DELAWARE: Bunting introduces sports gambling bill that would legalize team betting

[clevfan]

Bunting introduces sports gambling bill that would legalize team betting

By Laren Hughes
DelmarvaNow
June 15


A bill was introduced in the Delaware General Assembly May 31 that, if passed, would allow sports gambling in Delaware -- making it the only state east of the Mississippi where sports wagering would be legal.

Under the legislation, businesses could apply for gambling licenses through the Delaware State Lottery office, allowing them to take bets on sport events such as football or baseball games.

The bill, SB 135, is sponsored by state Sen. George H. Bunting, D-Ocean View.

If passed, individuals could place bets on collegiate and professional sports teams with the chance of winning money. The bill does not limit how many buisinesses could hold a license.

Rupert Smith, a Vietnam War veteran and owner of the Delaware Sports Authority Inc., introduced the bill to Bunting and would be one of the first to be licensed if the legislation passes as written.

Smith would not comment on the legislation or his role in it when contacted by The Wave.

The sponsor

Bunting said he was originally against legalizing gambling in Delaware but said this is a great opportunity to compensate for recent and future losses in state revenues.

"It doesn't matter what your financial status is, you can gamble through a bookie," Bunting pointed out. "The state could legalize it and capitalize on it."

According to Bunting, Delaware will lose $100 to $130 million next year with the opening of a new harness racetrack in Chester, Pa. Maryland is also expected to legalize gambling in the near future.

Gambling made its debut in racetracks in the 1990's to bolster the industry and, according to Bunting, the endeavor has proved to be a windfall for Dover Downs, Delaware State Park and Harrington Raceway.

According to Robert Robinson, the attorney who is working on the proposed bill, Delaware is currently facing competition from other states for slot revenue, but legalizing sports wagering would be unique to Delaware and a handful of other states.

He said Delaware is currently one of four states -- the others are Montana, Nevada and Oregon -- and the only state east of the Mississippi that is under a grandfather clause at the federal level which would allow sports betting. "This is a unique program," he said. "It's something a lot of people haven't experienced before."

According to Bunting, Delaware has had sports wagering in the past. "We are in a phenomenal position where we don't have to go to Congress for this matter of re-instituting this," he said.

It is a unique form of entertainment and Delaware has the competitive advantage, Robinson said.

Who Benefits

Robinson said the legalization of sports wagering in local businesses would create revenue for the state and retain money for Medicaid and veteran groups. He said this will compensate the state for a recent $10 billion funding cut in Medicaid at the federal level.

John Mitchell, a Vietnam veteran and former commander of the Veterans of Foriegn Wars, said it would be wonderful if veterans could receive assistance. "It's long overdue," he said. "I'm glad to see the windfall going to support veterans."

However, Mitchell said he has had concerns about gambling revenue going to individuals who have gambling problems.

In addition to supporting Medicaid, sports wagering would also help local buisnesses -- even those who do not take part in gambling. "It will help boost tourism and will bring people from neighboring states," Robinson said.

The money from the issuance of licenses will be placed in the state's general fund, Robinson pointed out. The profits from wagers will be appropriated in the same way the three Delaware racetracks divide their profits from gambling including profits from Dover Downs Slots and Midway Slots in Harrington.

Delaware's Deputy Director of Video Lottery Donald Johnson said Dover Downs, Delaware State Park and Harrington Raceway currently allocate 11 percent of earnings to the horse-owners, 49 percent goes to the track, the state retains 35 percent and 5 percent is appropriated to the slot machine contracts and machine leasing.

Robinson said the Delaware State Lottery will comprise a list of requirements to be met by the owner of the venue before a license will be issued. He said the business may be required to have a separate room, or lounge, where bets can be placed.

"I introduced this legislation to get the discussion moving on this issue," Bunting said. "I expect this will take a number of years until this bill is strongly considered."

[clevfan]

Gambling on sports could bring state top draws
Delaware Wave
June 15

Sports wagering isn't a new issue to the state of Delaware -- the state had a sports lottery in the 1970's -- but it is definitely something that needs further exploration.

The negatives of gambling immediately jump to mind, but certainly, there are some positives involved for sports fans.

In particular, it could mean Delaware as a destination for more major sporting events. While betting on sports isn't ever going to bring a Super Bowl to Frawley Stadium, the First State could become a more attractive venue for sports like boxing.

Because of the draw of wagering on the event, Las Vegas is often the home to many world-class boxing matches. Atlantic City is the east coast's version, but without sports wagering, promoters would have to seriously consider moving events across the ocean to Delaware.

Already, Dover is home to the largest sporting event in the state, hosting the twice-a-year NASCAR races at Dover Downs. With slots already in Dover, imagine a sports book parlor nearby. Wilmington recently lost a major sporting event in the Ladies Professional Golfers Assocation Tour Championship, which used to be held at DuPont County Club, when it moved to Maryland last year.

The state's capitol is also still looking to build an arena near Delaware State University that could be home for several Hornets teams, plus a minor league hockey team. Boxing promoters could very easily find a home there.

Delaware could also become the East Coast host for the Arena Bowl of the Arena Football League. The championship game is played annually in Las Vegas.

Like the legislation to make sports wagering a reality, this will not happen overnight.

But the economic booms created from gambling and, in turn, the marquee events that the state could draw because of it, should weigh heavily in the minds of those who can make betting on sports an actuality.

[jjgold]

I will move there if this passes and set up my operation down there

I hope this goes through

[Eli Kirkland]

This has a decent chance of passing. I have been in touch with the CEO of Dover Downs the past two years. He even sent me the report that was presented to the state's legislation year's ago. It was an absolute joke. They quoted findings from Jimmy The Greek and Lenny Del Genio...not exactly the most valid consultants to have on your side. No wonder it didn't pass. I sent them revisions and thoughts last year on the report which I hope they updated.

