The Providence Journal has several stories related to the ongoing saga of 38 Studios. The first story details the testimony of Richard Wester, chief financial officer for 38 Studios in bankruptcy court this week in Delaware.

The state of Delaware has decided to legalize online gambling today. The Delaware State Senate approved the bill by a 14-6 vote to allow online betting in the state. The next stop for the bill is the desk of Gov. Jack Markell (D) for his signature. With state and local governments seeing growing budgets and shrinking revenue, they have warmed up to the idea of allowing gambling both in their cities and online. The law is the second in the country to approve online gambling on a state level.

A trickle down effect is one of the game industry’s biggest fears if the Supreme Court does eventually rule in favor of California in Schwarzenegger vs. EMA, and one politician, known for her anti-game legislation attempts in the past, is chomping at the bit for just such an opportunity.

Delaware Representative Helene Keeley (pictured), a Democrat, attempted to introduce legislation in 2006 that would have placed violent videogames under her state’s obscenity statute. Her efforts sailed through the House, but failed to pass the Senate.