In a move to boost Delaware's sports betting environment, state Representative Frank Cook (D-New Castle) introduced legislation that would allow multiple sports betting vendors to operate in the state. The proposal is a major departure from the current model, which entails an exclusive agreement with the BetRivers app.

Background and context:

The deal with Betriver was initiated by the Delaware Lottery Bureau back in August 2023. Cook, however, points out that the settlement was completed before the Internet Sports Lottery Legislative Working Group delivered its final report. The working group's recommendations included permission from up to six mobile sports betting operators, which Cook intends to formalize through legislation.

Key to Cook's argument is the state's improved revenue generation and increased competitiveness compared to its neighbors. "There's a significant consumer demand for multiple operators. Delaware residents are still driving across the border to Maryland, Pennsylvania, New Jersey to access their favorite mobile apps," Cook stressed, according to Delaware Public Media.

Proponents of the bill expect long-term profitability through a more competitive market, but the current fiscal outlook projects the state's annual revenue loss of about $3 million. Under the proposed legislation, businesses would have to donate 18% of their revenue to the state's finances, in contrast to BetRiver's current contribution of about 40% to the general fund. However, it should be noted that the financial notes do not include one-time revenue from the $500,000 license fee that each vendor is required to pay for a five-year license.

Industry leaders' insights:

Adam Marchuk, who represents BetRivers' parent company Rush Street Interactive, advocates for its existing model, arguing for profitability and consistency with forecasts. However, proponents of the bill argue that Delaware is losing potential revenue due to limited brand recognition with BetRivers, citing significant interest in other platforms such as FanDuel.

House Speaker Valerie Longhurst (D-Bear) expressed skepticism about the accuracy of the expected financial losses and called for a revaluation. Meanwhile, minority leader Mike Ramon, R-Pike Creek South, raised concerns about potential legal hurdles for Rush Street Interactive if legislation moved forward, given existing contractual arrangements.

Despite differing opinions, the House Administration Committee decided to issue the bill, urging suppliers to engage in further negotiations before it moves to the House. The decision reflects ongoing discussions about the future trajectory of Delaware's sports betting market, highlighting the complexities inherent in navigating regulatory and economic considerations in this evolving environment. 무료슬롯사이트