Delaware Sports Betting Monopoly Will Remain in Place

Delaware State University Hornets forward Wesley Oba (15) braces for a fall as University of Delaware Blue Hens guard Jalun Trent (2) moves the ball during the annual men’s basketball game at DSU’s Memorial Hall in Dover, Wednesday, Nov. 15, 2023. The Hens won 78-67. © Benjamin Chambers/Delaware News Journal / USA TODAY NETWORK

• A bill to expand online sports betting in Delaware was not approved prior to the legislative session adjournment on June 30
• The bill would have opened up the state to six total online sports betting operators
• BetRivers will remain as the only online sports betting operator through a partnership with the Delaware lottery

BetRivers will remain as the only sports betting operator in Delaware for the time being.

Despite a legislative report supporting the expansion of Delaware’s online sports betting offerings, a bill to allow several additional operators in the state was not approved prior to the legislative session adjourning on June 30.

Rep. Franklin D. Cooke’s (D-16) bill, HB 365, would have allowed each of the three Delaware casinos to partner with up to two online sports betting operators.

Sports Betting Monopoly Remains

Rush Street Interactive’s (RSI) exclusive contract with the Delaware Lottery to be the only sports betting and iGaming operator in Delaware will remain. It reached the agreement last August and took nearly six months to launch in the state.

Delaware launched retail sports betting in 2018, but BetRivers did not launch in the state until December 27, 2023.

Cooke’s bill attempted to open Delaware up to several online sports betting operators, with license holders paying a $500,000 fee for a five-year term in the state. His bill set a sports betting tax rate at 18% of the operator’s monthly adjusted gross sports betting receipts.

If the legislation had been approved, each of Delaware’s three casinos would have been able to partner with up to two online sports betting operators. The eligible casinos were as follows:

• Bally’s Dover Casino Resort
• Casino at Delaware Park
• Harrington Raceway & Casino

Cooke’s bill also required operators to contributed 1.5% of their monthly adjusted gross sports betting receipts to fund horse racing purses in the state.

The last time the bill received a vote was in May, as advanced out of the administration committee by 4-0-1 vote. It was sent to the House Appropriations Committee, but never moved forward.

State Report Suggested Expansion

The bill was backed by report submitted to the legislature last year. The Internet Sports Lottery Legislative Working Group submitted a report to the Delaware legislature this past December with a recommendation to expand online sports betting in The First State

Members of the Internet Sports Lottery Legislative Working Group pointed to the online sports betting models of neighboring states such as Maryland, Pennsylvania, and New Jersey as potential approaches Delaware should consider. All three states feature online sports betting with multiple online sports betting operators that could provide Delaware with a “more competitive and economically thriving sports wagering market.”

The group suggested the following recommendations to the Delaware legislature:

• Delaware needs to have an online sport lottery
• Delaware needs to have multiple online sports operators
• Delaware should provide for a tethered model with existing video lottery agents
• Delaware should protect the horse racing industry and purse contributions
• Delaware should provide additional resources for problem gambling

Within the recommendations, the group included revenue estimates from Eilers & Krejcik. Delaware could have generated $30.7 million in sports betting tax revenue across its first five years, and $9 million per year after.

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