Delaware, which was the first state to allow for online casino games and iGaming, could create new regulations for its iLottery operation.
Like most states, Delaware’s lottery is a significant source of revenue. Estimates from the governor's proposed budget said revenue for fiscal year 2026 are set to be more than $248 million. And for next year, revenue will be $252 million. That’s money that goes into Delaware’s general fund.
State Rep. Bill Bush (D-Dover) told the House Appropriations committee Wednesday that as Delaware’s lottery moves increasingly online, the state needs to protect its digital retailers.
“The lottery department is getting ready to move a lot of our sales that take place currently at small stores, such as your Powerball tickets, your Mega Millions, your daily plays–they're all being moved where they can be sold online,” Bush said.
The state launched its iLottery in 2012 and recently expanded its offerings through the app with its longtime partner, Scientific Games. Delaware’s iLottery allows sale of instant tickets online. And in iLottery draw games are set to come online in fall 2026. Bush's HouseBill 335 will ask that iLottery players buy prepaid cards at physical stores to participate in online games.
He acknowledged to the committee that, “the fiscal impact that is out there is large... I just think it's a very, very important thing that we protect our small businesses.”
According to the fiscal note, more than 9 thousand online lottery accounts wagered $8 million through the end of April 2026, generating $821,000 in gross gaming revenue. A small fraction of this money came in through prepaid Web Cash bought at brick and mortars.
According to the fiscal note,the newly expanded iLottery could generate more than $5 million annually, in addition to what the state lottery already earns.
But if HB 335 is implemented, that revenue could be cut to approximately $3 to 4 million annually, according to the fiscal note.
But James Leonard, Director of iLottery with Scientific Games, said the measure misses the mark on the intent of Delaware’s new online expansion.
“iLottery was not designed to replace retail lottery sales,” he said. “It was designed to reachnew playersand engage consumers who increasingly expect digital options, expanding the overall lottery.”
Nationally, traditional lottery participation dipped in 2025. But digital participation in online sports betting and iGaming continued to increase.
Traditional games revenue in Delaware dropped from $250 million in 2023 to $230 million in 2025. During that same iGaming grew to $85 million, approximately 5 times what it was in 2023. And revenue generated from online sports betting grew to $234 million, about 3 times more than revenue in 2023.
Bush's bill cleared the House Appropriations Committee. It now heads to the House floor for a vote.
