Delaware Gambling Laws

Online Gambling Laws in Delaware. The first form of legalized online gambling in Delaware was horse racing betting. It was permitted through a policy change by the Delaware Thoroughbred Racing Commission under the Horseracing Act. Players must be at least 18 years of age. Online poker and casino games came next. When it comes to gambling laws and regulations, the Delaware Lottery manages all gaming in Delaware including online casino gambling. Delaware Lottery also regulates sports betting, Delaware casinos as well as horse racing. On top of that, the organization also regulates existing laws and introduces new ones. Delaware Park is where the first.

Delaware Gambling Laws The basics of Delaware's unique gambling laws, which allow state residents to participate in online casino-style games, plus information about traditional casinos and betting on horse racing. Delaware State Lottery Laws. Gambling Laws in Delaware. The laws regarding Delaware sports betting and gambling overall are incredibly relaxed when compared to the harsh restrictions placed on gamblers in many other states. The Delaware government has sympathy for the efforts of legalising gambling, both in house, and online.

iCrowdNewswire Feb 10, 2021 9:32 AM ET

Delaware was the first state to legalize online gambling in the US, authorizing slots, card games and lotteries in 2012. New Jersey joined the race a year later while Nevada and West Virginia permitted online casinos a few years afterwards.

Today, New Jersey is the biggest market for online casinos. Pennsylvania comes in second while Nevada, which permits online poker but not slots and card games, ranks third. So, what happened to Delaware’s online casinos? Does the state benefit from its online gambling laws?

DE Online Gambling Laws

As mentioned, Delaware became the first state to legalize online gambling in the country in 2012. The first online casino, however, launched a year later. The Diamond State permits all forms of online gambling from sports betting to casinos.

The state makes it fairly easy to open an online casino—licenses start at $50,000. However, the DE takes so much in taxes that many operators are afraid to operate in the country. To expound more, the Diamond State charges new online casinos 100% of their gross profits until start to make at least $3.75 million in profits.

After that, DE reduces its taxation to 43.5% for profits made from slots and 34% for money made from poker and other table games. If an online casino fails to meet the recommended profit threshold of $3.75M, DE can take away the operator’s license.

In light of that information, DE only features three online casinos. The businesses are tied to brick and mortar casinos. In other words, the Diamond State gives out iGaming licenses to operators with land-based casinos in Delaware.

Some charity organizations have licenses to provide a limited number of licenses. But this comes with a caveat—they must share 40% of their revenues with the state. Discover more about online gambling in Delaware at online-gambling.com.

Online Gambling Revenues

Although Delaware was the first state to permit online casinos, it often lags far behind in revenues compared to states that authorized the industry much later. Online casinos gather an average of $10 million in annual revenue, with the state permitting with about $4M of the money.

Although DE’s online gambling revenues are on the rise, they could be higher. Below are the reasons holding DE’s iGaming industry back.

  • DE’s Taxation System

Delaware’s way of taxing online casinos is exploitive to say the least. First, it requires operate to pay for a license fee. Then it takes 100% of their gross annual revenues unless they make over $3.75M. If they do, it takes at least 40% of this money.

Most online casino operators wouldn’t agree to such a deal, which is why DE still hasn’t licensed more operators since 2013. To be fair, the state’s iGaming laws requires license applicants to own land-based establishments locally. But still, its high taxation rate shuns many potential applicants.

  • Small Population

Delaware’s population is a few thousands shy of the one million mark. Still, this categorizes it as a small state, especially when compared to other jurisdictions with legal iGaming laws. Take New Jersey as an example. It has nearly nine million people, ten times that of DE.

By population size alone, NJ deserves to make at least ten times more than the Diamond State. But it makes a lot more than that. With annual tax income of over $400M from online casinos, Delaware doesn’t even come close.

The only state that can rival NJ is Nevada, which is ironic considering Nevada is the biggest market for land-based casinos. Pennsylvania also holds the potential to upsurge NJ now that it has a bigger population. But similar to NJ, it collects relatively high taxes—54% of slot revenue compared to 15% for New Jersey.

