Delaware chooses Scientific Games to run sports lottery

Jul 31, 2009 7:31 PM
Staff & Wire Reports | The state of Delaware announced this week it had chosen Scientific Games to operate its state lottery sports wagering network, moving a step closer to offering the first legal sports betting outside of Nevada.

Under terms of the deal, Scientific Games will provide a statewide network of lottery sports wagering terminals at the three racetracks (racinos), connected through a central processing system, with supporting sports book services.

The system will provide communications, monitoring, sports book risk management, and accounting services for the lottery sports wagering operation.

The contract begins in the third quarter of this year, will have an initial term of six years and will provide for four one-year extension options.

Scientific Games is familiar with the Delaware lottery, as it also runs the state’s conventional lottery business.

Delaware plans to have sports betting available for the start of the NFL season, which kicks off September 10.

However, the NFL and other major sports leagues have sued to stop the plan and have asked federal court for an injunction. That request is still pending.

While Scientific Games will provide the "hardware" and technology, it is partnering with Brandywine Bookmaking LLC to manage the bookmaking services – setting the lines, odds and point spreads, as well as managing betting limits. Brandywine Bookmaking LLC is a Nevada-based, independent race and sports book management company, which operates 11 Lucky’s sports books in Nevada.

Scientific Games and Brandywine beat out another bid from Intralot and American Wagering, which owns the Leroy’s chain of sports books in Nevada.

Delaware re-authorized sports betting in May 2009 and is one of only four states grandfathered under a 1992 federal law that otherwise bans sports betting at the national level.

Delaware is a two-hour drive from such metropolitan areas as New York, Philadelphia, Washington D.C., and Baltimore, combining for an estimated target population of at least 30 million.

By way of contrast, Nevada generates sports wagers in excess of $2.5 billion annually from all sources and draws from its population of 2.6 million residents and its tourist population of about 37 million annually.