Delaware's Disappointment with Online Gambling

As one of the three states to have legalized online gambling within the past year, Delaware expected to see some financial benefits sooner rather than later. However, expectations fell sadly short of the state's projected target of $5 million in revenue.

According to The News Journal, Delaware’s online gambling venture brought in very little revenue for the state, and none for casinos. This is because while actual online gaming in the state brought in $1.2 million (still, a very low number), the state's return after start-up and vendor fees came to a measly $318,000.

What Went Wrong?
State officials say that the poor profit is due to a number of reasons, including a low gaming population, unfamiliar brands, delays in a mobile platform and other technology issues.

The projection for the 2015 fiscal year, which began on July 1, does not look much better. The projected revenue for 2015 is $3.3 million, which is still not enough for the state's casinos to make money, because part of the state's regulations say that Delaware will collect 100% of income for the first $3.75 million made from online gaming. Only after that number has been hit can casinos even dream of seeing a penny.

Don't Count Them Out Yet
Despite the disappointment, Delaware plans to continue with its online gaming venture, and even the casinos are in full support.
“We are patient, “said Ed Sutor, president of Dover Downs Hotel & Casino. “It’s a brand-new product coming to a brand-new country, but I see a light at the end of the tunnel.”

State lottery director Vernon Kirk also commented that number show the users are winning, which is great for business. And so, Delaware forges ahead with cautious optimism.