Last updated on May 25th, 2024 at 06:34 am
The Delaware online sports betting expansion bill, authored by Representative Franklin D. Cookie, is now on its way to the House Appropriation Committee. This bill, if passed, will significantly open up the online sports wagering market, allowing each casino to partner with a maximum of two online sportsbook operators. BetRivers is the only online sportsbook operating via its partnership with the Delaware Lottery.
The House Appropriations Committee will hold a hearing on the measure once it has passed the House Administration Committee. The plan introduced by Cooke will allow multiple online sports betting providers to set up shop in Delaware. In exchange for a 5-year license, licensees must pay a fee of $500,000. According to bookie pay per head software experts, a tax rate of 18% on the operator’s monthly adjusted gross sports betting receipts is established by his law.
Operators will contribute 1.5 percent of their monthly adjusted gross sports betting receipts to fund the state’s horse racing purses. The measure passed the administration committee with a vote of 4-0-1. Within twelve days of the bill’s introduction, the House Appropriations Committee will conduct a hearing.
Delaware Online Sports Betting Expansion Bill
According to bookie news reports, Internet Sports Lottery Legislative Working Group proposals are considered in the law. The organization urged Delaware lawmakers to legalize online sports betting in a report they sent in December.
The Internet Sports Lottery Legislative Working Group suggested that Delaware study the success stories of nearby states like New Jersey, Maryland, and Pennsylvania in online sports betting. Thanks to the three states that already provide it and the abundance of online sports betting firms, Delaware might be in store for a more competitive and commercially prosperous sports betting industry. Thus, people can learn how to open a sportsbook in those states.
The group’s recommendations included a revenue estimate from Eilers & Krejcik. The first five years of a multiple-operator system transition in Delaware may bring in $30.7 million in sports betting taxes, and after that, each year, they would bring in $9 million.
BetRivers’ Monopoly in Delaware
Rush Street Interactive (RSI) has exclusive authorization for sports betting and iGaming operations in Delaware through an agreement with the Delaware Lottery. After reaching the deal in August, it took about six months to launch in the state. Dec. 27 marked the introduction of BetRivers in the state.
Rush Street Interactive manages the online gambling industry in Delaware, having been selected by the Delaware State Lottery. This agreement had a base duration of five years and may be extended for an extra five years, with each successive one-year extension subject to regulatory clearances. As the only vendor for the state, the firm succeeded 888.
The Delaware Lottery and Rush Street Interactive, the parent firm of BetRivers, both had representatives present at Wednesday’s committee hearing who advocated against the measure. Both spoke out against the plan to LSR earlier in the year.
They say expanding the sports betting business would drain the state’s coffers. According to the businesses, there was a lack of market interest during the RFP process.
Only 888 and BetRivers were considered in response to the lottery’s proposal request. Nevertheless, DraftKings, FanDuel, and BetMGM were all represented at Wednesday’s hearing, which the Sports Betting Alliance attended.
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