Are sweepstakes casinos allowed in Delaware?
Sweepstakes casinos in Delaware are not clearly authorized, and cash-redemption play is higher-risk and commonly restricted. Delaware’s online wagering posture stays tied to narrow, Lottery-centered channels, which makes many private “casino-style + cash-out” models a poor fit in practice.
Recent legislation around online wagering framed mobile sports betting as an “internet sports lottery” under the authority of the Lottery Director, with a licensing structure and state oversight baked in.[1] No explicit statewide sweepstakes-casino authorization is identified here.
What’s going on in Delaware right now
Recent public policy activity highlighted “internet sports lottery” mechanics and Lottery-run online wagering details rather than opening a lane for sweepstakes cash-outs.
- House Resolution 22 extended the deadline for an Internet Sports Lottery Legislative Working Group to deliver recommendations (from June 30, 2023 to December 1, 2023).[2]
- Legislative language around internet wagering stayed inside Lottery terms, rather than creating a separate authorization track for private sweepstakes casino platforms.
Gambling in Delaware in 2026
Delaware’s gambling market centers on state oversight and state-linked operations. Lottery products and Lottery-connected gambling options shape most of what is available, including how online casino-style play and sports wagering get structured.
- Lottery: Core statewide gambling product and the framework used for several online wagering discussions.
- Video lottery and racetrack casino partners: The state’s brick-and-mortar casino footprint runs through a small set of racetrack-linked properties.
- Sports betting: Typically described through “sports lottery” framing rather than broad commercial sportsbook licensing.
- DFS: Often treated as a separate category from casino wagering when evaluating risk and eligibility.
- Tribal gaming: Not part of the picture in Delaware under the framing used here.
Why some online casinos block Delaware players
Delaware frequently appears on restricted-state lists because the state’s online wagering lane is tightly connected to Lottery oversight. For sweepstakes-style sites, the friction usually shows up at redemption, not at sign-up.
- Narrow channel problem: When online wagering is structured around Lottery authorization, private cash-redemption casino-style models can look out of step, so operators choose to avoid the argument.
- Common restriction patterns: (1) full geoblocking, (2) accounts can play but redemptions are disabled, or (3) only “free” play that never converts into prizes.
- Cost-benefit: Even if a platform believes its sweepstakes structure fits, the compliance work may not feel worth it for a smaller state footprint.
- Inference: Some payment and risk teams treat Delaware as high-friction for cash-out sweepstakes models because online wagering policy discussions stay anchored to Lottery-run frameworks.
Sweepstakes winnings and taxes in Delaware
At the federal level, gambling-style winnings and prizes are typically treated as taxable income, even when no Form W-2G shows up. The IRS emphasizes reporting winnings, tracking records, and handling losses separately (subject to limits and filing rules).[3] Not tax advice.
- Keep a simple log: date, platform, prize type, amount redeemed, and any screenshots or statements.
- Save redemption confirmations and any year-end summaries the platform provides.
- Assume state tax reporting may apply and keep documentation organized before filing season.
- If anything feels unclear, get help from a preparer familiar with gambling-style income.
Responsible play in Delaware
Delaware Gaming Enforcement lists problem-gambling support resources, including the Delaware Gambling Helpline.[4] If gambling stops feeling manageable, reaching out once can be a good first step.
- Delaware Gambling Helpline (Delaware Council on Gambling Problems): 1-888-850-8888, deproblemgambling.org
- National Council on Problem Gambling: 1-800-522-4700, ncpgambling.org
- Gamblers Anonymous: gamblersanonymous.org
- Gam-Anon (family support): gam-anon.org