Delaware Lottery Launches Online Sports Betting With The Transition To BetRivers Powering The State’s New Online Casinos & Online Sportsbooks
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Insights
The launch of Delaware's first online sportsbooks and the relaunch of its online casinos represent a significant milestone in the state's gaming industry, which is likely to have a substantial impact on the market dynamics within the region. With the growing trend of digitalization in the gaming sector, this move by the Delaware Lottery, in partnership with Rush Street Interactive, Inc. (RSI), could potentially capture a significant share of the market, especially considering the convenience and accessibility offered to consumers.
By analyzing similar ventures in neighboring states like New Jersey and Pennsylvania, it is evident that the integration of online sports betting and casino platforms can lead to increased revenue streams and customer engagement. Given RSI's experience and success in these markets, there is a strong indication that the company's expansion into Delaware could follow a similar trajectory, potentially boosting its stock performance and market valuation.
However, the success of this initiative will heavily depend on user adoption rates, the competitive landscape and regulatory developments. Investors should monitor the performance metrics post-launch, such as user growth and average revenue per user (ARPU), to gauge the initiative's success and its impact on RSI's financial health.
The regulatory environment for online gaming in the United States is complex and varies by state. Delaware's decision to expand its iGaming offerings through the Delaware Gaming Competitiveness Act of 2012 has positioned it as a pioneer in the online gaming space. The partnership with RSI, a company with a robust compliance record and commitment to responsible gaming, is likely to be viewed favorably by stakeholders concerned about regulatory risks.
RSI's selection through a public Request for Proposal (RFP) process and the initial five-year term with potential extensions suggest a stable and potentially long-term partnership with the Delaware Lottery. This could provide RSI with a reliable revenue stream and enhance its reputation as a trusted operator in the eyes of investors, potentially influencing the company's stock positively.
It is important for stakeholders to consider the legal and regulatory implications of such partnerships, as changes in legislation or enforcement priorities can have significant impacts on the operations and profitability of companies like RSI.
The introduction of online gaming platforms by RSI in collaboration with the Delaware Lottery is poised to be a strategic revenue driver for the company. By entering the Delaware market, RSI is not only diversifying its geographical footprint but also leveraging its existing technological infrastructure and gaming expertise to tap into a new customer base.
From a financial perspective, this expansion could enhance RSI's earnings before interest, taxes, depreciation and amortization (EBITDA) margins due to the scalability of online platforms. Additionally, the company's investment in state-of-the-art gaming content and customer service could lead to a higher customer lifetime value (CLV) and reduce churn rates, contributing to long-term financial stability.
Investors should pay close attention to RSI's quarterly financial reports following the launch to assess the impact on the company's revenue and profit margins. It is also crucial to analyze the market share captured by RSI in Delaware in comparison to its competitors, as this will provide insights into the company's competitive advantage and operational efficiency.
CHICAGO and DOVER, Del., Jan. 03, 2024 (GLOBE NEWSWIRE) -- Following a successful soft launch on December 27, the Delaware Lottery today announced the launch of its first online sportsbooks along with the relaunch of its three online casinos (Delaware Park, Bally’s Dover Casino, and Harrington Raceway & Casino), ushering in a new era of online gaming in the First State. The new online casinos and online sportsbooks are powered by Rush Street Interactive, Inc. (NYSE: RSI) (“RSI”), a leading US-based gaming company that operates under the BetRivers brand. In addition to the introduction of online sports betting in Delaware, the State’s three casinos now offer a revamped array of exciting new online casino games. Customers across Delaware, aged 21 and older, can place bets on all mobile devices, tablets, desktop and laptop computers.
“We are thrilled to begin this historic and much-anticipated launch of the new online sportsbook and casino with the Delaware Lottery and bring our award-winning product to Delaware,” said Richard Schwartz, Chief Executive Officer of RSI. “With our extensive offering of gaming content, wide range of deposit and withdrawal methods, real-time cash-out approvals, and best-in-class customer service, Delaware customers are going to love the convenience of wagering on their favorite sports, slots, and table games from anywhere in the state.”
