HB 365 Summary

• Authorizes the Delaware Lottery Director to establish and regulate an Internet sports lottery by licensing qualified operators who must enter into market access agreements with existing video lottery agents.

• Each video lottery agent may partner with up to 2 Internet sports lottery operators; operators pay a $500,000 initial licensing fee for a 5-year license and $250,000 for renewal periods.

• Licensed operators must return 18% of adjusted gross sports lottery receipts monthly to the State and contribute 1.5% of receipts to horse racing purses, with additional contributions required if total purses fall below historical levels.

• State proceeds are allocated first to Lottery Office administrative costs, then the greater of $400,000 or 3.5% to substance abuse and mental health treatment programs, with remaining funds transferred to the State Lottery Fund.

• Directs the Lottery Director to issue a Request for Applications within 75 days and award licenses within 150 days of enactment; expands sports lottery definition to include amateur and electronic ("e-sports") events while prohibiting wagers on Delaware college sporting events.