Don’t forget that it was at this same time that the US was experiencing the great depression. The aim was to legalize gambling activities so that the state could generate revenues in tough economic times. It was until 1933 that a commission was eventually set up to oversee and license betting on horse racing. Gambling on the horses wasn’t actually legal in Delaware for a couple more centuries though, and although during these puritanical times gambling remained extremely popular, placing a bet on the horses was always done in the shadows. The first race-track established way back in 1760, almost three decades before Delaware became the first US state.
The state of Delaware (DE) has a long history of gambling, going as far back as colonial times. Gambling History in the US State of Delaware