The Journey of Maryland Sports Betting to Reality
After a long and winding road filled with regulatory steps and anticipation, Maryland sports betting has finally become a reality. This remarkable journey, marked by unanimous votes, public comments, and strategic planning, showcases the meticulous process behind launching a regulated sports betting market in a state eager for the economic and recreational opportunities it presents.
Maryland voters approved a 2020 referendum legalizing sports betting, and the state legislature enacted enabling legislation (HB 940) signed by Governor Larry Hogan in May 2021 that authorized retail and mobile sports wagering.
The Initial Steps to Legalization
It all began when state gaming regulators approved an extensive 228-page document outlining Maryland sports betting regulations. This critical approval by the Maryland Lottery and Gaming Control Commission was just the first in a series of steps designed to guide the state through the licensing and operational rollout of sports wagering. Despite the unanimous vote in a swift 30-minute teleconference, the path to launching sports betting was anything but straightforward.
Retail sportsbooks in Maryland began accepting wagers in December 2021, and mobile (online) sports betting officially launched at 9:00 a.m. on November 23, 2022, after the Sports Wagering Application Review Commission awarded initial mobile licenses.
Legislative and Regulatory Hurdles
The Commission’s approval kicked off the regulatory process, leading to the next necessary step: review and approval by the Joint Committee on Administrative, Executive, and Legislative Review (AELR). With the timeline for AELR’s approval unclear, stakeholders were anxious but hopeful for swift action. Following this, the approved regulations were slated for publication in the Maryland Register, signaling the start of a 30-day public comment period. This phase was crucial for transparency and public engagement, allowing citizens to voice their opinions on the proposed regulations.
Consultation and Application Review
The Maryland Lottery and Gaming Commission published the mobile wagering launch notice and confirmed that SWARC received multiple applications (21 total) and approved a subset for initial launch, with background investigations conducted by Maryland Lottery and Gaming staff before qualification hearings.
Another significant step involved the hiring of a sports wagering consultant by Maryland’s Department of Legislative Services. Tasked with reviewing licensing applications alongside the independent Sports Wagering Application Review Commission (SWARC), this consultant’s role was pivotal in ensuring a fair and thorough vetting process. However, with SWARC yet to meet and two sets of regulations pending approval, the timeline for starting the application process was uncertain.
State projections at launch estimated mobile wagering could generate substantial handle (up to $4 billion in the first year) and produce tens of millions in state revenue annually, with one projection cited of about $30 million in the first year and nearly $100 million by 2027.
Launching Maryland Sports Betting
Despite the lengthy preparations and remaining tasks, Maryland was optimistic about launching sportsbook operations in the fall of 2021. The initial phase was expected to see sportsbooks go live at 17 facilities, including professional sports venues, Pimlico, and the state fairgrounds, all of which were given licensing preference under state law. Additionally, up to 60 mobile/online licenses were anticipated to be issued, expanding the scope and accessibility of sports betting in Maryland.
While the journey to launch was complex and filled with regulatory and legislative steps, the Maryland Lottery and Gaming Commission remained committed to keeping the public informed. They pledged to provide updates as a firm timeline developed, acknowledging the importance of transparency and communication in the rollout of sports betting.
The regulatory rollout included publication of proposed regulations in the Maryland Register and a 30-day public comment period as part of the administrative rulemaking and oversight process.
In reflection, the path to Maryland sports betting was a testament to the state’s dedication to creating a regulated, fair, and engaging sports wagering environment. From the initial regulatory approvals to public consultations and strategic planning, every step was taken with careful consideration to ensure the best possible outcome for Maryland residents and the state’s economic future.
As we look back at this journey, it’s clear that Maryland’s approach to sports betting legalization has set a high standard for other states to follow. The meticulous process not only ensured compliance with legal and regulatory requirements but also fostered a sense of community involvement and anticipation for what has become a thriving and dynamic market.