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Legal Sports Betting is Coming to Maryland on June 1st
By Jeff Osienya May 20, 2021 LegalityGov. Larry Hogan of Maryland signed a new sports betting bill into law to pave the way for legal sports betting in the state. The law takes effect on June 1st, and over 100 licenses will be awarded to different entities statewide.Last year, Maryland was one of a handful of US states whose residents overwhelmingly approved gambling expansion regulation measures in the November ballot. Within six months after state residents gave sports betting and event wagering the green light via a 66.3% vote, legislators worked like oiled pistons to draft a working law. Finally, on Tuesday, May 18th, Governor Larry Hogan of Maryland officially signed a sports betting bill into law.
Legislators then passed the sports betting bill in nearly unanimous vote margins with a 130-9 approval in the House Chamber on March 11th. Come April 12th, on the final day of the session; the Senate okayed the bill in the afternoon with a flawless 47-0 vote margin after a slew of significant amendments. Later that evening, the House of Delegates followed suit and gave the gaming expansion bill a thumbs up via a 122-6 vote.
From there, the only approval that remained was the governor’s signature that has come a month later. After Maryland lawmakers passed the sports betting bill last month, pending Governor Hogan’s signature, the baton was handed to the Maryland State Lottery. The lottery body started developing a regulatory framework right away and appointed a panel of commissioners to oversee the process.
The Legal Sports Betting Law Takes Effect in Two Weeks
It’s worth pointing out that lawmakers okayed the sports betting law in such a short timeline because they tabled it as an ‘Emergency Bill.’ And according to Maryland state law, a bill passed as an emergency bill comes into effect as soon as it gets the governor’s signature.
The bill in question, HB 940, was then forwarded to Gov. Hogan as a last-minute addition, and he rubber-stamped it alongside a pile of 200 other bills on Tuesday. As a result, sports fans in Maryland will now be allowed to start placing wagers on sports legally as early as June 1st.
Therefore, the Old Line State is the fifth USA state to pass a legal sports betting legislation in 2021, behind Arizona, New York, Wyoming, and South Dakota. Looking at a broader timeline, since the PASPA was repealed back in 2018, Maryland is now part of over two dozen US states with legal sports betting laws. The neighboring states, including Delaware, West Virginia, Pennsylvania, Washington DC, and Virginia, are about to face some stiff competition.
More Than 100 Sports Betting licenses To Be Issued in The Old Line State
Legislators in Maryland laid out the most flexible and diverse sports betting bill in the country. According to HB 940, the state will approve up to 60 online sportsbooks, which is by far the highest number of internet operators in the USA. In addition, compared to New Jersey, which is currently the leader of sports betting by revenue in the USA, Maryland will be issuing nearly three times as many licenses as The Garden State has presently awarded.
As soon as lawmakers approved HB 940 in April, commercial casinos in the state switched to high gear and started drawing plans for sports betting partnerships. Some of the already announced or likely team-ups of online sportsbook operators and Maryland’s six commercial casino properties are:
- Hollywood Casino Perryville- Penn National’s Barstool Sportsbook
- Horseshoe Casino Baltimore – Caesars/William Hill
- Ocean Downs- TwinSpires
- MGM National Harbor – BetMGM
- Live! Casino & Hotel- FanDuel is the likely partner candidate as Cordish Companies, the operator of the casino, has joined forces with FanDuel in Pennsylvania.
- Rocky Gap Casino Resort – William Hill could be the likely online sports betting partner for this casino. The operator, Golden Entertainment, has collaborations with William Hill in Nevada, and Colorado
The new sports betting law also allows major professional sports teams, stadiums and parks to offer retail and online sports betting services. With this leeway, The Old Line State joins three other jurisdictions – Arizona, Illinois, and Washington DC, to permit pro sports stadiums to operate sportsbooks. Some of the pro sports teams and stadiums that are expected to be part of the action include:
- Oriole Park at Camden Yards, Baltimore – Baltimore Orioles (MLB)
- M&T Bank Stadium, Baltimore – Baltimore Ravens (NFL)
- FedEx Field, Landover – Washington Football Team (formerly Washington Redskins)
- Maryland Jockey Club
- Laurel Park
- Pimlico Race Course
So, on top of the 60 online sports betting licenses, the six commercial casinos, three pro sports teams/stadiums, and horse racing parks will also be given room to compete for 10 retail sports betting Class A licenses.
Further, 30 more Class B retail sportsbooks licenses will be awarded to several other businesses, including bars and restaurants across Maryland. In this case, the state regulator will prioritize independent minority-owned business enterprises (MBEs) or establishments affiliated with MBEs when awarding the sports betting licenses. In addition, minor league sports stadiums in the state can also apply for this set of class B licenses.
By allowing non-gaming entities to offer sports betting without partnering with another gaming organization or facility, Maryland becomes the second jurisdiction to have such a policy in the US. The first to adopt this legal sports betting model was Washington DC.
Seven more Class B licenses will also be set aside for the state’s two commercial bingo halls that house at least 200 machines, four off-track betting parlors, and the Maryland State Fairgrounds. Class B license holders will also be allowed to bid for mobile wagering licenses.
When it comes to collegiate sports betting, major college sports stadiums like the University of Maryland’s Xfinity Center aren’t allowed to offer sportsbook services. Furthermore, the only form of collegiate sports betting allowed is single-game wagers on both in-state and out-of-state college sports teams.
Associated License Fees for Sports Betting Platforms
Looking at the licensing fees, large gambling venues and pro sports stadiums will have to part with a $250k licensing fee, whereas the smaller properties will spend $50K to purchase a license. On the other hand, online sports betting platforms will be charged the most again for their license, which will come with a half a million-dollar price tag.
Also, each large sports betting facility will be spending $50K annually in license maintenance fees, whereas the smaller venues will maintain their license with a $10k annual feel. Once again, online sportsbooks will pay the most fees, with each required to pay $100k annually for license maintenance. Moreover, both online and sports betting operators will have to pay a 15% tax on the gross gaming revenue from sports betting activity.
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