Delaware Sports Betting Expansion Stalls in Legislature

Lawmakers concluded this year’s session without advancing the proposed bill to broaden the Delaware online sports betting market, despite a legislative recommendation.

Details of House Bill 365

The initiative aimed to expand the market beyond the current structure, which is solely operated through the Delaware Lottery in partnership with Rush Street Interactive’s BetRivers.

BetRivers is currently the only operator in the market, having launched its online sportsbook in December following the initial introduction of in-person sports betting in 2018.

Introduced by Representative William Bush in April, House Bill 365 sought to establish a competitive mobile sports wagering market under the oversight of the state lottery.

The bill proposed a significant initial licensing fee of $500,000 for a five-year period and set an 18% tax rate on sports betting revenue.

Additionally, it allocated 1.5% of the revenue to support the state’s horse racing purses. The bill also proposed linking market access to Delaware’s three casinos, allowing each to partner with up to two sports betting operators.

Industry Support and Legislative Inaction

The bill garnered backing from major industry players, including BetMGM, DraftKings, and FanDuel, who expressed support during a legislative hearing.

However, despite this industry support and the clear framework laid out in the bill, the legislature adjourned without bringing the proposal to a vote, leaving the future of expanded sports betting in Delaware uncertain.