Delaware Takes First Sports Bets

Delaware was the first state to begin sports betting after the U.S. Supreme Court struck down a federal ban and beating New Jersey, which had actually made the challenge before the high court. Delaware Governor John Carney (l.) made the first bet—winning with the Phillies over the Cubs. A PASPA exemption meant the state already had sports betting laws and regulations on the books and could launch sports betting June 5. The state took in $322,000 on the first day of betting.

Delaware Takes First Sports Bets

Delaware saw its three racinos take in $322,135 on the first day of full sports betting as it became the first state to take advantage of the U.S. Supreme Court striking down a federal ban under the former Professional and Amateur Sports Protection Act.

Delaware was able to get sports books up and running—beating New Jersey, which had made the challenge to the Professional and Amateur Sports Protection Act (PASPA)—due to its previous exemption under the law. PASPA grandfathered four states that had a form of sports betting when the bill went into effect in 1992. Delaware had previously allowed parlay betting in the 1970s.

Delaware has had a re-launched parlay form of betting on the NFL in place through its state lottery since 2009—Delaware actually lost its own challenge to PASPA to offer full sports betting at the time—and its three racinos had previously built sports books in preparation for the federal ban being lifted. With sports betting laws already on the books and an infrastructure in place, the state was able to move quickly in implementing full sports betting.

For now, sports betting is available at Dover Downs, Delaware Park and Harrington Raceway & Casino. Bets were taken on MLB, NBA, NFL and the World Cup. Other sports that eventually will be offered include NHL, golf and college football. Bars and restaurants in Delaware were also permitted to offer the NFL parlay bets, but it’s unclear if they’ll be included in full sports betting.

Gamblers are allowed to bet up to $1,000. Once a bet exceeds that guideline, a bettor has to wait until the amount is approved by the administrating company—in Delaware that is William Hill—according to Vernon Kirk, the director of the Delaware Lottery.

Delaware Governor John Carney made the first wager betting $10 on the Philadelphia Phillies to beat the Chicago Cubs. The Phillies won 6-1.

“For us, it’s really an enhancement of our tourism industry,” Carney told ESPN. “It will attract a lot of visitors to our state, particularly at this time of year, during the summer, coming to our beautiful beaches south of here. They come here and stop at the casinos and do slot machine and table gaming. This will be another opportunity for them.”

While Delaware gets the distinction of being the first state to offer full sports betting—after Nevada, of course, which has had sports books for decades—casino owners in the state cautioned against expecting a major windfall for the state. Officials pointed out that neighboring New Jersey will be close behind in offering sports bets and other surrounding states such as Pennsylvania will begin offering sports betting soon after that.

“We don’t think there’s going to be a windfall for the state of Delaware,” Dover Downs Casino CEO Ed Sutor told WHYY public television. Sutor said. “We’ll take it, because it’s going to be available, but I don’t think anyone should expect a big windfall because other states all around us are going to be having the same thing.”

In 2017, gamblers wagered $3.6 million on NFL games through the parlay system run by the state lottery. The state paid out $1.3 million in winnings to bettors and collected about $2 million in net proceeds, according to figures cited by WHYY.

Sutor pointed out that in 2017, Dover Downs lost about $1 million for the year and he doubted sports wagering can turn the tide.

The state’s three casinos have been pushing for a reduction in taxes on gambling revenue from 29.4 percent on table games. A bill to cut that rate to 15.5 percent is currently in the state legislature. Another bill would reduce taxes on slot revenue 2 percent, according to WHYY.

However, some legislators have already said the start of sports betting may mean the relief is no longer needed. Delaware’s Speaker of the House Pete Schwartzkopf told Delaware Online that he will be discussing with casinos officials and fellow legislators whether to reduce the $20 million package.

“At $20 million, I don’t think we should be doing that,” Schwartzkopf said. “Sports betting is a game changer when it comes to relief for the casinos.”

Still, the real test for any sports book will be when the NFL season begins in September.

“Obviously the key is going to be the football season because the bulk of betting in America is on football,” Delaware Finance Secretary Rick Geisenberger told the Associated Press. “We’ll learn a little bit in June and July, but we’ll learn a lot more in September.”