  • Equally Small Sports Betting Industry

After becoming the first state to legalize online casinos in 2012, Delaware also became the first state to authorize sports betting in 2018. At the time, the Diamond State planned to permit both land-based and mobile sports betting.

Today, no sportsbook runs a mobile betting app in Delaware. However, there’s a handful of brick and mortar sportsbooks in the state. That said, DE averages an annual betting handle of $100 million. This is 50 times less than the $5B handle NJ’s betting companies recorded last, which shows the impact of mobile betting in today’s world.

New Jersey authorizes online betting. And as a result, over 80% of sports gamblers in the state choose to use their phones for betting. About 20% of this customer base comes from New York, though. That’s why the Empire State is in the process of expanding its betting laws to include mobile betting.

  • Delaware’s Neighbors Permit iGaming

Besides being a small state, DE has the disadvantage of having neighbors with liberal gambling laws. To the North, DE neighbors Pennsylvania, where all forms of online gambling are legal. To the East, Delaware neighbors New Jersey, home the country’s biggest iGaming market.

DE’s only neighbor with conservative gambling laws is Maryland. And starting this year, Maryland might permit both land-based and online betting sites. If Delaware were surrounded by states with anti-progressive gambling laws, it would probably record higher revenues.

As we mentioned, NJ gets roughly $1 billion of its $5 billion sports betting revenue from New York-based punters. Its online casinos also collect millions of dollars from bets placed by outsiders. Unfortunately, there’s nothing DE can do about its neighbors besides changing its iGaming laws.

Is there Hope for DE’s Online Gambling Sector?

Although Delaware’s online gambling industry performs abysmally, it’s improving. Last October, iGaming brought in $643,714 in revenue. This represented a 161% rise from the same month in 2019. It was also a 66% market upturn compared to March, when the industry had a monthly income of $514,959.

Against that backdrop, not all hope is lost for DE’s online gambling industry. There’s a growing demand for online casinos and sports betting. The demand could get higher, though, if DE changes it gambling laws for the better. For starters, it should license more operators and lower its taxes.

The post Are Delaware’s Online Gambling Laws Benefiting the State? appeared first on Financial Market Brief.

  • Horseracing (1935), Lottery (1974), Casinos (1994)
  • $253 million
  • $635 million
  • 18 for lottery and bingo, 21 for casinos and racing
  • Smoking is banned in Delaware casinos.
  • Horseracing, poker, and casino games

Delaware casinos and gambling is a massive industry considering the size of the state. The state offers more forms of gambling than any other state with the exception of Nevada. Delware gambling dates back to 1760, 27 years before it became a state. Underground horseracing pools operated during that time. This activity became regulated in 1933. It is one of the oldest forms of legalized gambling in the country.

The Delaware Lottery manages all of the gaming within the state. It has the full power to regulate existing gambling and introduce new ones. This includes its online gambling industry. In addition to the traditional lottery games, there are also legal Delaware casinos, horse racing, and sports betting.

Delaware Casinos Map & Guide

  • Delaware Park
  • Dover Downs
  • Harrington Raceway
  • 3
  • 4
  • 0

Types of Delaware Online Gambling Allowed

There is a wide variety of Delaware online gambling. Like most states, it permits off-track betting on horses. The most popular sites for this are TVG and TwinSpires. It is one of just two states, New Jersey being the other, that regulate online casino games. The software is provided by 888. It includes blackjack, roulette, Jacks or Better video poker and about 15 slot titles.

Online poker is also legal in Delaware. The Delaware Poker Network, created in 2015, connects to WSOP.com in Nevada. This is the only legal interstate poker liquidity pool in the U.S.

Players will find online poker and casino games at the websites belonging to the state’s three racinos. Those are Delaware Park, Dover Downs, and Harrington Raceway.

The state lottery regulates the Delaware online gaming sites. It is the only lottery in the country that oversees poker and online casino gambling.

Daily fantasy sports sites operate in Delaware. DraftKings and FanDuel are among the companies that claim fantasy sports is a skill game. Delaware officials have yet to release an opinion on the legality of fantasy sports sites in the state. An investigation is underway.

