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theMovement (68.91)

Delaware Senate Approves Sports Betting Yesterday....Who will benefit?

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May 13, 2009 – Comments (4) | RELATED TICKERS: DDE

I just read in USA Today that Delaware is 1 of only 4 states that is allowed to legalize sports betting.  The others are Oregon, Nevada, and Montana.  In other words, Delaware could end up being the gambling powerhouse of the East Coast.  Sounds crazy, but hey, government laws against sports betting prevent all 46 other states from doing it, so that is a pretty big moat.  In addition to that moat, there are only 3 places in Delaware that will be allowed to take sports wagers.  The vote did not pass the Delaware Senate initially and part of the changes that they made to the bill were that no new casinos could come in and have sports betting, it could only be the existing 3 casino/racetracks..... another legal moat.  The bill also allows for table games to be added to those 3 casinos.  Yesterday, 5/12, this bill PASSED the state Senate with a 17-2.  So the 3 casinos are Delaware Park, Harrington Raceway, and Dover Downs.  Only Dover Downs is a public company.  Anyone think that DDE is a good investment?  Any other companies that might benefit from this?

4 Comments – Post Your Own

#1) On May 13, 2009 at 11:28 AM, catoismymotor (< 20) wrote:

I'll benefit! Come one Springfield Isotopes!

I'll have to look at DDE. Thank you for the post.

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#2) On May 13, 2009 at 11:36 AM, catoismymotor (< 20) wrote:

I just took a look at DDE. From what I can see of them on fool.com I think they have a fair chance of outlasting this recession. I think the ability to add sports betting to its menu will certainly help with its bottom line. If you intend to add DDE to your real life portfolio I would do so as a long term hold, ten years plus. That should allow for this storm to pass and for it to start raking in the dough.

Best of luck to you.

Cato

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#3) On May 14, 2009 at 3:43 PM, catoismymotor (< 20) wrote:

Bueller? Bueller? Bueller?

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#4) On May 14, 2009 at 4:28 PM, theMovement (68.91) wrote:

Thanks Cato!  I'm looking at it from the long-term potential point of view as well and it's looking pretty good.  DDE is also in on a plan for a casino in Atlanta's "Underground." The city of Atlanta put a lot of money into the Underground entertainment area and so far it hasn't panned out, but adding an attraction like a $500 million Vegas-style hotel with video gambling terminals might do the trick and since the city is already invested in the Underground, I'd be willing to bet that they will do their part to continue efforts to make it a profitable destination. 

As for DDE downside, really the only thing is legalized slots in Maryland, which means a potential for decreased traffic in the southern DE casino.  I think the good definitely outweighs the bad in this one.  Very small cap company with sports betting moat and some projects that could be very profitable and management seems commited to managing costs and growing the business.  

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