Delaware to allow online gambling

Democratic Governor Jack Markell signed the Delaware Gaming Competitiveness Act of 2012 into law the morning after the bill passed the state Senate on a close vote that reflected opposition from lawmakers who believe expanding gambling to the digital realm will expand the social ills associated with it.

Proponents hailed the measure as a viable way to help preserve the state's embattled casino industry, which is facing aggressive competition from new venues in the neighboring states of Maryland and Pennsylvania. "We're talking about a couple thousand jobs," Markell said. "The competitive landscape for this industry has changed dramatically."

Online slot machine play and casino games such as blackjack and poker will be accessible through each Delaware casino's website and controlled centrally by the state Lottery Office. Delaware lottery tickets also will be offered for sale on a state-run website.

Federal law limits online gambling to players within the state's borders, which will be verified using geolocation software. The state hopes to launch online gambling in 2013 and intends to make betting available on a variety of digital devices including smart phones and tablets.

Other states already offer lottery ticket sales via the Internet and Nevada is moving toward the implementation of online poker play, but Delaware is the only state so far to legalize comprehensive online casino gaming.

The legislation sets aside a portion of the expected profits from online gambling to offset us$ 3.75 million in licensing fees currently paid by Delaware's three casinos, with the caveat that the venues use those savings to fund new marketing efforts or capital expansion projects.
Casinos in Delaware employ about 2,500 people and legalized gambling generates more than us$ 250 million annually in state tax dollars. "We can help protect the jobs and this revenue source for our state," said Senate President Pro Tem Anthony DeLuca, the lead Senate sponsor of the bill. "We can keep Delaware at the forefront of developing new and better gambling options.," he said.

The Department of Finance estimates the new gambling offerings will generate us$ 7.75 million in revenues for the state in fiscal 2013.