In a report that was published by the Delaware Lottery, it was announced that the earnings made by casinos across the state had declined over the course of July with the potential cause for that being the player’s easy access to Delaware online casinos.
The report revealed that $34.8 million in revenue had been generated last month, resulting in a 4.5% decline year-on-year, following the $36.4 million that had been earned over the same month in 2024.
Within those findings, three casino establishments were shown to have experienced a decline. These included Harrington Casino (7.2% decline as revenues dropped from $7.8 million to $7.2 million); Delaware Park (4.3% decline), and Bally’s Dover, which had a 3% decline across revenues generated.
The report also revealed a general decline across slots, while table games had experienced an increase at each site, except for Harrington Casino.
What contributed to the revenue decline?
The 4.5% decline that Delaware experienced in July isn’t an anomaly. It’s something that has been experienced over the course of 2025. April and May saw declines, although they were only 1.7% and 2%, respectively. Still, various factors can potentially help to explain why this has happened.
Online gambling on the rise
The rise of online gambling could be highlighted as a potential cause. Players in the state now have access to several Delaware online casinos, where they can play a variety of games using sweepstakes casinos, including many of the same types, obtain realistic experiences, and enjoy convenience. They can use crypto to play with options for privacy and added security, allowing them to enjoy alternative options.
Additionally, consumer behavior has shifted, with many gamblers preferring online platforms over in-person casino experiences, further eroding physical casino revenue. iGaming revenue more than doubled year-over-year (an increase of over 115%), driven by aggressive promotional campaigns and easier access to online gambling. With more players turning to online gambling, the revenues being earned by physical locations are declining.
Increased Neighbor Competition
If that isn’t the only reason for the drop in revenues being earned, Delaware casinos have faced mounting challenges from casinos in neighboring states, leading to market share loss. Locations like New Jersey’s Atlantic City and Maryland aren’t too far for residents to travel to, where casino gaming is more prominent. In those states, they have more options to explore, which may attract people to make the trip across state borders and take their money with them.
Pennsylvania is another popular option for residents of Delaware, with the state being among the leaders in the East of the US. Michigan and Connecticut are also on the rise, as they continue to implement more favorable regulations, which can promote player safety.
Favorable Gambling Taxes Elsewhere
Gambling taxes can also be at a favorable rate for players in these states. Although not as high as New Jersey’s 10.6% limit, Delaware does feature a higher rate of tax compared to other states. It is currently 6.6%. Casino winnings are fully taxable under state income tax.
In comparison, Pennsylvania is just 3.07% across the state, although these can include specific cities with local taxes (for example, Philadelphia is 3.79%). Still, with a short commute to Pennsylvania, players are choosing to save around half of their money in taxes that must be paid to the IRS on any winnings that are earned.
Changes in Foot Traffic
It’s possible to argue that there isn’t much that Delaware can do about the decline, as foot traffic at U.S. casinos, including those in Delaware, continues to fall. Latest figures have highlighted that national casino visitation is down by 5.4% year-on-year as of August 2025, indicating a broader trend of declining in-person play.
The availability to play online has been a large contributor, as players can stay home and enjoy gaming sessions conveniently. Indeed, when disposable income is on the rise across the state (median household income was $85,860 in January 2024 and expected to rise to $86,340 for 2025), convenience clearly appears to be favored.
Will Delaware “recover”?
While there has been a continual decline in terms of revenues being generated by land-based casinos in Delaware, the figures are still strong. However, the decline is perhaps a sign of the times and the changing of attitudes by players.
The industry may need help from the state’s administration to help it “recover”, such as reducing the rate of tax payable or introducing more legal options, as this could help keep residents ploughing money into the casino coffers. This could then help increase state revenue, which could have a significant impact on all residents and help boost Delaware even further.
It’s an interesting time for the state, but it’s one that could witness a few positive changes if particular actions are made.
