Delaware Representative Proposes Opening State to Multiple Sports Betting Operators

State Rep. Frank Cooke (D-New Castle) has introduced a new bill aimed at transforming Delaware’s sports betting landscape. The legislation seeks to permit multiple sports betting vendors, breaking away from the current exclusive contract with the BetRivers app.

In August 2023, the Delaware Lottery Office signed an exclusive contract with BetRivers. However, this deal was made before the Internet Sports Lottery Legislative Working Group could finalize its recommendations. The group later suggested allowing up to six mobile sports betting operators, a proposal Cooke’s bill intends to implement.

Cooke emphasized the need for competition, stating, “This legislation will produce revenue for the state and assure that Delaware state’s lottery office remains competitive with our neighboring states. There is substantial consumer demand for multiple operators. Delaware residents are still driving across the border into Maryland, Pennsylvania, and New Jersey to access their favorite mobile apps.”

Despite these arguments, the bill faces financial concerns. Current estimates suggest the state could lose approximately $3 million annually in revenue. BetRivers currently provides around 40% of its revenues to the General Fund, a significant contribution compared to the proposed 18% from multiple operators. However, this does not include one-time revenue from the $500,000 license fee each vendor would pay for a five-year license.

Debate Over Revenue and Market Potential

Adam Marchuk of Rush Street Interactive, BetRiver’s parent company, defended the exclusive contract, noting the app’s strong performance. “I’ve heard some criticisms of our performance, but we are on pace to meet and exceed all projections for the Delaware online sports betting market this year and for years to come,” Marchuk said. He highlighted that the state retains roughly 58% of gross gaming revenue from BetRivers, benefiting the General Fund, the horse racing industry, and problem gaming support, which he claims is unprecedented in the U.S.

Supporters of Cooke’s bill argue that Delaware is missing out on a substantial market by limiting itself to BetRivers. FanDuel representative Mike Ventre noted, “In the month of March alone, there were 600,000 attempts to log into the FanDuel app in the state of Delaware. These are Delaware residents, folks commuting through the state, and individuals staying in the state.”

House Speaker Valerie Longhurst (D-Bear) questioned the projected fiscal loss, suggesting it might be overstated. “I just have a hard time believing that we would be losing money. So if it’s just specifically language that’s in the bill that’s creating that fiscal note, I would like to know exactly—or not the fiscal note but the loss,” she said.

House Minority Leader Mike Ramone (R-Pike Creek South) expressed concerns about potential legal challenges from Rush Street Interactive if the bill passes. “The way everybody loses is when we end up in court,” Ramone warned. He indicated that any changes without BetRivers’ involvement could lead to lawsuits.

While representatives from Bet MGM and DraftKings supported the bill, Delaware Acting Secretary of Finance Rebecca Goldsmith and representatives from the state’s horse racing industry opposed it.

Despite these challenges, the bill was released from the House Administration Committee with all members agreeing to further negotiations before it reaches the House floor.