Delaware Lottery Picks Rush Street Interactive for iGaming Partner

Posted on: August 18, 2023, 08:20h. 

Last updated on: August 18, 2023, 08:59h.

Devin O'Connor @CasinoorgDevinO Read More
Expertise: Asia Pacific Gaming, Commercial Gaming, Legislation, Politics.

The Delaware Lottery has a new iGaming partner for interactive slot machines and table games in Rush Street Interactive (RSI).

Delaware Lottery Rush Street Interactive iGaming
The Delaware Lottery’s next iGaming partner is Rush Street Interactive. The Chicago-based gaming company will operate online games on behalf of the state lottery. (Image: Shutterstock)

Rush’s selection this week by state lottery officials wasn’t exactly a surprise, as the Chicago-based gaming firm was said to be the lone bidder for the contract after 888 Holdings withdrew its tender in May.

Lottery reps said previously they hoped to secure a new iGaming partner by November. Rush Street operates online gaming and/or internet sports betting in 15 states through its BetRivers and RushBet platforms.

Rush Street Interactive has established itself as a leading innovator in the industry, and is a respected iGaming and sports betting company,” said Helene Keeley, director of the Delaware Lottery. “We are impressed not only with RSI’s successes in other jurisdictions, including neighboring New Jersey and Pennsylvania, but also its strong commitment to responsible gambling practices.”

Delaware was the first state to legalize iGaming with online slots and table games more than a decade ago. The Delaware Gaming Competitiveness Act of 2012 authorizes the state lottery to partner with an iGaming operator to provide internet games.

Lottery Casinos

Delaware’s three casinos, Delaware Park, Bally’s Dover, and Harrington Raceway, are different from commercial casinos in most other states in that their slot machines are video lottery terminals (VLTs). The three gaming properties operate the terminals on behalf of the state lottery. The casinos retain about 44% of the VLT revenue and direct the rest of the income to the state.

The lottery keeps around 38% of the terminal revenue, 11% goes to the horsemen, and the remaining 7% goes to vendor fees. As for table games, the racinos direct 15% of the win to the lottery and 5% to the horsemen.

Revenue from iGaming operations supports the Delaware General Fund. Anyone aged 21 and older physically located inside the First State can access the online gaming platform.

Rush officials say the company will develop a state-of-the-art online gaming website and app. The Delaware Lottery contract is for an initial term of five years with the possibility of a five-year extension.

“This partnership is yet another significant milestone for RSI, as the confidence of a state-backed organization, such as the Delaware Lottery, further validates the trust that lottery officials have in our award-winning online platform and customer service,” said Rush Street Interactive CEO Richard Schwartz.

Delaware’s iGaming industry is the smallest of the six states where online casinos are allowed. While New Jersey’s online casinos generated gross gaming revenue last year of more than $1.66 billion, Delaware’s iGaming market generated revenue of $136.3 million.

Rush Ended CT Lottery Contract Early

This isn’t the first time a state-backed gaming organization has picked Rush to manage its online operations.

In August 2021, Rush secured retail and online sports betting privileges from the Connecticut Lottery through a competitive bid. Rush agreed to guarantee the Connecticut Lottery a minimum of $170 million during the life of the 10-year contract.

Rush beat out 15 other bids for the sports betting contract, which occurred when the US legal sports betting industry was still new and operators were making big bets to secure market access. Less than three years into the partnership, Rush terminated its Connecticut Lottery pact in March 2023.