They've consistently have had the majority vote with the upper brass (elected officials) however, the only dissenting voice has been the Governor, and she's been the final say.

The reason that it may go this time around is because Delaware has the "Racinos" that have been the only game in town in the northeast (besides Atlantic City) but news that neighboring state's such as Maryland, and I think Pennsylvania, not sure on that one, have passed legislation for slot machines. Now people won't necessarily be going to Delaware to play. They need something unique from the other state's to bring in more revenue. For sure, this would do it.

I'm in contact now with their offices and will report anything different from the general news if I hear something. Remember though, just because they pass it in one place in Delaware, it still has to pass the general vote as well. I don't see anything happening for a little while. Don't hold your collective breaths....yet!

[Bostongambler]

Any good restaurants in Delaware...

[biggame]

Visitdelaware.net says there is no sales tax in the state. Does anyone know how high their state income tax is, or how they rank nationally in overall taxation?

[The Actuary]

Tax friendly state for the most part-at least compared to it's neighbors.


NJ will be next-there is just no way with what is being planned in PA that they do not get other forms of gaming to replace the lost revenue-unfortunately I think it will be state run-high juice crappolla, but never know.

they already have problems in AC with the never ending string of bankruptcies and this summer the room occumpation rates must be terrible as I pd $300 for last July 4th and this one will be abt half-even some places offering $39 rooms mid week in high summer season-used to be unheard of.

the PA politicos are already tossing out gaming table balloons citing no difference to slots and greater employment opportunities.

[biggame]

Actually, I just found it, www.taxfoundation.org lists Delaware as the third lowest rated tax burden state in the nation (48th out of 50). The only states with lower local and state tax burdens are NH and Alaska. My state of TN is 47th, but that's because we don't have a state income tax but local sales tax is 9.25%.

It lists DE as having a state and local tax burden of 8.0%, which must mean their state income tax is an even 8%, since they claim to have no sales taxes.

Interesting.

[neilm]

Delaware is a beautiful place to live in or visit.

My aunt and uncle retired there about a decade ago when my uncle had a boatload of stock options to exercise and didn't want to pay too much tax on them.

They really like it there and stayed and have two places there....a house in Dover and a beach house at the south end of the state, minutes from Ocean City, Maryland....

I go down every couple years and it is a fabulous place to visit with the ocean, nice golf courses, and tax free shopping for my wife...

[Immanuel Kant]

used to vacation in Ocean City Md......at the north end of OC is the state line with Delaware......wife used to drive up to buy shoes for the kids...at the time I believe their sales tax (on certain items was 4%)...Neil you're bang on....very nice place to visit....golf, beach and good eats...cold draft and crabs!

[scott]

This one has wings. Deleware has the countrys higest number of companies incorporating there. Very business/tax friendly. They tried parlay cards before but the state ran it and got buried of course. Now they will let the public handle it and the state will simply regulate and tax it. I think this one will fly, hope so!

TA, NJ can't book sports unless the Feds change the law, not a prayer thanks to Bill Bradley, retired (D) NJ.

Scotty

[jjgold]

Deleware will knock out Vegas

Way more money here on the East Coast

[Scott Landau]

They should have opened for business last Monday.

Heard one local say he's had a football season the last 10 days of bases.

[The Actuary]

Hi Scotty,
Hope things are well.

Quotinq a guy from another board who I think has some good points.

Actually, sportsbetting in NJ has a better chance of happening than you think. When the Bradley Act of 1992 was passed, states with existing sportsbetting (in the form of sports-based lotteries) were grandfathered in. Delaware, Oregon, Nevada, and Montana. However, a second clause gave NJ one year to decide whether they wanted to legalize sportsbetting. However, NJ being Bill Bradley's home state, he had enough pressure on state legislators that NJ was not able to put the sportsbetting referendum on ballots for voters within the year timeframe. There is little doubt that if given the choice, voters in NJ would approve regulated sportsbetting for AC.

However, the US Constitution as interpreted by the Supreme Court clearly states that the Federal Government can pass no law which infringes on the rights of the State Government. Gambling has always been, and will probably always be, a state by state issue. No matter which way the make-up of the court leans, it's a pretty clear cut case that states set their own gambling laws.

This leaves the Bradley Act to be unconstitutional...unfortunately, in the past 13 yrs, nobody has challenged that. However, late last year, a move in the NJ legislature began which would challenge the constitutionality of the law and if successfully repealed, would pave the way for sportsbetting in NJ. Among pressures being felt in NJ to protect their gambling income are the aforementioned slots in PA and also rumors of sportsbetting being legalized in Delaware (one of the grandfathered states).

ComputrBob said it would be a long fight to challenge constitutionality...that's incorrect. NJ simply needs to pass a law allowing sportsbetting and the challenge is instantly escalated.

The major hurdles left to clear for NJ beyond the court fight is pressure from the NFL and NBA, both of whom believe sportsbetting is ruining their sports. The NBA threatened to pull the Nets out of NJ if they legalize sportsbetting...then Jay-Z bought the team and the Brooklyn Nets look like a reality. Next the NFL threatened similar against the Jets and Giants...however, since the Jets are most likely moving and neither team is called the NJ Jets or Giants...I don't think that bluff holds much weight.

I think the casinos believe it could happen as well, after all, Boyd made Joe Lupo the VP of Operations at the Borgata in AC. Lupo did a very good job of managing the Stardust sportsbook for a number of years.

[jimmy the greek]

why not ontario, screw the raptors