- Delaware’s Q1 sports betting numbers have topped $3.1 million, a large improvement over last quarter.
- The state still has a long way to go to reach its $23.5 budgetary estimate of annual sports betting revenue.
- Online sports betting has not yet been rolled out.
DOVER, Del. – After a rough rollout and under-performing wagering numbers, Delaware sports betting seems to be off to a stronger start in 2019. March was the industry’s best month yet, earning $1.6 million in revenue.
Lately, the narrative from sports wagering critics in Delaware was how the state was misled – or itself misled the public – in suggesting that sports wagering would generate state revenues of $23.5 million.
However, current trends indicate that that figure isn’t all that far-fetched. The net proceeds (i.e. state profit) from January 1 through March 31 are $3.1 million on a total handle of $30.9 million. The state thus achieved an effective take of 10 percent.
This number omits earnings that went towards vendor fees and service charges, so the actual hold was even higher at 11.5 percent. Most sportsbooks are not able to maintain these kinds of success rates, but they’re not unprecedented.
Stretched out over the course of the year, assuming this quarter’s data holds steady, that would put Delaware on track for a total 2019 haul of $12.4 million in wagering revenue. (Remember, sports betting in Delaware is a product of the state lottery, allowing all betting proceeds to go straight into state coffers.)
Of course, $12.4 million is much less than the budgetary estimate of $23.5 million (which assumes a mature market and statewide online sports betting). But the scenario above – where the wagering holds steady at these Q1 volumes – is not likely to happen.
Instead, it’s probably going to go up.
Unlike in 2018, Delaware sports wagering will see both a full NFL season and NCAAF season this year. In the US, football has long been the peak of the sports wagering annum.
It’s not out of the realm of possibility that Delaware hits its estimate sooner rather than later, especially if Internet-based mobile sports betting launches in time for the start of football season.
What’s Going On With Delaware’s Online Sports Betting?
Unfortunately, though online sports wagering is completely legal in Delaware and would operate under the direct purview of the state lottery, the product has not rolled out yet. And that’s holding Delaware’s sports betting numbers back.
For perspective, the Delaware lottery offers a number of online games within its iGaming platform. These allow state residents to play virtual poker, slots, and table games from home.
In the state year to date, iGaming has been exceedingly popular, seeing some $31.1 million in wagers placed. However, the house retention of this action is poor, with payouts totaling roughly $30.2 million.
Thus, with its iGaming product, Delaware’s total revenue (even before vendor fees) is just $900,000. That’s a mere 3% keep for the house.
Sports betting offered online, of course, will be more popular and far more profitable on a per capita basis.
In order for Delaware to achieve its sports wagering revenue projections, it will need to deploy fully-fledged, statewide mobile betting. Without access to sports betting in Delaware over the Internet, the vast majority of potential bettors’ needs simply won’t be met.
Delaware’s wagering figures are looking better so far this year, but work still needs to be done to maximize state revenues. In the absence of online betting, that $23.5 million budget allotment might seem like a pipedream.
With it, that number actually seems a little low.