On June 28, 2012, Delaware Governer Jack Markell signed the Delaware Gaming Competitiveness Act of 2012 into law making Delaware the first state to legalize online gaming within its borders.

Under the new law, online slot machines and casino games such as blackjack and poker will be accessible through current existing Delaware casinos’ websites and the Delaware Lottery Office will offer lottery tickets through the state-controlled website.

Although the law currently limits internet gaming to players within Delaware’s borders, it does provide for expansion to players outside of Delaware, if and/or when, it is determined by the Delaware State Lottery Office that such conduct is “not inconsistent with federal law and the law of the jurisdiction in which the person is physically present.”

State revenues generated from internet gaming will be placed into the State Internet Lottery Fund. Operations and administration of internet gaming will first be paid from that Fund. Thereafter, the first $3,750,000 of proceeds each fiscal year will be transferred to the State Lottery Fund with the remaining proceeds to be distributed to support services for compulsive gambling and provide for additional purse revenue for thoroughbred and standardbred racing in Delaware.

Online gaming is expected to begin in 2013.