Located in the northeastern part of the Delmarva Peninsula, Delaware is the second-smallest and the sixth least populated state in the US. It borders Pennsylvania to the north, New Jersey to the east, and Maryland to the west and south, with all three neighboring states boasting mature gaming industries. Despite its diminutive size, Delaware has managed to carve out a niche for itself in this highly competitive hotbed for gambling activities.
Residents of the First State have access to almost every form of gambling you can imagine, including casino gaming, sports wagering, pari-mutuel betting, lotteries, and charitable gaming. Three commercial racinos operate legally as part of the state’s three thoroughbred race tracks, namely Harrington Raceway, Delaware Park in Wilmington, and Dover Downs in Dover.
The racinos provide a wide range of betting options to locals and visitors alike, including hundreds of slot machines, video lottery terminals, and table games like blackjack and roulette. The three commercial operators collectively employ over 5,000 Delawareans and fetch more than $295 million in annual tax revenue. Tribal gambling is yet unavailable in the state.
Delaware is somewhat of a trailblazer when it comes to US online gaming as it was among the first states to provide legal access to remote casino-style games. Residents can enjoy online slots and table games from the comfort of their surroundings via websites and mobile apps operated by the three landbased racinos. Daily fantasy sports also enjoy a legal status here.
Legal gambling is run via the state-sanctioned Delaware Lottery which regulates and licenses local industry participants. It is assisted in its regulatory work by the Delaware Division of Gaming Enforcement (DGE) which has exclusive jurisdiction over all criminal offenses associated with authorized gambling facilities. The DGE also has various other regulatory duties that aim to ensure and preserve the probity of the local gambling industry.
Gambling Laws in Delaware
True to its motto “Liberty and Independence”, Delaware is relatively lenient when it comes to gaming. Gambling laws are comparatively liberal here as the state strives to compete with its neighbors Pennsylvania, Maryland, and New Jersey, all of which boast thriving gaming markets. With that in mind, gambling is prohibited in this jurisdiction unless the operators have acquired the necessary authorization to legally distribute their services within state borders.
Delaware State Constitution
Delaware Criminal Code
1994 Horse Racing Redevelopment Act
House Bill 310 of 2010
Online Gambling Regulations
Delaware State Constitution
Article II, Section 17 of the Delaware State Constitution outlines the legal forms of gambling in the First State. It stipulates all gaming is forbidden except for state-sanctioned lotteries, authorized bingo games, simulcast betting, and pari-mutuel wagers on horse races at licensed tracks. Non-state-operated lotteries are also legal when conducted by non-profit organizations like charities, fraternities, veteran clubs, and volunteer fire-fighting groups.
These non-profit entities should have existed at least two years prior to the conduct of the lottery games. Licensed casino games like slots, baccarat, craps, and roulette are also exempt from the prohibition but are governed by separate pieces of legislation we shall cover shortly. No precise definition of lotteries is featured in the Constitution but the law is interpreted to include table games, video lottery terminals, and remote gaming.
Delaware Criminal Code
The Delaware Criminal Code outlines the penalties imposed for gambling-related offenses in Chapter 5, Subchapter VII. The sale of illegal lottery tickets, the illegal dissemination of gambling information, and the possession of illicit gaming devices are treated as class A misdemeanors. Individuals convicted of such offenses might suffer sentences of up to one-year imprisonment and maximum fines of $2,300.
Engaging in illegal dice games like craps is considered a violation that comes with maximum penalties of one-year probation and fines ranging from $345 to $1,150. Repeated violations come with higher monetary sanctions. The possession of antique slot machines, licensed gambling devices, and state-owned video lottery terminals is legal according to the state statutes. Antique slot machines are those that have been manufactured 25 or more years ago.
1994 Horse Racing Redevelopment Act
The General Assembly of the First State legalized the operation of slot machines and video lottery terminals in 1994 via the passage of the Horse Racing Redevelopment Act. The main purpose of this legislation was to help revitalize the local racing industry. It authorized pari-mutuel racing facilities in the state to offer video lotteries and slot machines.
Each of the three facilities can operate a maximum of 2,500 video lottery terminals on its premises. Under Section 4820(b)(1) of the Delaware Code, each landbased race track can receive authorization from the regulator for the operation of up to 1,500 additional terminals.
