Delaware Scrambles After Casinos Denied Sports Gambling
An unexpected verdict by a federal apeals court has left Delaware revenues in the lurch, as not only is single-game sports betting denied to state casinos, but investment by the state and the gaming venues on the sports betting program appears to have been wasted. The decision by a panel of judges representing the Third Circuit Court of Appeals to bypass the presented question of an indictment and rule against the state based on federal law leaves Delaware staring at a multi-million dollar funding gap.“What the decision will end up costing us, we don’t know yet, and we haven’t decided yet if we will appeal," said a spokesman for Governor Jack Markell. "There are many millions of dollars at stake here."
Not only lost anticipated revenue will bedevil the Delaware budget process, but legal fees and preliminary advertising and investment in physical preparations will cost the state and its three licensed casino millions.
Further, the court's ruling added confusion to an already clouded legal situation. Casino managers like Dover Downs' Ed Sutor say they have spent millions to convert space to feature sports betting, and now they don't have a clue what they are allowed to do.
"There are plenty of questions in regard to specifics," Sutor told the Cape Gazette. "Can we offer hockey or basketball betting? We just don’t know yet."
“The court made a rather unique on-the-spot decision, which I think surprised both sides: sports franchises and the state,” Delaware State law professor Sam Hoff told the paper.
As if federal laws regarding gambling were not muddied enough, this latest precedent seems likely to obfuscate issues even further. And the loser is the public, which indicated a desire for sports betting, and Delaware, which desperately needed the revenue source.