The online sportsbook, powered by BetRivers, offers bettors a wide array of wagering options on professional and collegiate leagues, games, and players, including spreads, moneylines, player props, futures, same game parlays, and more, all delivered through an engaging and easy-to-use website and app.
Selected through a public RFP process earlier this year, RSI will provide state-of-the-art online gaming for the Delaware Lottery for an initial term of 5 years, with extensions at the discretion of Delaware Lottery. The Delaware Park and Harrington Casino & Raceway sites are accessible through the BetRivers multi-state app and website while Bally’s Dover Casino offers its own standalone app and website.
“RSI’s successes in other jurisdictions, including neighboring New Jersey and Pennsylvania, are impressive, along with the company’s overall reputation and experience,” said Helene Keeley, Director of the Delaware Lottery. “RSI’s commitment to responsible gaming, quality products, breadth of gaming content and customer service are key reasons we are so excited to partner with them. “
“We are honored to collaborate with the Delaware Lottery team and the state’s three casinos to offer consumers in Delaware a safe, convenient, and innovative online entertainment experience,” added Mr. Schwartz. “The launch into Delaware builds on our proven track record of success in the Mid-Atlantic Region of Pennsylvania, Maryland and New Jersey, where RSI has shown that online casinos and sportsbooks complement each other, and we continue to set new records.”
Delaware was the first U.S. state to successfully launch intrastate iGaming in 2013 including online slots, blackjack and video poker following the passage of the Delaware Gaming Competitiveness Act of 2012 by the General Assembly.
“We have no doubt that Delawareans will enjoy the ability to play their favorites slot titles on their mobile phones, as well as back their favorite teams,” Ms. Keeley continued. “Together RSI and the Delaware Lottery are devoted to successfully delivering best-in-class products and services to our customers.”
About Rush Street Interactive
RSI is a trusted online gaming and sports entertainment company focused on markets in the United States, Canada and Latin America. Through its brands, BetRivers, PlaySugarHouse and RushBet, RSI was an early entrant in many regulated jurisdictions. It currently offers real-money mobile and online operations in fifteen U.S. states: Pennsylvania, Illinois, New Jersey, New York, Ohio, Delaware, Michigan, Indiana, Virginia, Colorado, Maryland, Iowa, West Virginia, Arizona and Louisiana, as well as in the regulated international markets of Ontario, Canada, Colombia and Mexico. RSI offers, through its proprietary online gaming platform, some of the most popular online casino games and sports betting options in the United States. Founded in 2012 in Chicago by gaming industry veterans, RSI was named the 2023 EGR North America Awards Customer Services Operator of the Year, the 2022 EGR North America Awards Operator of the Year, Customer Services Operator of the Year and Social Gaming Operator of the Year, and the 2021 SBC Latinoamérica Awards Sportsbook Operator of the Year. RSI was the first U.S.-based online casino and sports betting operator to receive RG Check iGaming Accreditation from the Responsible Gaming Council. For more information, visit www.rushstreetinteractive.com.
About the Delaware Lottery
Since the start of operations in 1975, the Delaware Lottery has contributed
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. RSI's actual results may differ from their expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, RSI's expectations about its partnership with the Delaware State Lottery and the anticipated products and services made available in connection with that partnership. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside RSI's control and are difficult to predict. Factors that may cause such differences include, without limitation, changes in applicable laws or regulations, unanticipated product or service delays, and other risks and uncertainties indicated from time to time in RSI's most recent Annual Report on Form 10-K, including those under "Risk Factors" therein, and in RSI's other filings with the SEC. RSI cautions that the foregoing list of factors is not exclusive. RSI cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. RSI does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.
Contacts
For RSI
Media:
Lisa Johnson
(609) 788-8548
lisa@lisajohnsoncommunications.com
Investors:
ir@rushstreetinteractive.com
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