Internet, Mobile & Sports Betting
The Delaware state House on Tuesday approved a bill authorizing online betting and more venues for sports wagering and other gambling.
Delaware moves forward with online, but a population of only 1 million, will it be a test base
The bill, which was approved on 29-to-8 vote and now goes to the Senate, also authorizes betting on NFL games in at least 20 more sites other than the casinos.
Administration officials say revenue generated from the expanded gambling opportunities would allow them to eliminate $4 million in slot machine fees paid by the casinos and cut their annual table game fees from $6.75 million to $3 million.
The casinos would pledge in return to spend an amount equal to those cuts on traditional business expenses such as marketing, capital improvements and debt reduction.
Rep. John Viola, D-Newark, chief House sponsor of the bill, said it represents “the next logical step” in the evolution of Delaware’s gambling industry.
Viola noted that other states are looking to implement online gambling in the wake of a U.S. Justice Department determination late last year that federal law does not preclude in-state betting online, as long as it does not involve gambling on sports.
Ed Sutor, CEO of Dover Downs Inc., said the proposed changes could help prop up Delaware’s gambling industry, which has seen increased competition from neighboring states in recent years. But Sutor said he doesn’t expect that the bill will generate a lot of new jobs.
“The industry is taking a licking right now with the economy, with the additional competition,” he said. “I would say this is not a jobs generator, this is a jobs preserver.”
House members passed the bill after adding an amendment allocating a share of the revenue from the additional sports lottery sites to harness racing purses at the state’s three racetrack casinos. A similar provision for thoroughbred racing purses already had been inserted into the bill at the request of the thoroughbred industry, administration officials said.
With Delaware having only around 1 million residents, the online industry will not get overly excited with this news, however reviewing the progress and implementation of online will be closely watched by many other States trying to legislate for online gambling.
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