Video lottery agents that breach their licensing conditions face fines ranging from $1,000 to $10,000 per violation. The theoretical annual return of video lottery terminals should be at least 87% but should not exceed 95% under Section 4805 (a) (15).
House Bill 310 of 2010
In 2010, the Delaware Senate approved House Bill 310, which enabled the three race tracks in the state to further expand their range of betting products. The legislation allows the three facilities to provide table games to their patrons, including roulette, banked and non-banked poker, craps, blackjack, and baccarat. It outlined the licensing requirements for the employees and the fees imposed on the three authorized race tracks.
Online Gambling Regulations
Delaware introduced laws to legalize and regulate online gambling as early as 2012, establishing itself as a trailblazer in this field. Unlike other states where only certain forms of remote betting are available, Delaware boasts full-fledged gambling sites operated by the racetracks in Dover, Wilmington, and Harrington. Players located in the state have access to online slots, tournament poker, video poker, blackjack, and roulette.
The Delaware State Lottery Office oversees such remote activities under the provisions of the Delaware Gaming Competitiveness Act of 2012. The state-sanctioned lottery operator received authorization for the remote conduct of traditional lottery games. The legislation details the licensing criteria for the provision of online gaming in the state.
Delaware stands out from other states with regulated interactive gambling because it does not give its online operators the opportunity to pick their own platform providers. Instead, the state-sanctioned lottery has opted to contract with two technology providers on behalf of the local operators. The Gibraltar-based 888 Holdings has been the exclusive supplier of online gaming and poker software in the First State since 2013. The Nevada-based Scientific Games Corporation provides sports wagering content and management services to the state lottery.
Sports Betting Regulations in Delaware
Delaware lives up to its official nickname as it became the first state to approve legal sports wagering after the repeal of the federal ban under PASPA (Professional and Amateur Sports Protection Act) in 2018. The state lottery operator regulates and controls sports wagering, which is confined to the three racinos for the time being.
Residents can also bet on sports at over one hundred retail locations but the options there are limited solely to collegiate and professional football parlays. The retail sportsbooks in the racinos offer a more diverse range of options, including point spreads, moneyline bets, teasers, futures, round robins, and propositions.
The retail sportsbooks are taxed at a 50% rate imposed on their sports wagering revenue. Residents of the First State cannot punt on events that involve local college teams, although betting on collegiate games is generally permitted. Retail locations and racinos are not required to pay integrity fees to professional sports leagues.
Responsible Gambling in Delaware
Being one of the first states to regulate online casino gaming, Delaware has adopted various regulatory policies to ensure the local adult population gambles responsibly. Section 4815(b)(2)(c) of the Delaware Code mandates that $1 million or 1% of the slot revenue collected by the state (whichever amount is higher) should go toward the local Department of Health and Social Services and the Division of Substance Abuse and Mental Health.
A portion of this money is also allocated for the treatment and support of gambling addicts and their relatives. In addition, $250,000 or 1% of the proceeds from table games are used to facilitate responsible gambling.
Identifying Problem Gamblers
Personalized Limits
In-Game and Platform Features
Self-Exclusion Policies
Age Requirements and Restrictions
Identifying Problem Gamblers
The employees of online operators and technology suppliers must undergo comprehensive training to ensure problem gamblers who have excluded themselves have no access to advertising materials, promotional incentives, and loyalty club materials. Staff members should also be able to identify and assist compulsive gamblers.
Personalized Limits
Online operators must feature prominent advertisements for addiction treatment services along with links that lead to their sites’ self-exclusion pages. Online players should be able to set personalized limits on their losses as well as on how much they bet per game or within a given period.
In-Game and Platform Features
Delaware legislation does not expressly cover the in-game features of the online gambling platforms used by licensed operators. There are no clear-cut requirements on functionalities like the autoplay, losses disguised as wins, turbo play, or near-misses as is the case in other jurisdictions. Such features were recently outlawed in the United Kingdom since the local regulator (UKGC) considers them harmful to players and contrary to responsible gaming efforts.
Other than that, the internet operators must ensure customers are not on the self-exclusion list before allowing them to complete the registration process and play. The Delaware Lottery Office frequently updates the official exclusion list. Each customer can have no more than one active account with each online gaming operator.
