Maryland Regulators Deny Request to Ease Sports Betting Promo Rules

Maryland Lottery Gaming and Gaming Control Agency (MLGCA) recently shot down the numerous proposals by other key players in the sector seeking to have more relaxed rules on adverts. In a move that likely won’t be received well by the sportsbooks in the Old Line State, all of the proposals by the industry players have been denied.

Having just clocked the half-year mark, Maryland’s online gambling scene is still in its infancy. And so, the industry, in its proposal, felt that easing the rules related to promos would allow them to reach a wider audience.

48-Hour Review Window For Promotions

Under the current stipulations, Maryland-licensed sportsbooks must submit descriptions, including terms and conditions of any offer they want to promote, at least two days before rolling out that plan. The purpose of this rule is to enable the MLGCA to review the offers and ascertain that they are appropriate and do not pose any harm to the target audience.

While this may seem like a fairly reasonable request by the regulator, it is also vital to note that it is relatively uncommon in other states that have legalized online sports betting and may present a bureaucratic hurdle to the sportsbooks and other players in the Maryland sports betting scene.

In their proposal to the MLGCA, sportsbook officials argued that more reasonable terms should be introduced, especially considering that the sports wagering market isn’t rigid. This means that promotions can be developed at any time. The statement from oddsmakers opposed to this regulation reads in part:

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“The submission of promotions prior to advertising/marketing limits the ability to adequately consider promotions because of unknown variables which often accompany events that are effective for sports bettors.”

The operators also argued that this stipulation prevents them from readily accessing the local market. Take, for example, in other states, sportsbooks are allowed to almost immediately launch promos of events that they may not know are coming up. This puts the Maryland sportsbooks at an immediate disadvantage because they have to wait 48 hours.

Free Bets Contention

Another regulation that has caused a lot of arguments in the industry is the offering of ‘free’ or discounted wagers in a bid to attract new customers. Such promotions, which are often loved by sportsbooks often advertised with much pomp and grandeur. While they may be a quick way to attract the masses to the sportsbooks in other states, Maryland regulators have so far made sure that they are highly scrutinized before being given the go-ahead.

The recent request by Maryland sportsbooks included proposals to increase the capacity of such promos without much scrutiny. Industry giant DraftKings spearheaded the appeal seeking to remove the cap on the number of free bets a sportsbook can offer annually. The cap is tied to a revenue-based formula focusing on each sportsbook’s taxable revenue in the previous year.

Striking a Delicate Balance

While the regulator has denied the recent proposals, it does not mean that the avenue for talks between the parties involved in Maryland is closed entirely. The recently-denied submissions were all under a spreadsheet named the ‘Collective Regulation Change Requests.’ This spreadsheet essentially summarizes all the proposals brought forth by licensed operators and sports betting equipment suppliers.

Each year, the MLGCA invites proposals from industry players to table suggestions about what needs revision. And even though the regulator did not give reasons for declining the recommendations, the agency’s director John Martin told The Sun that it sought to strike a balance for an environment where sportsbooks and bettors prosper. Mr. Martin further remarked:

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“We’re eager for Maryland’s sports wagering industry to thrive and generate funding for education, and we’re also mindful of consumer protections. We provide guidance to sportsbook operators so that they may bring a variety of promotions to the market. At the same time, we feel that reviewing the details of promotions before they launch is a reasonable step that’s in the best interests of consumers.”

The Sports Betting Landscape in Maryland So Far

Wagering at Maryland brick-and-mortar casinos commenced in 2021, whereas online mobile sports betting began just this past November. Maryland’s industry has made giant leaps in this short period, quickly shooting into the U.S.’s top 10 betting states. Up to April this year, Marylanders have spent more than $1.5 billion in sports wagering cumulatively.

In the same period, the state has gained more than $14 million in taxes, a figure that will primarily be channeled toward funding public education. Of course, it’s no surprise to anyone that the activity is thriving in a sports-rich state boasting of professional sports teams like the NFL’s Baltimore Ravens, the MLB’s Baltimore Orioles, and the NFL’s Washington Commanders.

Is a Probable Solution In the Works?

The most feasible solution for the concerns raised by the sportsbooks would be to attain a middle ground with the MLGCA. However, judging from the firm response by the regulator, that compromise is highly unlikely to be met any time soon.

However, a good scenario for this would involve both parties coming up with a wider variety of promotions for bettors to choose from. These offers would, however, come with a very specific set of rules that are pegged with stringent punishments should they be contravened. Unfortunately, as things stand, there seems to be little to no wiggle room in these negotiations.