plans to add casinos at its proposed Del Pointe site, a 377-acre venue that also would include a family resort hotel, convention center, indoor water park, retail shops and more. While Del Pointe has been approved for harness racing, a legislative committee recommendation could decide whether the complex wins gambling.

Rep. Joe Booth, R-Georgetown,t is co-sponsor of House Bill 194 that, if approved by the legislature, would allow slots gambling at Del Pointe, a proposal that also has the established gambling casinos watching with criticism, said Ed Sutor, president and chief executive at Dover Downs.

“There are 800,000 people in the state of Delaware and three casinos; I don’t think we can handle more,” said Sutor, citing declining revenues for casino and horse racing industries overall. “We have a hard enough time competing with Pennsylvania, where casinos opened in 2007. The economy and competition is hurting business.”

Horsemen receive 10 percent of slots revenue at Delaware’s Big Three casinos, and casinos elsewhere in the state could mean fewer gamblers or horse betters at existing venues, Sutor said. “Horsemen don’t like it, either; they’ve said so publicly.”

Half the business at Dover Downs is from both of Maryland’s shores, and at least 10 percent of its business is from the Eastern Shore of Virginia and onto Norfolk and the Virginia Beach region, he said. Delaware casino operators already were braced for competition at Ocean Downs in Ocean City, which is among five venues in Maryland expected to launch slots gambling with newly signed state legislation.

“That’s too many,” Sutor said, adding that he recently learned of Rostocki’s proposal and similar others in the Wilmington area.

Rostocki said he recognizes the concerns, but adds that the Delmar location would add needed revenue and jobs, and as importantly, give tourists and other visitors good reason to visit southern Sussex County.

“Rightfully so, our proposal would be a concern,” Rostocki said Wednesday. “There is potential competition, but also it would bring new people to Delaware. We’re making rounds, talking to people.”

There have been discussions with property owner Charlie Cathell about accommodating drag- and- dirt-track race fans attending events at the adjacent Delaware Motorsports Complex in Delmar, Rostocki said. The casino and hotel could provide overnight accommodations and needed parking for race fans, he said. The complex includes U.S. 13 Dragway and Delaware International Speedway.

Cathell could not be reached Wednesday for comment, although Rostocki said Cathell’s reaction to his proposal was favorable. “He left the door open,” Rostocki said. “We have a fluid relationship.”

The car-racing element makes the Delmar casino venture unique because other casinos in the state, including the proposed Del Pointe, are paired with horse racing, Rostocki said.

Rostocki also said he is interested in attracting fans at the Ocean City Cruisin’ of cars for race events at the Motorsports complex.

“We’re not going to do horses,” he said. “Why not a new venue that would draw people from all over the country?”