Delaware Lottery iGaming: Licence, Vendors and Tax Guide
Delaware Lottery iGaming runs on a state-monopoly model. The Delaware Lottery controls a single online casino platform, and no independent operator can apply for its own skin the way operators do in New Jersey or Pennsylvania. This article covers how the model works, who can offer games, the vendor licence route for suppliers, the tax and revenue split, and what a Delaware role does and does not cover for an operator or B2B supplier planning US market entry.
Key facts
- Regulator: Delaware Lottery (administers the platform); Division of Gaming Enforcement (background checks)
- Model: state monopoly, one platform, three racinos only, no independent operator skins
- Platform provider: Rush Street Interactive (BetRivers), exclusive five-year contract from December 2023
- State share: about 50% of online gaming gross revenue under the lottery net-proceeds model
- Vendor licences: Technology Provider 4,000 USD; Service Provider 2,000 USD (five-year validity)
- Players: 21+ and physically present in Delaware; a Delaware role does not reach other states
How Delaware Lottery iGaming works
Delaware Lottery iGaming is built around a single state-controlled platform. Instead of licensing multiple operators to run competing online casino sites, Delaware assigns all online casino activity to the Delaware Lottery, which contracts with one platform provider. That platform then serves the state’s three land-based racinos as their shared online extension.
This is a structural fact about how Delaware built its market in 2012, not a judgment on the model. Operators used to a multi-skin state, such as New Jersey or Pennsylvania, need to reset their expectations before they approach Delaware. There is no operator licence application form to fill in, because the Lottery itself is the licence holder.
For a supplier, that means market entry runs through a vendor relationship with the Lottery’s platform, not through an independent gaming licence. The sections below set out exactly what that route looks like.
The law behind Delaware online gaming
Delaware legalized online gambling under the Delaware Gaming Competitiveness Act of 2012, codified at 29 Del. C. §4826. The state launched in 2013, putting it alongside Nevada and New Jersey as one of the first three states with regulated online gaming in the modern era.
Two bodies share oversight. The Delaware Lottery administers and controls the platform, the game catalog, and the commercial terms with its provider. The Division of Gaming Enforcement, under the Department of Safety and Homeland Security, runs background investigations and suitability checks for vendors and key employees.
The statute itself is maintained by the Delaware General Assembly, and any amendment to the licensing structure has to move through that body. So far the core monopoly model has stayed unchanged since 2012.
Who can offer online casino games in Delaware
Three racinos hold the underlying gaming licences that anchor Delaware’s online casino offering: Delaware Park, Bally’s Dover Casino (formerly Dover Downs), and Harrington Raceway & Casino. Each is a licensed land-based casino first, with an online extension layered on top.
Rush Street Interactive holds the exclusive contract to build and operate that online extension under the BetRivers brand. Delaware Park and Harrington run their online casino through the shared BetRivers app. Bally’s Dover operates its own standalone platform. As a result, Delaware online casino players see two brand experiences, even though one provider supports most of the market.
RSI replaced the previous provider arrangement involving 888 and William Hill’s Scientific Games platform. When that contract came up for renewal, 888’s William Hill business withdrew from the request-for-proposal process, leaving RSI as the sole bidder. The soft launch of the new BetRivers-powered platform began on 27 December 2023.
No other brand, and no other operator, currently offers Delaware online casino games. A supplier that wants exposure to this market works with the existing platform structure rather than launching a competing skin.
Vendor and supplier licences: the route in
Because there is no open operator licence, the only formal route into Delaware Lottery iGaming for a B2B company is a vendor or employee licence issued through the Lottery’s procurement process, backed by a DGE background check. Two vendor categories cover most suppliers.
A Technology Provider licence applies to companies supplying platform software, hardware, or core gaming systems directly under contract with the Lottery. The fee is 4,000 USD, and the applicant must post a bond. A Service Provider licence applies to ancillary vendors, typically those billing above roughly 100,000 to 150,000 USD a year. The licence costs 2,000 USD and is valid for five years. A bond is also required. Individual staff working on the Delaware online gaming operation need employee licences. These fall under Key, Gaming, or Service classifications. Fees range from 0 to 500 USD, with validity of two to five years.
| Licence type | Fee | Validity | Who needs it |
|---|---|---|---|
| Technology Provider | 4,000 USD | Bond required, tied to contract term | Platform, hardware, and software vendors |
| Service Provider | 2,000 USD | 5 years | Ancillary vendors above roughly 100,000 to 150,000 USD annual billing |
| Employee licences | 0 to 500 USD | 2 to 5 years | Key, Gaming, and Service staff |
Because vendors contract with the Lottery through a state procurement process instead of a standard licence application, timelines and terms depend on what the Lottery is currently sourcing. A supplier that wants clarity on whether its product category fits Technology Provider or Service Provider status should confirm this directly with the Lottery or through the gaming licence acquisition service before submitting anything.
The exclusive contract and the next RFP cycle
Rush Street Interactive signed a five-year agreement with the Delaware Lottery, running from the December 2023 soft launch. For the length of that term, RSI holds exclusive platform-provider status, and no competing operator or platform vendor can bid for the same role.
When the next RFP opens depends on the Lottery’s own procurement calendar and on how the current contract performs. Operators tracking this timeline should treat it as a procurement question, not a licensing one, and plan for it accordingly.
Delaware Lottery iGaming tax and revenue split
Delaware Lottery iGaming does not use a flat gross gaming revenue tax the way most US states do. Instead, the state applies a lottery net-proceeds distribution model. Under that structure, the state takes roughly 50% of online gaming gross revenue, with the remainder split between the platform provider and the host racinos.
