Delaware lawmakers are looking to expand the mobile sports betting industry in the state by introducing House Bill 365, which would allow casinos to partner with up to two online sportsbook operators for a fee of $500,000 for a five-year license. The bill aims to attract more online sports betting companies to Delaware and increase revenue for the state.
Currently, Delaware’s online sports betting industry is dominated by BetRivers, a platform run by Rush Street Interactive (RSI). The state has seen significant revenue from mobile sports betting, with January and February bringing in $3.4 million and $3.8 million, respectively. This is close to half of Delaware’s annual gross gambling revenue.
Legislators believe that expanding online sports betting will make Delaware more competitive with neighboring states like Pennsylvania and New Jersey, which allow multiple vendors and have seen growth in revenue. The proposed bill also incentivizes operators to offer promotions by deducting a percentage of monthly handle of bets from taxable revenue.
However, the bill has faced criticism from the state’s finance secretary, who believes it will reduce state revenues and exacerbate problem gambling. RSI officials, on the other hand, have praised the success of their online sports betting operation in Delaware, citing a significant increase in revenue compared to previous years.
Overall, the debate over expanding online sports betting in Delaware highlights the potential for increased revenue but also raises concerns about the impact on state finances and problem gambling. As the bill moves through the legislature, stakeholders will continue to evaluate the potential benefits and drawbacks of expanding the state’s mobile sports betting industry.
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