The free demo counterparts of the casino games should have the same return percentages and winnings odds as the real-money versions. Other than that, all real-money accounts are subject to obligatory age and identity verification. Gambling on credit is not an option neither online nor at brick-and-mortar facilities.
Self-Exclusion Policies
Players can voluntarily place themselves on a self-exclusion list to restrict their access to gambling for one to five years or permanently. To do this, they must submit their exclusion forms in person by visiting the office of the Delaware Lottery, located in Dover. Gamblers who have self-excluded temporarily can reinstate themselves after their exclusion period ends, also in person.
The Delaware Lottery or the Division of Gaming Enforcement must approve their request for reinstatement. Other than that, excluding oneself is possible across all licensed betting services in the state, including lotteries, retail sports wagering, and online casinos. The relatives of problem gamblers cannot forcibly place them on the exclusion list, however.
Age Requirements and Restrictions
The three landbased racinos do not offer free alcoholic drinks to patrons gambling on their premises. They should restrict minors from gambling and accessing the gaming areas. Speaking of minors, you have to be at least 21 years old to partake in online or retail gambling activities in the First State. The minimum legal age requirement for participation in lotteries is 18 years old according to Section 4810(b) of the Delaware Code.
As for accessing the retail sportsbooks and race tracks, persons under 18 can visit only on condition an adult accompanies them. Daily fantasy sports are also legal in the state under the Delaware Interactive Fantasy Contests Act that passed in July 2017. Local players can participate in them as long as they are at least 18 years old. Last but not least, online operators should segregate customers’ money from their operational funds to protect them against corporate insolvency.
Gambling Advertising Policies and Restrictions
Delaware is somewhat liberal in its stance on gambling-related advertising. One of the few conditions licensed operators must meet is not to advertise their products in a misleading fashion. This is to say marketing materials should not deceive players into thinking the odds of winning outcomes are higher than they are in reality.
All marketing materials require the approval of the Delaware Lottery to ensure they are appropriate and accurate. More importantly, the advertisements should contain links leading to websites that provide information on treatment, prevention, and assistance for those addicted to gambling and their close relatives. The operators must remove self-excluded gamblers from all forms of marketing and promotions.
Delaware Gambling Regulators
From everything we have written so far, you can probably tell the state-sanctioned lottery operator exercises what looks like a monopoly on the local gambling industry. Not only does it own all video lottery terminals authorized in the state, but it has also selected the platform providers online gambling operators must team up with. Given all this, it only makes sense the Delaware Lottery Commission also has the mandate to regulate all forms of gambling within the state.
Delaware Lottery
Division of Gaming Enforcement
Delaware Lottery
Created under Section 4837 of the Delaware Code, the Lottery Commission operates as part of the state Department of Finance. It has five members all of whom have citizenship in the state, including a lawyer, a public accountant, a law enforcement representative, one business person, and one member of the public. Individuals with membership in the local Thoroughbred Horsemen’s Association and the Standardbred Owners Association are disqualified from serving as commissioners.
The Delaware Governor selects the five commissioners and appoints them with the approval of the Senate. Each commissioner can serve a maximum of one five-year term. Only three of the commissioners can share the same political party affiliation. The Lottery Commission oversees and licenses authorized gambling businesses operating in the state.
Division of Gaming Enforcement
The Lottery Commission is assisted in this task by the Division of Gaming Enforcement (DGE). Founded after the passage of the 2010 Delaware Gaming Competitiveness Act, the DGE operates as part of the Delaware Department of Safety and Homeland Security. It has jurisdiction over all criminal offenses related to gambling or lotteries in the state.
It conducts investigations into the background, probity, and fitness of all license applicants that require authorization from the Delaware Lottery. The DGE also assists the state lottery in considering and implementing its rules and regulations. The Division’s priority is safeguarding and maintaining the integrity of the local gambling industry.
Conclusion
The gambling industry of Delaware is relatively small in size but this is unsurprising considering the acreage of the state itself and its population, which is a little over one million. Another factor that influences and probably impedes further growth is the regulatory and licensing structure the state uses.
Casino gambling and sports wagering in all forms are pretty much run via the state lottery operator, leading to an uncompetitive environment. The burden of high taxes does little to improve the situation. On the bright side, the state regulates all forms of gambling you can think of in both terrestrial and remote format.
