Caesars Interactive can host Delaware lottery games online

The state Division of Gaming enforcement has approved Caesars Interactive Entertainment to host Internet gambling content from its Atlantic City server for the Delaware state lottery.

The agreement announced Thursday will permit SG Interactive, a division of Scientific Games, to provide game content from servers located in Caesars' data center in Atlantic City to the Delaware Lottery's online gambling platform. These slot games will only be available to Internet gamblers located in Delaware.

"This arrangement exemplifies a great collaborative effort between the Delaware Lottery, the New Jersey Division of Gaming Enforcement, Scientific Games, and Caesars Interactive Entertainment," said DGE director David Rebuck.

The arrangement actually went live on Monday but was not announced until Thursday to see how things went in the early going. It is the first such arrangement between states with Internet gambling. Currently, only New Jersey, Delaware and Nevada have legalized online betting.

Marco Ceccarelli, senior vice president and chief information officer for Caesars Interactive, said "We are happy to do our part assisting regulators in New Jersey and Delaware and appreciate their progressive and innovative work to help continue to grow and push the regulated online gaming market forward in the United States."

New Jersey began offering Internet gambling in November 2013. Since then, its gambling regulators have sought interstate compacts with other jurisdictions to broaden the appeal and reach of internet gambling.

The three states that currently offer Internet gambling won a collective $135 million last year. Earlier this year, Morgan Stanley estimated the nationwide online betting market at $2.7 billion by 2020, down from an initial estimate of $5 billion. It predicted 15 states will have legalized Internet gambling by 2020.