Delaware State Lottery has officially announced Rush Street Interactive, Inc as the vendor for Delaware’s online gaming business after a lengthy request for proposals process that began back in January.
The deal between the two has an initial term of five years. It can then be renewed for additional one year terms for an additional five years, pending regulatory approvals. Recent regulator reporting shows June stakes of $37.9 million and revenue of around $1.1 million; one of America’s smallest iGaming markets.
What did RSI have to say about the deal?
Richard Schwartz, CEO of RSI commented: “We are honored to be selected by the Delaware State Lottery selection committee to provide online gaming operations in the First State. This partnership is yet another significant milestone for RSI, as the confidence of a state-backed organization, such as the Delaware Lottery, further validates the trust that lottery officials have in our award-winning online platform and customer service.”
He added: “Building on our proven track record of success in the tri-state area of Delaware, Pennsylvania and New Jersey, where RSI was an early entrant in the first online market in the U.S.,we are honored to collaborate with the Delaware Lottery team and the state’s three casinos to offer consumers who are geo-located in Delaware with safe, convenient, and innovative online gaming experiences”.
Schwartz concluded, “RSI continues to demonstrate itself as a leader in the industry as more and more states across the country welcome online gaming. With our proven and trusted operations, in-house technology, and platform, we are proud to deliver robust value and results to forward-thinking government entities or businesses. RSI is devoted to make thoughtful strides in our expansion and in the successful execution of our approach to delivering best-in-class products and services to our customers.”
Helene Keeley, Director of the Delaware Lottery said in the release: “Rush Street Interactive has established itself as a leading innovator in the industry, and is a respected iGaming and sports betting company. We are impressed not only with RSI’s successes in other jurisdictions, including neighboring New Jersey and Pennsylvania, but also its strong commitment to responsible gambling practices.”
She added: “We look forward to working with the well-respected RSI team. We reviewed proposed bids from other online gaming companies and suppliers, and the combination of experience and commitment to quality products, customer service, and responsible gaming is why we selected RSI. We’re delighted to begin this partnership and have no doubt that Delawareans and the customers of Delaware’s three casinos will be thrilled with RSI’s exciting library of offerings and industry-leading customer service.”
An RFP muddle leaves just RSI
Delaware legalized iGaming back in 2012, making it one of the longest standing iGaming markets in the United States. On initial tender in 2013, 888 was awarded the contract and has held it until the RFP process opened in January. Reports suggest the company pulled out in May, leaving RSI as the only potential suitor.
iGB reports suggest that poor communication from the lottery, a small addressable market and costs associated with the technical specifications prompted 888 and other vendors to withdraw bids.
Further information reported adds that potential bidders had just weeks to reply to a series of complex asks by the regulator. This included a number of integrations for mobile sports betting, despite Delaware mobile sports betting not having been legalized. The tender’s vague wording suggested mobile sports betting capability could be relevant “from the launch of the contract, at some point in the future, or not at all, i.e. outside the scope of this RFP”.
In addition, the RFP sought information about bidders’ experience in managing third party content including live dealer games, but added that it had “no intention of offering these games”.
RSI recently announced the cessation of its partnership with Connecticut Lottery Corporation where it was offering Connecticut sports betting both online and in-person.