Following a slight delay to vote on a bill that would effectively legalize online gambling in Delaware, Senate members pushed ahead late yesterday to approve House Bill 333, which now only needs the signature of Governor Jack Markell to become law.

Having already expressed support for the measure, it is highly unlikely that Governor Markell will veto the legislation (as New Jersey Governor, Chris Christie, did earlier this year), thus making Delaware the second U.S. State to officially implement online gambling regulations. Nevada was the first to have regulations signed into law, and is currently approving operators (most recently Bally Technologies and William Hill) for sustaining an interstate poker network and betting platform.

While Delaware is a long way off from accepting license applications and making approvals, the framework for doing so is all in place. Prompted by concerns from Delaware’s three racetrack casinos that layoffs were in order to mitigate the loss of business resulting from increased competition in neighboring States, such as Pennsylvania and New Jersey, Governor Markell proposed a plan that the State Lottery begin offering online lottery ticket sales and casino gambling, the proceeds of which could be used to offset $7.75 million in annual licensing fees paid by the State’s three casinos, and thus preventing layoffs. The trio currently pays $10.75 million in annual licensing costs, in addition to a higher-than-average tax rate.

Overall, the State is expecting to bring in $3.75 Million during the first six months of launching online gambling services, with additional revenue expected to come through further gambling expansion, such as electronic Keno in bars. The regulatory plan, which only allows Delaware residents physically located within State borders to place wagers online, does permit State Lottery officials to explore compacts with other State’s to share gamblers.

With online gambling expansion also on the table in Maryland, Massachusetts and New Jersey, this does indeed appear to be a feasible option, and could very well turn the Mid-Atlantic region into a epicenter for online gambling. There is no denying that Delaware’s push forward is certainly providing momentum for other State’s exploring online betting expansion.

Source: Wall Street Journal