Delaware's Gambling Market Shows Growth and Legislative Advances

The bill incorporates suggestions from a legislative research team, greenlit last year, which released its results just before the launch of Delaware Lottery’s online sportsbook.

The key finding from the study group indicates that expanding and fostering competition in the online market could significantly boost state tax revenue. Projections show a substantial increase in the market handle, reaching $186.1m (£146.6m/€171.9m) in FY25 and $223.5m in FY26, with further growth of 5.0% anticipated in 2027.

To provide context, FY23 saw a handle of $65.3m, including only four months of one online operator, while player spending in FY22, before online betting, stood at $19.5m.

The proposed bill envisages partnerships between each Delaware racetrack and up to two betting operators, potentially adding six new online operators to the current market. Licensing fees are set at $500,000 per operator for a five-year term, accompanied by an 18% tax rate on sports betting revenue. Additionally, there are provisions for revenue charges benefiting the state’s horse racing industry.

At the moment, there is no specified commencement date for the bill’s implementation in the event of approval.

April showcased robust growth in Delaware’s sports betting sector, with total spending reaching $15.5 million, marking a substantial 400.0% increase year-on-year. However, there was an 18.0% decline from March’s figures. Despite this, revenue surged to $1.0 million, a remarkable 171.0% jump compared to the same period last year.

Delaware Park emerged as the market leader in sports betting revenue, with significant contributions from Harrington Raceway and Bally’s Dover. Retail bets across the state also added to the overall revenue figures.

Thriving iGaming Sector

Delaware’s iGaming sector also thrived in April, generating total revenue of $4.4 million, representing an impressive 238.5% increase year-on-year. The sector’s performance was driven by online slots and table games, with Delaware Park, Harrington Raceway, and Bally’s Dover leading in revenue generation.

The introduction of new online casino platforms in January, coupled with the online sportsbook, played a pivotal role in driving growth in the iGaming sector. Player engagement remained strong, contributing to the overall positive trends observed in Delaware’s gambling landscape.

The progression of House Bill 365 signifies Delaware’s loyalty to fostering a competitive and innovative gambling market. The bill’s emphasis on market expansion and revenue growth aligns with industry recommendations and legislative goals.

As Delaware continues to navigate regulatory changes and market dynamics, stakeholders anticipate further advancements in the gambling landscape. The synergy between legislative initiatives and market performance bodes well for continued growth and innovation in the state’s gambling sector.

Source:

”Delaware sports betting growth continues as expansion bill progresses”, iGamingBusiness, May 24, 2024.