Delaware iGaming Licence
What is the Delaware iGaming licence?
Delaware runs online casino gaming as part of its state lottery. First, the Delaware State Lottery Office regulates and conducts the activity, and the games are defined in law as internet lottery operations. Then the state delivers those games through its existing casinos and a single contracted platform.
Delaware was the first state to legalise online casino gaming in the United States, and the market launched on 7 November 2013. Since then, it has operated as a compact, state-run market.
In practice, this means there is no independent business-to-consumer licence to apply for. Instead, a company takes part either by winning the exclusive platform contract or by supplying technology and games into that platform.
Who can hold a Delaware iGaming licence?
The Delaware Lottery conducts online casino gaming, and three existing racinos act as the consumer-facing operators: Delaware Park, Dover Downs, and Harrington Raceway and Casino. Notably, they run the games on behalf of the state and earn commissions, and they do not take out separate online gambling licences.
Because the structure is state-run, a private company does not obtain its own online casino licence. Instead, there are two routes. A company can bid to become the exclusive platform provider for the Delaware Lottery. Alternatively, a game studio or technology provider can gain regulatory approval and integrate its content through the primary vendor.
Meanwhile, players must be 21 or older and physically located in Delaware. If you are considering this market, book a free consultation and our team will map the route that fits your business.
Types of Licences
How companies take part in Delaware
Delaware has a small number of clearly defined roles, and each one works differently.
The exclusive platform vendor
First, the Delaware Lottery selects a single platform provider through a competitive tender. Currently Rush Street Interactive holds that contract, operating through its BetRivers platform after taking over from the previous supplier and launching between December 2023 and January 2024. The contract runs for an initial term of five years, and it can be renewed for up to five additional one-year terms.
Technology service providers and game studios
Next, third-party game studios and technology providers take part by gaining regulatory approval and partnering with the primary vendor to integrate their content. For most suppliers, this is the practical route into Delaware.
The three racinos
Finally, the three racinos serve as the operators of record for players. Because the statute assigns these roles, this part of the market is not open to new entrants.
Licensing Requirements
Delaware iGaming requirements
To begin, the Delaware State Lottery Office reviews and approves the companies that supply the market, along with the technology they provide.
Approval as a technology service provider
A supplier must gain regulatory approval before its content can go live. In addition, integration runs through the primary vendor platform rather than directly to the casinos, so commercial and technical planning happen together.
Player age and location
Operators verify that players are 21 or older. Furthermore, geolocation must confirm that the player is physically located in Delaware at the time of play.
Responsible gaming
Because the lottery conducts the activity, responsible gaming controls and player protection standards apply across the platform and are overseen by the state.
Multi-state poker liquidity
Delaware also takes part in the Multi-State Internet Gaming Agreement, alongside New Jersey, Nevada, and Michigan. As a result, online poker players can share liquidity across those states, which matters for any supplier building poker products.
Company Requirements
Delaware iGaming cost, tax, and revenue sharing
To start, the direct licensing cost for suppliers is modest, because the state conducts the gaming itself.
| Item | Amount |
|---|---|
| Technology service provider licence | $4,000 annual fee |
| Platform vendor contract | Awarded by competitive tender, 5-year initial term plus up to five 1-year renewals |
| Minimum player age | 21 |
Tax rates by product
In addition, Delaware applies different rates depending on the product:
| Product | Rate |
|---|---|
| Internet video lottery games, meaning online slots | Effective rate of about 57% |
| Online table games | 15.5% on licensees, plus a 4.5% purse supplement |
Because the rates differ sharply by product, financial modelling should be done product by product rather than on a blended assumption.
How revenue is shared
Delaware also sets out how proceeds are divided, which is unusual and worth understanding before modelling a deal. Approximately 42% goes to the three racetracks as operator commissions, 40% goes to the State General Fund, 10% supplements horse racing purses, and 7% covers leasing, upgrading, and monitoring the games.
Wider cost of taking part
Beyond fees and tax, budget for incorporation, the compliance function, platform and certification work, legal support, and the commercial terms agreed with the primary vendor.
Benefits
Why suppliers take part in Delaware
The Delaware market in numbers
Delaware runs a compact state-operated online casino market. Specifically, monthly internet gaming revenue reached about $3.9 million in April and May 2024, and it passed $5 million in June 2024 following the transition to the current platform. In addition, the market has grown steadily since that transition.
What taking part gives you
For a supplier or platform provider, Delaware offers a clearly structured route with a small number of counterparties. In particular, it offers:
- A defined supplier route with a low annual licence fee
- A single integration point through the primary vendor platform
- Shared online poker liquidity through the Multi-State Internet Gaming Agreement
- State-run oversight with published player protection standards
- Access to mainstream payment providers and banking that support a fully regulated operation
Get started in Delaware
DD Consultus supports platform providers and suppliers through the Delaware process, including regulatory approval, suitability and disclosure preparation, compliance readiness, and the commercial agreement with the primary vendor. To begin, book a free consultation, or contact contact@licencegaming.com or +356 99408536.
Reviewed by Denitza Dimitrova, Managing Partner. Former Manager for Legal and Enforcement at the Malta Gaming Authority. About the team
Frequently Asked Questions
Common questions about the Delaware iGaming licence.