DE Sports Bettors Losing At Rapid Pace, Still Can’t Help State

• Delaware sportsbooks are bringing in sports betting revenue at some of the highest winning margins in the country.
• Despite the bettors in Delaware’s shaky performances, the state is still far off its revenue projections.
• As the betting handle continues to decrease each month compared to last year, the industry is in need of changes.

DOVER, Del. – Delaware sports betting has revved up over the last three months. While many states with legal sports betting have seen their betting handle increase during the NFL betting season, many haven’t fared as well as Delaware when it comes to the revenue that the sportsbooks hold.

As football is the most popular sport to bet on in the United States, bettors often find their betting strategies working in order to make a profit. Delaware, however, is in a different mindset, as the bettors have consistently given the three licensed sportsbooks something to be happy about during this time.

Delaware Reaping The Benefits Of Bad Sports Bettors

In turn, the state of Delaware has received more money from legal sports betting taxes than in months past, as the sportsbooks have seen winning margins continually exceed 11%. For reference, sportsbooks have averaged a winning margin of around 8.25% over the last five months and just 7.05% since PASPA was repealed in May 2018.

The Delaware sportsbooks have now kept over 10% of all wagers as revenue in five straight months and in nine of the last 12 months. In comparison, New Jersey bettors have not allowed sportsbooks to keep more than 10% since September 2018 and no other state has seen their sportsbooks keep 10% or more in four straight months.

The state government shouldn’t mind though, as the atrocious performance of the bettors in the state has permitted the state to collect more sports betting taxes than expected. Over the last five months, Delaware sportsbooks have sent over $3.1 million to the state in tax contributions.

In September, the state collected over $1 million in tax revenue for the third time in the state’s 18-month reported sports betting history.

Problems For Delaware Sports Betting

Though the state’s bettors are doing poorly, the state is not receiving the ultimate benefit from legal sports betting. In every month compared to 2018, the sports betting handle has decreased year over year.

As little as a 10.7% decrease (June 2019 vs. June 2018) or as much as a 109.5% decrease (July 2019 vs. July 2018) has been seen in Delaware sports betting from last year to now. Furthermore, during the NFL betting season, the monthly betting handles have decreased as much as 74.7% and as little as 42.1%.

Whether this is a direct tie with the state not having mobile sports wagering or the fact that both neighboring states in New Jersey and Pennsylvania have taken a strong share of the US sports betting industry and are poaching the bettors from Delaware is unclear.

Regardless, the state’s sports betting industry may be in trouble – even with the bettors in the state performing at these subpar levels.

Though the state collets 50% of the licensed sportsbooks’ revenue (the second-highest percentage in the nation), better performances from Delaware sports bettors could drown this industry.

Assuming the bettors revert to “average” winning percentages, the state would only be seeing $1-2 million float to their coffers for the entire NFL season. During the other months of the year, the state may only collect an additional $1 million – leaving them well behind their original sports betting taxation projections.

Only time will tell how the industry plays out in the future, but the Delaware state government may need to consider changes to keep its market thriving. For now, it appears the best first step would be to consider the addition of mobile sports wagering.

News tags: Delaware | Deleware Lottery | NFL