Delaware (not New Jersey) will become the first state outside Nevada to take sports bets following the May 14 SCOTUS decision to overturn PASPA. Delaware’s three land-based casinos (i.e. no mobile, online) open their sportsbooks for business at 1:30p on Tuesday, June 5. The state will enable single game betting (i.e. no in-game bets) and “championship wagering” on various sports/leagues for the first time. Delaware bettors have been able to place multi-game parlay wagers (min. three games) through the state’s lottery system on the NFL games since ’09, the state had the parlays grandfathered in when PASPA was enacted in 1992. The New Jersey state legislature is scheduled to vote on their sports betting bill later this week (June 7). Mississippi, Pennsylvania and West Virginia are also expected to begin offering sports betting before the start of football season.
Howie Long-Short: Delaware Park, Dover Downs Hotel & Casino and Harrington Raceway & Casino are the properties that will begin to take sports bets. Delaware Park and Harrington Raceway are privately owned, but Dover Downs Hotel & Casino is a subsidiary of Dover Downs Gaming & Entertainment (DDE). Back in late April, DDE reported $17.7 million in Q1 ’18 gaming profits (on $34.13 million in revenue) – but a pre-tax quarterly loss of $361,000. Why? The state’s gaming tax structure had them paying out $18.1 million “to the State and Horsemen.” The industry is lobbying for a “casino relief bill” (recently passed by Delaware State Senate) that would reduce their obligation to the state. DDE shares are up 31% (to $1.95) since SCOTUS’ May 14thdecision.
DDE isn’t the only way to invest in Delaware sports betting, Scientific Games the state’s primary sports betting contractor is also publicly traded (SGMS). The company is entitled to 15.6% of the net take with the balance split between state, casinos and horse racing industry.
Fan Marino: Bettors will be able to wager on baseball, football, basketball, hockey, golf, soccer and auto racing, but are not currently permitted to place bets on college basketball or college football games; it’s expected that will change eventually. For the State of Delaware to maximize gaming revenues, it’ll have to — college basketball and college football generate more revenue for Nevada sportsbooks than any other sport. It should be noted that games involving Delaware based teams will be off the boards at all three casinos.
Interested in Sports Business? Sports Finance? Sign-up for our free daily email newsletter list, here!
