Media reports indicate that Rush Street Interactive (RSI) and 888 were competing for the tender to power Delaware’s online casino and poker offering, but RSI is now the only candidate left bidding for the opportunity.
Sources close to the process suggest that 888 faced delays and challenges, leaving bidders with limited time to respond to complex requirements. These requirements included integrations for mobile sports betting, although state laws only allow in-person wagering.
In 2023, efforts to regulate mobile betting progressed during the legislative session but ultimately failed to pass, resulting in changes to the tender process. In 2013, 888 won the tender to power the Delaware Lottery’s igaming offering. It currently operates online casino and poker for the lottery, along with a retail sportsbook powered by OpenBet.
RSI is now the sole competitor as 888 withdrew its bid in May. Reasons behind 888’s decision include a lack of communication from the lottery, a small addressable market, and the costs associated with technical specifications.
The request for proposals (RFP) issued in January sought a vendor capable of providing online sports betting, icasino, and poker, despite the illegality of such offerings in the state. The RFP remained uncertain about whether the partner could launch online betting in the future.
Delaware currently forms part of 888’s interstate poker network, which connects the state with New Jersey, Michigan, and Nevada. If Delaware is removed from that network, rules may need to be rewritten. The go-live date for the new igaming offering has not yet been confirmed.
Brendan Bussmann of B Global Advisors suggests that Delaware’s betting and igaming framework may need to be reevaluated. He argues that a fresh start could be beneficial to achieve stakeholder expectations.
Despite being the first state to launch sports betting after the repeal of PASPA, Delaware only allows in-person betting and does not have mobile wagering. While igaming is available through the state’s three casinos, it is a relatively small market.
If RSI is announced as the new business powering the Delaware Lottery’s igaming offering, it will not be their first lottery partnership. RSI previously won a tender to power mobile and retail sports betting for the Connecticut Lottery but began to wind down that partnership in March.
