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Delaware Could Begin Accepting Sports Bets In Coming Weeks

Delaware officials have not given an exact date, but sources said casinos could begin accepting bets in JuneGETTY IMAGES

Delaware Gov. John Carney and Attorney General Matt Denn have found "no legal obstacles" that would prevent the state from "offering single-game betting -- clearing the way for a full roll out in the coming weeks," according to a front-page piece by Scott Goss of the Wilmington NEWS JOURNAL. State officials have not given an exact start date, but sources said that Delaware's three casinos "could begin accepting bets in the first week of June." Delaware Finance Secretary Rick Geisenberger said, "We're starting training next week. Our hope is to get that complete next week and then it's a question of testing software." Goss notes the announcement comes "less than 24 hours after New Jersey delayed the launch of sports betting" at Monmouth Park, which was "slated to begin on May 28." New Jersey lawmakers said that they "wanted more time to put regulations in place." Meanwhile, Delaware's sports betting regulations have been in place since '09, when it "became the only state east of the Rocky Mountains to offer a sports book." Gambling in the state is "currently limited to multi-game betting -- known as parlays -- on pro football." The Carney administration's tentative plan is to allow gambling on the NFL, NBA, NHL, MLB and out-of-state college sports teams "only at Delaware's three casinos." No bets on any in-state sports teams "will be accepted." Geisenberger said that exactly what types of betting will be offered in the first weeks are "still to be worked out" (Wilmington NEWS JOURNAL, 5/18).

START YOUR ENGINES: NBCSPORTS.com's Nate Ryan noted with Delaware moving to implement sports betting, Dover Int'l Speedway is "anticipating it could offer NASCAR betting when the circuit returns in the fall." Dover Motorsports President & CEO Denis McGlynn said, "I can't say for sure yet on if there'll be betting in the fall, but I anticipate they'll want to let us do that." McGlynn added that it was "too early to be sure on whether there would be betting on NASCAR races other than those held" at DIS (NBCSPORTS.com, 5/17).

MOVING CLOSER: In Newark, Brent Johnson reports June 7 is the date both the state Senate and Assembly are "planning to hold votes on new legislation setting the rules for how New Jersey would regulate and tax sports wagering at its casinos and racetracks." Senate President Stephen Sweeney said he expects Gov. Phil Murphy to "sign this right away." Once the bill is passed, Murphy's signature "becomes the final hurdle before sports betting could begin in the state." State lawmakers on Thursday said that casinos and tracks "would not be subject to a customary waiting period -- which usually lasts at least a month -- for final regulations to be established to begin accepting bets" (Newark STAR-LEDGER, 5/18). Meanwhile, the AP's Jeff Amy wrote Mississippi's "sprint toward legalized sports betting has begun." The state Gaming Commission on Thursday "proposed rules to govern sports books at Mississippi's 28 licensed casinos." The public has "25 days to make comments." The commission "could vote on the rules at its next scheduled meeting on June 21, which means casinos could start taking bets in late July" (AP, 5/17).

SCARING OFF BUSINESS: USA TODAY's A.J. Perez reports Pennsylvania is seeking a $10M "licensing fee, along with a state tax of 34% on gaming revenue" from legalized sports betting. By comparison, a Nevada-based gambling entity "pays 6.75% to the state." All states "must pay a federal excise tax, which equates to about another 5%." The total is a sticker price that has "given multiple companies pause, including two that operate gambling establishments" in Pennsylvania. Penn National Gaming VP/Public Affairs & Government Relations Jeff Morris in an email wrote, "We haven't made a final determination on whether to pursue sports betting in Pennsylvania. ... The challenge will be trying to make the 34% tax rate work -- this would be the highest tax rate in the world on sports betting." Perez notes New Jersey is "expected to tax gaming revenue between 8%-10%, and Mississippi, another state that could launch sports gambling in the coming week, will have a tax of 8%." Rush Street Gaming CEO Greg Carlin said that his casino operation outfit "'hasn't made a decision' to launch sports betting under the current terms, although he didn't rule out jumping into the market to keep a competitive advantage if others decide to pounce" (USA TODAY, 5/18).

DO THEY DESERVE A CUT? In DC, Adam Kilgore notes the proposed integrity fees on sports bets have "caused debate in state legislatures and caught the attention of gaming industry insiders." League officials said that they are a "necessary and fair distribution of revenue." But sports betting experts "view them as a desperate request unaligned with the financial realities of sportsbooks." MLB Senior VP/Investigations & Deputy General Counsel Bryan Seeley said, "The point is, it's about more than just integrity. It's about the fact that this betting is on our games. We are the primary input into sports betting on Major League Baseball. We think that we should share in some of the money that's going to be made by bookmakers in offering betting on our sport." Kilgore notes aside from the "influence of lobbying dollars, sports leagues have little means to convince states to make integrity fees part of their laws." They can "state their case and ask for the money, but they have no realistic recourse if states refuse" (WASHINGTON POST, 5/18).

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