A $46 million proposal to assist Delaware casinos has been released by the Lottery Gaming & Study Commission and sent to legislative lawyers to be crafted into legislation.

Sen. Brian Pettyjohn, R-Georgtown, sits on the nine-person commission and was one of five members who voted for the proposal's release during a Jan. 22 meeting in Dover. He said he voted to release the plan so the full General Assembly can discuss it.

Pettyjohn said he takes exception to the idea that the Lottery Gaming & Study Commission has moved forward a proposal to bail out the state's casinos.

There's no other industry in the state where the state takes 60 percent of profits before any bills are paid, Pettyjohn said Jan. 27. He said the proposal would not give money to the casinos; it would reduce what the state would otherwise take away.

“There's a huge difference,” he said.

Introduced by Sen. Brian Bushweller, D-Dover, the proposal saves casinos $6 million by cutting the state's share of table game revenue. The state would pay an additional $3.3 million in video lottery vendor costs and eliminate an annual $3 million table game license fee. In addition, the state's horse racing industry would be given $3.5 million.

Two-thirds of the plan's proposed savings, up to $30 million a year, would come in the form of a 5 percent credit for both marketing and capital improvements. This provision would allow Delaware casinos to keep pace with casinos in other states.

Pettyjohn said there are hundreds, maybe even thousands, of people directly and indirectly employed because of the casinos, and that it was important to try and figure out a plan that was both affordable and appropriate.

“There's a lot more than just the people working at the casinos,” he said about the potential impact of the casinos failing.

Speaker of the House Rep. Pete Schwartzkopf, D-Rehoboth Beach, said he would vote against any legislation to come across the House floor with the current proposal. He said he was concerned about a $50 million hit to the state's revenue and what it could mean to services in other areas.

Schwartzkopf said he would be in favor of the the casinos exploring ways to consolidate debt with a lower interest rate, and he wants to know why the state wasn't looking at a way to loan the money to the casinos with a very low interest rate – something like 1 percent.

That way the casinos pay less interest, but the state doesn't lose its revenue, he said.

This is the second time in as many years the panel has recommended some form of aid to Delaware's casinos. Last year, the General Assembly passed Senate Bill 220, which saves the casinos about $10 million because the state will help pay slot machine vendor costs.

Sen. Ernie Lopez, R-Lewes, said it's concerning that the casinos have come back to the General Assembly asking for more money. He said he's looked at some of the recommendations from the commission, but the majority of his constituents are against any type of help for the casinos.

Lopez, who voted against last year's proposal, said he is going to keep an open mind on legislation that makes it to the Senate, but it's going to be a tough sell.