FIRST STATE POLITICS

Lawmaker says casinos 'raped' by state taxes

Jon Offredo
The News Journal

At a candidate forum Rep. Steve Smyk, a Milton Republican, said the state's three casinos have been "raped" by the state of Delaware.

"Let me explain a little something about casinos. The casinos have to pay their fees and have to pay their taxes like any other business. But the casinos have also been raped by the state of Delaware to the tune of 43.5 percent of their earnings," said Smyk in a recording of the forum. "Who can survive in a business like that?"

The lawmaker's remarks were included in a campaign video supporting Smyk's general election opponent, Democrat Marie Mayor. The video was posted on YouTube and has been viewed 244 times.

Rep. Steve Smyk

Smyk made the comment as he defended his vote on the casino bailout legislation passed by lawmakers during the last session. The measure gave nearly $10 million to the state's three ailing casinos, who say they have been hard hit by a high tax rate and out-of-state competition.

In a statement on Tuesday, Smyk, a former state trooper, said the Democratic Party is using his comments as a way of supporting his opponent.

"It's partisan, negative campaigning at its worst and the people of the 20th District deserve better," he said in the statement.

The comments, first posted on political blog, Delaware Liberal, prompted outrage over his choice of words.

Casino owners have long said the percentage of their earnings taken by the state is too high. The state began taking a larger cut of casino revenue during the 2008 financial crisis, but never reverted that rate back.

Lawmakers and state officials have already began talks about the latest attempt to find a long-term solution for the state's casinos.

In response to his comments, the National Organization for Women Delaware had posted an online petition to Change.org asking for Smyk to apologize. So far, 32 people have supported the petition.

Contact Jon Offredo at (302) 678-4271, on Twitter @jonoffredo or at joffredo@delawareonline.com.