Delaware Lawmakers Propose Bill to Expand Mobile Sports Betting

Developed with insights from the bipartisan Internet Sports Lottery Legislative Working Group formed in 2023, this bill aims to diversify the mobile sports wagering options available in Delaware by enabling casinos to collaborate with multiple sportsbooks.

Boosting Competition and State Revenue

The primary goal of HB-365 is to invigorate the mobile sports betting market by increasing competition among providers, which in turn is expected to enhance consumer choice and improve state revenues. Proponents of the bill, including its sponsors, emphasize the potential economic benefits that expanded sports betting could bring to the state.

Representative Cooke highlighted a crucial feature of the bill: the allocation of funds to address problem gambling. According to the proposal, an estimated $400,000, or 3.5% of the processed revenue from sports betting would be directed towards programs focused on the treatment, education, and assistance of compulsive gamblers.

Licensing and Revenue Allocation

The bill outlines specific financial obligations for licensed internet sports lottery operators, including a $500,000 fee for a five-year license.

Additionally, operators are required to contribute 18% of their monthly adjusted gross sports lottery receipts to the Lottery Office. Another 1.5% of monthly proceeds are designated for allocation under the Delaware Thoroughbred Racing Commission or Delaware Harness Racing Commission, ensuring that the sports betting expansion also supports local horse racing industries.

Following its introduction, HB-365 has been assigned to the House Administration Committee. A hearing is expected to take place within the next twelve legislative days as per the General Assembly’s schedule. This upcoming session will provide a platform for further discussion and refinement of the bill before it potentially moves forward in the legislative process.