Delaware Confines Casino Gambling to Three Racetracks

Delaware legalized video lottery, the state's term for casino-style slot and table-game gaming, in the 1990s, but froze eligibility to operators who already ran horse racing. Under 29 Del. C. § 4805(b)(13), the Director of the Delaware Lottery must "license as video lottery agents each person, corporation or association which, in 1993, held either a horse racing meet pursuant to Title 3 or Title 28 or a harness horse racing meet pursuant to Title 3" and who meets the Director's fitness and background standards. That test fixed the eligible operator list at three tracks: Delaware Park (thoroughbred), Dover Downs, and Harrington Raceway (harness), plus any successor who buys one and separately qualifies.

Section 4819(a) then pins the physical footprint: video lottery machines, sports lottery machines and table game equipment "shall only be located within the confines of an existing racetrack property in this State" that held that 1993 meet, "and/or such immediately adjacent property or properties that are owned by, or immediately adjacent properties that may be acquired by," the licensed agent. The same subsection bars machines from any "hotel, motel or other overnight sleeping facility" even on licensed grounds. A change of ownership exceeding 20% automatically terminates the license 90 days later unless the new owner separately qualifies under § 4806(a)(1)-(4) and § 4806(b) and the Director approves.

For zoning purposes, this means no county or municipal government can approve a freestanding casino anywhere in Delaware, and no fourth track or commercial site can add video lottery or table games without the General Assembly amending the eligibility class, it has not been reopened since 1993.

Locating video lottery machines or table game equipment outside the confines of a licensed racetrack property, or inside a hotel/motel on that property, violates § 4819(a) directly. The Director of the Delaware Lottery Office administers licensing under 29 Del. C. ch. 48 and can condition, suspend, or revoke a video lottery agent's license for noncompliance with § 4805 or § 4819. There is no local zoning path around this: a county or municipal government cannot permit casino gaming by variance, conditional use permit, or ordinance; only a statutory amendment can add an eligible site.