Types of Live Delaware Gambling

  • Slots: Yes
  • Blackjack: Yes
  • Poker: Yes
  • Craps/Roulette: Yes
  • Horses: Yes
  • Lottery: Yes

The full spectrum of Delaware gambling is completely legal within its borders. Most of it is regulated by the Delaware Lottery in cooperation with the state’s three horseracing tracks. The racing venues operate live tracks and off-track betting. There is also a full slate of casino games inside at these tracks. These are known as video lottery Delaware casinos. Slots, video poker, tables games using cards, craps, roulette, and live poker are all offered at these Delaware casinos.

Poker is permitted at charitable rooms in Delaware. However, with online poker being legal, it has overshadowed any attempt to illegally play poker in other venues.

The Delaware Lottery sells traditional scratch-off and lotto tickets. This includes interstate drawings. Delaware’s lottery is the only one in the country that sells sports betting tickets. Bettors may purchase parlay cards for NFL games. No other sports are permitted, nor are straight bets on a game. Delaware tried to offer Nevada-style sports betting but was stopped when challenged by the sports leagues.

Delaware Gambling Laws

The Delaware Lottery has nearly full control of the state’s gaming industry. It regulates racing, casinos, and the sale of its own tickets. Delaware leaves all major decisions for the lottery. A constitutional amendment is not necessary for expansion.

At this time, the Delaware Racing Commission permits horseracing at the venues; Delaware Park, Dover Downs, and Harrington Raceway. These tracks are also permitted to operate full Delaware casinos, with games including:

LawsState
  • Slots
  • Video poker
  • Blackjack
  • Three Card Poker
  • Four Card Poker
  • Ultimate Texas Hold’em
  • Craps
  • Roulette
  • Baccarat
  • Pai Gow Poker

Delaware Gambling Laws

They also have a wide range of live poker rooms under the lottery’s oversight. These three Delaware casinos also have online betting sites that spread blackjack, roulette, video poker, and slots. Online poker rooms are also branded with these sites. The racinos do not operate gambling sites. That is left to the Delaware Lottery. The racinos simply lend their branding and websites.

The tax rate on gambling in Delaware is 43%. This includes online gambling in Delaware. The first $3 million in annual revenue from online betting is taxed at a 100% rate. Since online gambling has yet to reach that number, the state’s racinos and 888, its software provider, have never seen a penny for their collective efforts.

The Delaware Lottery permits the governor to enter into poker liquidity sharing agreements. Governor Jack Markell created a gaming pact with Nevada Governor Brian Sandoval to create a joint pool of poker players in February 2014. This went live a year later.

Charity gambling is permitted in Delaware, although it is a very small segment of the state’s industry. Bingo, raffles, and poker tournaments are permitted. There is a charitable poker room in the state that specializes in No Limit Texas Hold’em events.

List of Delaware Casinos

Even with only three official Delaware casinos, it is enough to cover the entire state; as it is one of the smaller states. You can locate these casinos in Delaware by address or by checking their websites. However, for those that want driving instructions can use our Delaware casinos map as a guide. They do have another establishment, but the Performance Poker Room in Frankford is used only for poker.

CasinoSizeAddressWebsite
Delaware Park – Wilmington2,540 Slot Machines777 Delaware Park Blvd.www.delawarepark.com
Dover Downs – Dover2,600 Slot Machines1131 North DuPont Highwaywww.doverdowns.com
Harrington Raceway – Harrington1,800 Slot Machines18500 S. Dupont Hwywww.harringtonraceway.com
Performance Poker Room – FrankfordOnly Poker34407 Dupont Blvd.No website

Delaware Gambling History

Gambling in Delaware dates back to before it became the first state to ratify the U.S. Constitution. The first racetrack opened in Delaware in 1760 in the town of Newark. It operated for more than 150 years with off-the-book betting on horses.

Florida

The Delaware Racing Commission was created in 1933. This regulated horse racing in the state for the first time. The first racing license was issued in 1935. Delaware Park was the facility. It is still open today.