Other verticals within the same lottery framework use different splits, which illustrate how the distribution model works across Delaware’s gaming portfolio. Table games licensees are taxed at 15.5%, plus a 4.5% purse supplement. Sports betting revenue splits 50% to the State, 40% to racetracks, and 10% to purses. Video lottery terminal revenue splits roughly 39% to the State General Fund, 43% to racetracks, 10% to purses, and 8% to vendors.
| Vertical | State share | Other distribution |
|---|---|---|
| Online gaming | Approximately 50% | Remainder to platform provider and host racinos |
| Sports betting | 50% | 40% racetracks, 10% purses |
| Video lottery terminals | 39% | 43% racetracks, 10% purses, 8% vendor |
Recent monthly reporting from the Delaware Lottery puts total casino revenue at roughly 45 to 62 million USD in individual months during 2026. This figure includes both online and land-based revenue. RSI’s first full year on the platform produced a large increase in online gross winnings compared with the prior provider. However, exact multi-year comparisons should be taken from the Lottery’s own published reports.
Online poker and the multi-state agreement
Delaware Lottery iGaming extends to poker through the Multi-State Internet Gaming Agreement, known as MSIGA, which Delaware joined alongside Nevada, New Jersey, and other participating states. MSIGA allows member states to pool online poker player liquidity across state lines, so a small state like Delaware can still offer usable poker tables.
Under Delaware’s single-operator model, online poker runs on the same state platform as online casino, rather than through a separate operator relationship. That keeps poker liquidity-sharing consistent with how every other product on the platform works: one provider, one integration point, one set of technical requirements to meet.
For a supplier building poker technology, MSIGA participation is a relevant factor when estimating table volume, but it does not change the licensing route. Access still runs through the same Technology Provider or Service Provider structure described above.
What a Delaware online gaming role does not cover
A vendor or employee licence tied to Delaware Lottery iGaming does not grant an open operator licence. You cannot use a Delaware credential to launch an independent online casino brand or skin, because that option does not exist in this market.
Players must be 21 or older and physically located within Delaware state lines when they play, verified through geolocation. A Delaware role does not let a supplier or operator serve players in other states; each US state runs its own separate licensing and geofencing regime.
A Delaware vendor licence also does not transfer automatically to a role in another jurisdiction. If your roadmap includes the Delaware online casino market alongside states with an open licensing model, plan each application separately. Relevant comparisons include the New Jersey iGaming licence, the Pennsylvania iGaming licence, the Michigan iGaming licence, and the Connecticut iGaming licence, each of which follows a different structure from Delaware’s single-provider model.
Denied or revoked applicants cannot reapply for five years. Self-exclusion periods for players run one year, five years, or lifetime, and the Lottery enforces them across its platform.
Entering the Delaware market
Given the exclusive RSI contract, most new entrants reach Delaware Lottery iGaming as a Technology Provider or Service Provider supplying the existing platform, not as a new operator brand. Getting the licence category right, and structuring the DGE background check submission correctly, saves months compared with a misdirected application.
DD Consultus advises operators and B2B suppliers on which US jurisdictions fit their current structure, including vendor entry into Delaware Lottery iGaming and other single-provider states. Our gaming licensing compliance and RNG testing and platform consultancy teams can also assess technical readiness before you approach the Lottery’s procurement process.
Book a consultation to review your options: call +356 99408536 or email contact@licencegaming.com.
Frequently asked questions
Can an independent operator get a Delaware iGaming licence?
No. Delaware does not offer an open operator skin licence. The Delaware Lottery holds the online casino licence itself and contracts a single platform provider, so the only formal entry points for outside companies are the Technology Provider and Service Provider vendor licences described above.
Who operates Delaware’s online casino?
The Delaware Lottery, together with the state’s three racinos, Delaware Park, Bally’s Dover Casino, and Harrington Raceway & Casino, runs the online casino market. Rush Street Interactive supplies the underlying platform under the BetRivers brand for Delaware Park and Harrington, while Bally’s Dover uses its own standalone system.
How much does Delaware take from online gaming revenue?
The Delaware Lottery takes roughly 50% of online gaming gross revenue under its net-proceeds distribution model. This differs from a flat gross gaming revenue tax, so the remaining share splits between the platform provider and the host racinos according to the Lottery’s contract terms.
Which company runs the Delaware Lottery iGaming platform?
Rush Street Interactive holds the exclusive platform-provider contract, operating under the BetRivers brand. The five-year agreement began with a soft launch on 27 December 2023, replacing the previous provider arrangement built around 888 and William Hill’s Scientific Games technology.
Can a B2B game or software supplier work in Delaware?
Yes. A supplier can apply for a Technology Provider licence for 4,000 USD if it contracts directly with the platform, or a Service Provider licence for 2,000 USD for ancillary services above the Lottery’s billing threshold. Both routes require a bond and a Division of Gaming Enforcement background check before the supplier can integrate with the state platform.
Does a Delaware online gaming role let you serve players in other states?
No. Players must be 21 or older and physically present in Delaware, confirmed through geolocation at the point of play. MSIGA membership only covers shared online poker liquidity among participating states; it does not extend a Delaware licence or vendor role into any other jurisdiction.
When could the Delaware market reopen to new operators?
That depends on the Delaware Lottery’s next request-for-proposal cycle, which follows the expiry of the current five-year contract with Rush Street Interactive. Until then, new entrants work through vendor licences rather than a new operator contract. Book a consultation with DD Consultus to track this timeline against your entry plan.