Our view: Delaware takes baby steps in moving toward online sports betting
For a sales-tax-free state that loves to find other revenue sources, Delaware has been slow out of the gate in climbing on the online sports betting bandwagon.
it comes despite the fact that the state was exempted from a sports betting ban that has since been lifted around the country.
In the past couple of years, Delaware TV watchers and radio listeners have been inundated with advertising for betting and gaming apps from behemoths like MGM and Caesars. More than a few First State bettors have made a quick trip across the state line to make a wager.
Pennsylvania, New Jersey and now Maryland have been battling it out with apps that limit online bet-making to those states and others thanks to geo-location features on mobile devices.
All three of the state’s racetrack casinos offer mobile gaming but not online sports betting. You have to make your way to the casino to do that. It is also true that the percentage of online sports betting revenues that make their way to the state treasury is chump change.
According to a recent Delaware Business Times piece (paywall), the reluctance is based on constitutional language and the mechanics of the Delaware State Lottery running the show.
Any sense of urgency for funds was reduced by the infusion of federal funds during and after the Covid-19 pandemic and a revenue system that (so far) has benefitted from the state’s income tax rate. The same is probably true with marijuana legalization.
As the Business Times noted, Delaware got around to issuing a request for proposals as contracts with the casinos for what is known as igaming expired. None of this will be in time for windfalls from the Eagles trip to the Super Bowl, not to mention the 76ers, Final Four, etc.
Delaware Public Media last week looked at the issue, interviewing an ESPN reporter who covers the online betting industry. He noted that the state is losing out by not getting on the betting bandwagon. At the same time, the state’s return on investment will be held down by the costs of setting up online betting.
the state’s take for both the casino and the state will be limited by a population that is on a good day one-twelfth Pennsylvania’s number. In the meantime, Atlantic City casinos seemed to benefit from igaming revenues, despite the possibility that mobile betting might keep some away from tables, slots, and sports books.
Speaking of occasional bets, the PowerBall jackpot is nearing a record. I guess it’s time to get in line and help the state treasury. – Doug Rainey, chief content officer.