Creation of Lottery and Early Beginnings

Delaware Online Gambling Laws

The Delaware Lottery was created in 1974. This permitted the sale of lottery tickets to generate revenue for the general fund. The first scratch-off ticket was sold in 1976. Lucky Stars was the first weekly lotto game. Its sales began in 1977. In 1991, the Delaware Lottery joined the Multi-State Lottery Association. This gave it access to interstate jackpots. Games offered these days through that agreement include Powerball and Mega Millions.

The Delaware Lottery expanded its reach to video lottery machines in 1994. This permitted the state’s three racetracks – Delaware Park, Dover Downs, and Harrington Raceway – to install slot machines. Table games, including live poker, blackjack, craps and roulette, were added in 2010. These games were previously only available in electronic format in Delaware casinos.

In 1976, the Delaware Lottery rolled out a new type of game. It was parlay cards for NFL games. Players were required to pick at least three outcomes. The NFL was not nearly as popular then as it is today. The idea was a failure and was discontinued after one year. The law remained on the books.

Is There A Casino In Delaware

In 2009, Delaware tried to bring back sports betting. The state legislature expanded the breadth of the sports gambling to the same extent that is offered in Nevada. The sports leagues – NFL, NHL, NBA, MLB, and NCAA – took notice and filed a federal lawsuit to stop the games from going live. The sports leagues asserted that the Professional and Amateur Sports Protection Act (PASPA) did not permit Delaware to expand sports betting. Delaware is exempted from that law and the state insisted that it could offer and form of gambling.

PASPA is a federal law that sought to prevent the expansion of sports gambling. It exempted four states that had sports betting laws on the books at the time. Delaware was one of the exempted states.

The Third Circuit Court of Appealsaffirmed a lower court’s ruling that Delaware could only offer the same type of betting that was on the books when PASPA was enacted in 1992. That was three-team or more parlay cards on NFL games. This prevented the sale of tickets on all games and single betting on the NFL. Delaware went ahead with its NFL parlay cards through a partnership with William Hill. It has been considered a success.

Delaware became the second state to legalize online gambling in 2012. This permitted the Delaware Lottery to operate poker and casino sites on the Internet. The Delaware Lottery contracted with 888 to provide the games. These are available from the websites of the three Delaware casinos, Delaware Park, Dover Downs, and Harrington Raceway.

Lotto Tax and Money Sharing

The Delaware Lottery tax rate is 100% on the first $3 million in revenues each year. The online lottery only generates about half that amount annually. This means that 888 and the racinos receive no money for their online games. This has made it impossible to promote the games as there is no motivation.

Delaware Governor Markell signed an interstate poker liquidity sharing agreement in February 2014 with Nevada Governor Sandoval. This went into effect in March 2015. Delaware online poker players have access to WSOP.com in Nevada. This expanded the online poker game available ten-fold but did not help the state increase revenue. Online poker only generates about $30,000 in rake each month. Casino games win about $100,000 monthly.

Delaware Casinos & Gambling FAQ

Yes. It has been around for hundreds of years.

Yes. You can check out our casinos list or use our Delaware casinos map to locate them.

Delaware Park is located in Wilmington. Dover Downs is in Dover. Harrington Raceway is in Harrington.

Slots, video poker, live poker, blackjack, craps, roulette, blackjack and other house-banked card games are all legal in Delaware casinos.

Yes. It was the second state to regulate and legalize online gambling.

What games are legal at online casinos in Delaware?

Blackjack, roulette, video poker, Texas Hold’em, Omaha, Seven Card Stud and slots are legal at Delaware online casinos

Us Online Gambling Laws

Delawarepark.com, Doverdowns.com, and Harringtonraceway.com are the three websites that offer the Delaware online lottery.

The Delaware Lottery sells parlay tickets based on three or more outcomes on NFL games. These are the only sports betting tickets written in Delaware.

Why can’t Delaware offer full sports betting since it is exempted from PASPA?

PASPA only exempted the types of sports betting permitted in 1992 when it passed Congress. For Delaware, that means it may only offer NFL parlay cards.

Nevada, Montana, and Oregon are the other three states exempted from PASPA.

The minimum Delaware gambling age is 18 years for traditional lottery players. The minimum gambling age for sports lottery, off-track betting and casino is 21 years.

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