Today, the Delaware Lottery is the regulator for the state’s gaming and betting industry, regulating race betting, casinos, online betting, lottery, and more. The Delaware Racing Commission now focusses solely on the horseracing itself, leaving the oversight of gambling practices in the hands of the Lottery regulator.

Each of the different forms of gambling has specialised laws governing their practices, which we will take a closer look at:

• Horseracing: Horserace betting can be conducted on-site and off-site via popular sites like TVG and Twinspires. The betting structure must involve Pari-mutuel pool betting and no other. Regular races are held in the state at Delaware Park, Dover Downes, and Harrington Raceway. Outside states are often involved in the betting at races held here. Citizens must be 21 years or older to wager on pari-mutuel races.

• Lottery and Instant Games: Lottery Tickets and Instant Games, like scratch cards, are available to all players over 18 years of age. The State lottery also installs video lottery machines at the three ‘racinos’ (racetrack casinos) in the state. Much of the revenues generated on lottery sales goes to the state’s general fund for spending on education, healthcare, and the like.

• Casino Gambling: There are only three licensed land-based casinos for gambling in the state of Delaware. These include Delaware Park, Dover Downes, and Harrington Raceway. Aside from hosting horse races, gamers can enjoy a host of different casino games, including slots, video lottery, video poker, blackjack, roulette, craps, and more. Each casino has its own dedicated poker room for skilled players over the ages of 21 years. All casino floors are non-smoking venues.

• Sports Betting: Sports Betting is limited in Delaware, as it finds itself as one of four states exempted from offering official sports betting for both amateur and professional leagues in the country. This restriction was put in place in 2009 after the sports leagues in the USA moved to veto Delaware from sports gambling under the PASBA Federal Law. Delaware can only offer three-team or more parlay cards on NFL games, which does well in-state.

• Fantasy Sports: While Daily Fantasy Sports were outlawed in 2016, the decision was overturned in July 2017 at the state level when Governor John Carney signed the Fantasy Contest Act into power. Only DraftKings, FanDuel, and Yahoo Fantasy Sports may operate freely within the state as skill-based sporting entertainment companies.

• Online Gambling: Delaware is one of only a handful of states in the USA that managed to turn over the Federal Wire Act of 2006 in their state. It was initially legalised in 2012 and has not been affected by bans across the nation. All online gambling is regulated by the Delaware lottery and can only be hosted by sites owned by Delaware Park, Dover Downes, and Harrington Raceway. These operators work in partnership with 888.com, Scientific Games, and William Hill, to provide top internet casino content to players like slots, video poker, and other table games. Players must be 21 years or older to participate in online gambling in Delaware.

• Online Poker Rooms: Aside from the Delaware Poker Network, residents of the state have full access to the WSOP.com in Nevada, increasing the scope of poker available to players ten-fold. The governors of both states signed an interstate liquidity agreement in 2014, which kicked into effect in 2015. This is the only agreement of this kind in the USA. Players must be 21 years or older to play.

• Charitable Gaming: While Social Gaming is a grey area in Delaware, Charitable gambling is allowed for the boosting of revenues for registered Non-Profit organisations. These entities can hold Poker Tournaments, Bingo games, and raffles.

It is important to note that winnings on gambling in the state of Delaware are taxable at a federal level. Reportable winnings of over $5,000 require federal tax withholding of 24%. Because your wins are taxable, you will need to keep a log of your wins versus your losses to offset big tax payments.

Aside from the state-run lottery, there are only 3 licenses raceways in Delaware that are permitted to provide gambling to the state. There is no set licensing procedure to apply for operator status, as no planned additions to the number of sites are under discussion. Software providers may apply but are strictly vetted and must comply with the regulations set out by the government.

In the past, Racetracks would have to pay hefty $13,250,000 licensing fees every year to operate table games, however, a new law enacted in 2018 saw relief brought to the industry, as these tracks are no longer subject to licensing fees.

In May 2013, the Lottery Regulator selected brands such as Scientific Games, 888 Holdings and Williams Hill to provide the initial technology for all online gaming activity. These companies are required to partner as contractors with the Lottery to provide gambling services to the state.

To complete an initial technology license, the software platform must pay a $4,000 license fee. Also, the applicant must post a bond in an amount to be determined by the Lottery. Other required for the approval process include:

• If required by law, the applicant must hold a license to conduct business in Delaware.
• Applicants must agree to modify any technology to fit Lottery standards, if necessary.
• Applicants must promptly report any violations of the gambling rules.
• Applicants must attend all trade shows required by the Director of the Lottery.
• All technology must be operated in a manner consistent with the public interest.
• Applicants must hold harmless the Lottery and the State of Delaware.
• The applicant’s premises must be open for inspection to Lottery agents and personnel.
• The applicant must maintain all required operations records.
• All products offered must be authorized by the Lottery.

Testing will be carried out on gaming machines from time to time, by independent testing labs, to ensure that fair gaming is always provided to the public.

The vetting of companies involved in the gambling industry does not stop at the technology provider level. Any supporting (non-gaming) service providers must be suitably licensed (costing $2,000 per annum) by the Lottery Regulator.

Key staff of Technology providers and ancillary support services will need to be licensed too, whether they are Key Employees, Gaming Employees, or Service Employees.  A full background check will be done on such applicants, including credit scoring, and criminal background check. These licenses will require the disclosure of the following:

• Basic Identification
• Employment History
• Licensing Disciplinary Action
• Criminal and Civil Action history
• Gaming Regulatory history
• Personal Financial Information
• Information about any potential conflicts of interest.
The sheer process of licensing is a show of the quality of regulation imposed in Delaware in efforts to protect the industry and all its gamblers, alike.