Delaware has long had an unusual relationship with sports betting. They were one of a handful of states grandfathered in when Congress banned sports wagers.
But Delaware never had major sports betting programs. Now it’s time to move up to big boy status.
The Delaware Lottery, which runs sports betting in the state, signed a deal with Rush Street Interactive (RSI) to introduce online sports betting for the first time and oversee the existing virtual casino casino games. The lottery, by state law, is required to operate those games “in a manner which produces the greatest income for the state.”
Rush Street Interactive replaces 888 Gaming, the only platform the state has used since the inception of online gambling in 2013.
Turns out, RSI and 888 were the only companies bidding for the service. The lottery will try and retain 888 until winter when they hope RSI can slide in and take over.
Digital casino games will continue to be offered at the three tracks in the state: Delaware Park, Bally’s Dover and Harrington Raceway and Casino.
RSI will be working with each casino over the coming months to design new user interfaces, one which will bear the casino branding. Games and betting odds will be alike at each casino. Online sports betting will be included as its own “tab” in each of the casino’s sites.
Lawmakers had misgivings about the online sportsbook, one that was too restrictive and turned off leading companies like FanDuel and DraftKings.
“Knowing that there is a high demand from our customers and their constituents, and not just the four legislators, but up and down the state, in consultation, we felt that it was time to award the igaming contract to include sports,” Lottery Director Helene Keeley told the News-Journal from Wilmington.
Legislators can pass a law that changes the dynamics.
Until the recent deal, the lottery resisted the change to avoid hurting parlay cards available throughout the state. Parlays require several outcomes to come up for the bettor to win, making them more profitable for the state than individual game or prop bets registered at casinos or online.
But when Maryland launched sports betting online, Delaware had little choice but to act.
Some lawmakers in the working group endorsed a competitive system by awarding contracts to multiple sports betting vendors that would market directly to consumers.
“People of a certain age demographic aren’t raised to go to casinos, they’re raised on everything mobile,” Rep. Michael Smith said in a June working group meeting. “Right now, they’re in the market, just not in the state of Delaware.”
The contract with RSI runs for five years. It includes five one-year extensions. It’s the same length as Delaware’s first agreement with 888 in which Delaware maxed out on extensions.
RSI is in seven iGaming markets, according to its website.
