Delaware Pushes for More iGaming Operators to Enhance Online Sports Betting Scene

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A ground-breaking legislation, which aims to free Delaware’s online sports betting scene from the stronghold of one single operator, has recently been rolled out in the First State. The proposal intriguingly suggests that the virtual sports betting market would considerably flourish if it invites more industry players.

Delaware’s nascent online sports betting sector is solely ruled by BetRivers, an iGaming platform of the Chicago-based Rush Street Gaming. While the state is one of the pioneers in permitting wagers on college and pro sports at physical outlets, it has only opened up its online sports betting domain in December last year. Interestingly, Delaware took a significant leap forward by partnering with the new iGaming and sportsbook master, BetRivers, in the summer just past.


BetRivers fortuitously ascended the throne earlier held by 888 Holdings, the erstwhile Delaware Lottery’s iGaming and sports betting operator. Under the newly tabled House Bill 365, state Reps. Franklin Cooke (D-District 16) and William Bush (D-District 29) are advocating for an end to BetRivers’ dominating role in online sports betting. These intrepid lawmakers propose to infuse new blood into the market by inviting other sportsbook firms to set up shop.

Proudly proclaiming the bill, Cooke stated, “The addition of online sports betting will usher in more revenue, which will be used to support programs for the treatment, education and assistance of compulsive gamblers and problem gambling.” The lawmakers ardently believe that the incursion of more online sportsbooks could augment the state’s annual benefit from online wagering by around $400,000.

Detailing the bill, HB 365 plans to extend permission to the state’s three physical casinos – Bally’s Dover Casino Resort, Delaware Park Casino, and Harrington Raceway & Casino. These establishments, currently operating slot-like video lottery terminals (VLTs) and live dealer table games on the Delaware Lottery’s behalf, could partner with two more third-party online sportsbooks, breaking their exclusive allegiance to BetRivers for their online sports betting operations.

The licence for each new sportsbook proposed under the bill would attract a cost of $500,000 for five years. The gross revenue accumulated would attract 18% tax, channelled to the lottery. A further 1.5% of the net sports betting win will benefit horse racing purses, while the remaining 80.5% would be split between the sportsbook and casino. BetRivers, meanwhile, preserves its monopoly over retail sports betting in three casinos and myriad outlets offering wagering kiosks.

Currently, the bill is redirected to the House Administration Committee for a preliminary review. Delaware, with barely a million residents accounting for its 46th rank in U.S. population terms, may receive a lukewarm interest from sportsbooks considering the hefty annual fee of $100,000 and nearly 20% tax on gross revenue if the bill passes.

The proposed 19.5% tax on online sports betting revenue outpaces the tax rates in states where online sportsbooks are already permitted. This rate exceeds what online sportsbook revenue is taxed in several states, including Arizona, Colorado, Connecticut, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Michigan, Nevada, New Jersey, Ohio, Virginia, Washington, D.C., West Virginia, and Wyoming.

Despite this, the fact unmissable is the remarkable performance of BetRivers’ since its launch in December. The operator has shown a strong start, and the online casino operation’s iGaming revenue has seen a significant leap compared to 888’s time. Within the initial two full months of operations, around $30.8 million in bets were placed, grossing up to $2.34 million in revenue. After the state had its slice of the pie, BetRivers netted nearly $929,000 in two months.

Worth noting is that Delaware, being a seasonal state, witnesses a surge of visitors during the summer months given its expansive shoreline that stretches beyond 380 miles. This unique trait of Delaware has the potential to fuel potential growth in the dynamics of the state’s sports betting industry.