Some Delaware lawmakers are seeking to open up the state’s online sports betting business.
As it stands now, Delaware law allows for a single operator – currently BetRivers, after a five-year stint with 888 – to partner with the state’s three casinos.
Under House Bill 365, introduced by Democrats Reps. Frank Cooke and William Bush and co-sponsored across the aisle by Republican Rep. Michael Smith, each of the state’s three video lottery operators would be allowed to partner with up to two online sportsbooks.
“It’s important that Delaware remains competitive and responsive to the preferences of its residents,” Rep. Bush told Delaware Business Now. “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.”
Operators would pay an 18% tax on adjusted gross receipts. At least $400,000 or 3.5% (whichever is greater) of the tax collected will be earmarked to the Division of Substance Abuse and Mental Health for problem gambling programs, with the remaining balance going to the State Lottery Fund.
“Regardless of whether we’re talking about consumer products or sportsbooks, the consumer benefits from healthy competition in the marketplace,” Sen. Spiros Mantzavinos, chair of the Senate Banking, Business, Insurance & Technology Committee told Delaware Business Now. “By creating a regulatory structure that allows our casinos to partner with multiple sportsbooks, we can better ensure legal gaming sites are providing consumers with the best value.”
The bill has been assigned to the House Administration Committee for consideration.