Delaware Latest State To Explore Sports Betting Expansion

• A report submitted to the Delaware legislature suggests the state expand online sports betting
• An approved house resolution called for the re-evaluation of Delaware’s sports betting framework
• The Internet Sports Lottery Legislative Working Group estimates $30.7 million in tax revenue over next five years with expansion

The first state to accept a legal, single-game sports bet in 2018 is looking to potentially expand sports betting options for its customers.

The Internet Sports Lottery Legislative Working Group submitted a report to the Delaware legislature with a recommendation to expand online sports betting in The First State. Currently, the Delaware Lottery has an exclusive contract with Rush Street Interactive to provide online sports betting (though it has yet to launch) in the state.

The submitted report suggests expanding online sports betting to include multiple online sports betting operators in the state.

Expansion to Multiple Operators

After a five month delay, members of the Internet Sports Lottery Legislative Working Group submitted their final recommendations for Delaware online sports betting.

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 approached Delaware could 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 was created through House Resolution 6 with an initial deadline of June 2023 to submit their report. After the group delayed their recommendations, the Delaware Lottery reached an agreement with Rush Street Interactive in August to be its sole online and retail sports betting operator.

Within its final recommendations, the group recommended that Delaware expand its online sports betting to include multiple operators, which would contradict with the lottery’s current contract with RSI.

RSI has yet to launch its online sports betting services in the state.

Multiple Operators Will Increase Revenue

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 estimate from Eilers & Krejcik. If Delaware transitions to a multiple operator system, the state could generate $30.7 million in sports betting tax revenue across its first five years, and $9 million per year after.

“It is quite clear that the absence of online sports wagering is detrimental to our revenue in Delaware when our surrounding states have online sports wagering. During our meetings, it was demonstrated that there have been many attempts to place online bets in Delaware. This is lost revenue for our state. It is also clear from our surrounding states that the use of multiple online operators creates a greater volume of wagering and online usage. It is our recommendation that online operators need to be tethered to our existing video lottery agents,” the group wrote in its final recommendations.

The recommendations will be considered by Delaware legislators during its upcoming session.