Delaware launched mobile sports betting only six months ago but lawmakers are already discussing adding more sports betting operators to the mix instead of having it under the sole control of the state’s only provider, BetRivers.
Opening Up the Marketplace
In April, Representative Frank Cooke and Representative William Bush sponsored House Bill 365, which would expand Delaware’s sports betting bill to allow multiple online sports betting operators. The impetus for the bill is based on a report submitted by the Internet Sports Lottery Legislative Working Group, a bipartisan committee.
The group was tasked with studying the topic of multiple sports betting platforms compared to the monopoly BetRivers currently enjoys. The study found more operators would boost revenues for the state.
At a hearing last week, the House Administration Committee decided to advance the bill to the House Appropriations Committee where it will receive further consideration. During the hearing, the Sports Betting Alliance consisting of representatives from DraftKings, FanDuel and BetMGM spoke in favor of the bill.
Representative Bush, a co-sponsor of the bill, previously stated, “It’s important that Delaware remains competitive and responsive to the preferences of its residents. By providing Delawareans with a larger mobile sports wagering market, similar to those thriving in neighboring states, we can level the playing field and bring in a new source of revenue for our state.”
In addition to expanding the number of operators, other highlights of the bill state the following:
- Each licensee would pay a $500,000 fee for a five-year term in the state.
- The sports betting tax rate would stand at 18% of the operator’s monthly adjusted gross sports betting revenues.
- A fee of 1.5% of the operator’s monthly adjusted gross sports betting revenues would be earmarked for horse racing purses in the state.
- The three Delaware casinos including Bally’s Dover Casino Resort, Casino at Delaware Park, and Harrington Raceway & Casino would be allowed to partner with up to two mobile sportsbooks and share in those revenues.
The study concludes Delaware would receive $30.7 million in sports betting tax revenue in its first five years, and $9 million per year thereafter.
Rebuttal
Rush Street Interactive (RSI), the parent company of BetRivers, is not enamored with the prospect of ceding control of its mobile sports betting monopoly in the state and neither is its partner, the Delaware Lottery. Profits have skyrocketed in the iGaming sector since BetRivers replaced 888 Holdings and it was BetRivers that independently launched mobile sports betting in December 2023.
Delaware Lottery Director Helene Keeley has been vocal in her support for BetRivers continuing as the sole mobile sports betting operator in the state.
“It’s something that the customers wanted, and it’s something the casinos wanted. They wanted that one platform where a customer could say okay let me place a bet because this is what I want to do, but let me go back over and play some blackjack and that’s exactly what they have the ability to do on one app,” said Keeley.
