Delaware State Representatives Franklin Cooke and William Bush are sponsoring a bill to increase the available online sports wagering opportunities in the state. The genesis of HB 365 came from a task force created last year known as the Internet Sports Lottery Legislative Working Group.
The legislation permitted the state casinos to partner with multiple sportsbooks, an allowance that backers claim would be a boon for market competition and revenue for the state. The bill sanctions two online skins, or digital partners, for each of the state’s three casinos. BetRivers, owned by Rush Street Interactive, became the only source of digital sports betting in the state after signing a multi-year contract in 2023.
“The addition of online sports betting means more revenue will benefit programs for the treatment, education and assistance of compulsive gamblers and problem gambling,” Cooke told WBOC-TV. “We’re talking about $400,000 or 3.5 percent, returned to the state for funding these programs. Those dollars will go a long way.”
Digital sports betting operators must pay $500,000 for a five-year license, with proceeds earmarked for the general fund. In addition, they would pay an 18 percent tax. An additional 1.5 percent a month goes to the Delaware Thoroughbred Racing Commission or Delaware Harness Racing Commission.
The bill has been assigned to the House Administration Committee.
HB 365 offers incentives to operators to issue promotions to acquire bettors.
Sportsbooks could deduct 2.5 percent of monthly handle from taxable revenue through June 2025. The percentage falls to 2 percent from July 2025 moving forward.
The percentage deducted may be raised by the director of the Delaware Lottery at his/her discretion.
The push to upgrade sports betting surfaced last January when the lottery unveiled an RFP for an online gaming partner that could offer online sports betting. The House approved House Resolution 6 later authorizing a study group for sports betting. A report in December 2023 supported the advantage of more sportsbooks.
The RFP did not qualify as a success, attracting interest from 888 to join Rush Street. Cooke said a lack of interest from names like DraftKings and FanDuel could be a concern.
