Delaware's Online Gambling Slippery Slope

Published Friday, October 11, 2013 -
Delaware's Online Gambling Slippery Slope

The internet gambling industry in the USA is moving along at what many card players would consider a very slow pace. Online poker is the main event in Nevada but New Jersey is holding out the promise of casino games and maybe even internet sports betting. Then there is Delaware with its diminutive area and population which has been asking itself can it compete in the big leagues.

It has been suggested by various publications that at some point Delaware will have to get out of the gambling business eventually. Some political leaders are seeing the writing is on the wall when it comes to the law of diminishing returns.

Delaware like many states looking for addition revenue to balance the books twenty years ago started with the lottery which has progressed to the intrastate lottery then slots, other casino games and now the introduction of online gambling. The state has been actively involved in taxing the poor critics argue for years and keeping taxes low for the rich. Well that is what the people want the government says and lottery proceeds have helped with the social programs available in the state. Now gambling funds are 8 percent of the state’s revenue stream.

Opinion has it the market in the eastern USA is saturated with casinos and gambling as other states such as Maryland and Pennsylvania regroup and create more gambling opportunities closer to home. New Jersey’s Atlantic City casinos have been subject to same fate. Online gambling may just make the issue of saturation in the eastern region more complex. Delaware is offered by The Delaware Internet Lottery which is essentially a single-provider system. The Internet gaming provider will be a joint venture of Scientific Games (the current live slots provider in Delaware) and 888 Holdings (including their 888 online poker platform). The State Lottery will take their usual cut of gaming revenues at 43.5% on slots and 34% on table games, including poker.

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