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Delaware’s sports betting scene gets forgotten, but it really shouldn’t — not when it’s been one of the most unique in the country.
For starters, this was the first state to legalize sports betting after the Supreme Court’s landmark ruling in 2018. However, it didn’t fully launch the industry until January 2024. Yes, really.
Not only that, but the state has only one licensed mobile betting app — BetRivers. They’ve taken a unique approach in having a monopolized industry after the state lottery struck a deal with Rush Street Interactive, the parent company of BetRivers.
However, that monopoly is being threatened by a new bill floating around the state’s House. Nothing is official, but this bill could dramatically change the legal sports gambling industry inside the state. Keep on reading and we’ll tell you all about it!
Meet House Bill 365
House Bill 365 cleared its first committee hurdle this month. It still has a ways to go, but there’s been early progress. If passed, the bill would open up the market to more competition and give Delaware’s three casinos the power to partner with two operators each. That means the state could soon have up to six online sportsbooks — not just BetRivers.
The bill is based on the findings of a legislative study group formed last year. That group, led by Rep. Frank Cooke, concluded that Delaware would benefit from a more competitive marketplace. As it stands, only a select few states, like Oregon and New Hampshire, monopolize their sports betting industry.
But again, this has been by design from the get-go. Back in the fall of 2023, the Delaware Lottery issued a request for proposals (RFP) to find a new partner for its online sports betting platform. Only two companies responded: BetRivers and 888. BetRivers got the nod, and the app went live that following January.
But the timing was awkward. Just two weeks after the RFP closed, the legislature formed its study group to explore whether a monopoly was really the right model. That group found what many in the industry have known for years: monopolies rarely produce strong revenue.
“We’re not seeing significant returns,” Cooke said. “When you factor in the fees being paid to the operator, it’s clear that the current setup isn’t working for Delaware.”
Let’s play devil’s advocate, though. Per Delaware’s own data, BetRivers took in $216.2 million in bets during all of 2024. Of that money, $8.6 million was kicked back to Delaware for taxes. Blowout numbers? Of course not. But we have to remember Delaware has a meager population of 1 million, one of the smallest in the country.
Inner Details Of HB 365
The bill would allow each of the state’s three casinos — Delaware Park, Bally’s Dover, and Harrington Raceway — to bring on up to two online sportsbook partners. They don’t have to, but if all are claimed, BetRivers would have as many as five new competitors. You’d have to imagine that would be the likes of DraftKings, FanDuel, and Fanatics, among others.
Tax-wise, the state would take an 18% cut of sportsbook revenue, plus another 1.5% that’s earmarked for supporting horse racing purses. Cooke said the extra tax revenue could also bolster funding for problem gambling programs — a concern that’s become a central talking point in every state legalizing sports betting.
“We recognize the need to provide additional resources for treatment and prevention,” he said.
The Delaware Lottery and BetRivers Are Pushing Back
Remember, this bill is coming from politicians, not the actual people running the industry. That would be both BetRivers and Delaware Lottery. The two stakeholders are already voicing their opposition to the House Bill. We saw that when each side showed up to the aforementioned committee hearing meeting.
Their opposing argument? Opening the market to more sportsbooks could hurt the state’s bottom line, not help it. They also pointed out the lack of interest during the RFP process — only two companies applied, after all. If Delaware’s such a ripe opportunity, why didn’t more sportsbooks come knocking?
That was then, though. During the same hearing, members of the Sports Betting Alliance — which includes the likes of DraftKings, FanDuel, and BetMGM — were in the room and made it clear they’d be interested if the door opened.
But BetRivers might have an “ace up their sleeve.” Last month, we wrote about how they hired former Delaware Governor and U.S. Ambassador Jack Markell to its board of directors. He’s quite the “powerbroker” in the state, and could thwart this bill if he so chooses. And if we’re RSI, we’d throw every resource we have to keep the monopoly, including the influential ex-governor.
Is Delaware Ready For a Bigger Market?
Some lawmakers voiced concern about changing the system so soon after launch. And fair enough — it’s been a year and a half since BetRivers went live. But for others, the supposed sluggish start is exactly the reason to act now.
We have no dog in this fight, but these are the facts of what’s happening. Check back with us from time to time to get more updates on the industry-changing story.
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