By
Lisa Spencer
Senior Editor Updated: 24 April 2024
Lisa Spencer Senior Editor
As a Senior Editor at Betting.US, Lisa Spencer is a valuable member of our expert team. With a Master’s degree in Applied Mathematics, Lisa is adept in gambling theory and analyzing odds. She contributes by writing online sportsbook reviews and finding competitive markets to help our readers make an informed choice.
According to recent reports, Delaware could be in line to expand its online sports betting market. Legislation that was recently introduced in the state aims to diversify the state’s online sports betting scene beyond just a single operator.
The rollout of online sports betting in Delaware began last December, and this was a huge expansion from the state’s previous focus on in-person betting at retail locations for both college and professional sports. The shift to online betting came when the state struck a deal with 888 Holdings. They have since been replaced by Rush Street Gaming’s BetRivers.
House Bill 365, presented by state Representatives Franklin Cooke and William Bush, proposes to put an end to BetRivers’ current monopoly on online sports betting by allowing other sportsbook companies to enter the market. Cooke stated:
The addition of online sports betting in the First State means additional revenue will benefit programs for the treatment, education, and assistance of compulsive gamblers and problem gambling.
The two believe that allowing additional online sportsbooks could boost the state’s annual revenue from internet wagering by an estimated $400,000.
Under HB 365, the state’s three brick-and-mortar casinos, Bally’s Dover Casino Resort, Delaware Park Casino, and Harrington Raceway & Casino, would be allowed to form partnerships with two additional third-party online sportsbooks.
At present, these casinos, which manage video lottery terminals and live dealer table games on behalf of the Delaware Lottery, are exclusively tied to BetRivers for online sports betting operations.
Each online sportsbook license would carry a price tag of $500,000 for a five-year term. Gross revenue generated would be subject to an 18 percent tax, with these funds earmarked for the lottery.
Also, 1.5 percent of the net sports betting win would be allocated to horse racing funds, while the remaining 80.5 percent would be split between the online sportsbook and the respective casino.
While BetRivers would maintain its monopoly on retail sports betting at the state’s three casinos and various retail locations with betting kiosks, the proposed legislation opens up the online market to increased competition.
HB 365 is currently under review by the House Administration Committee for an initial assessment. However, the bill may face a range of potential challenges, according to reports. Data shows that Delaware has a modest population of just one million residents, ranking it 46th in the nation.
This has resulted in concerns that the proposed annual fee of $100,000, coupled with the nearly 20 percent tax on gross revenue, could result in a lack of interest from other sports betting operators. In turn, this could lead to difficulties in finding other operators who wish to enter the small Delaware online sports betting market.
The suggested 19.5 percent effective tax rate on online sports betting revenue is a lot higher than the tax rates imposed by many other states where online sportsbooks are allowed to operate, which could also lead to a lack of interest from operators.
ComeOn Group Launches Sportsbook in OntarioRead Article
Blake RobertsNovember 22, 2024
PointsBet Denies Takeover Discussions With Overseas CompanyRead Article
Amelia WalkerNovember 20, 2024
Can Conor Benn Rise Again After His Doping Suspension is Lifted?Read ArticleBlake RobertsNovember 18, 2024