Launching Maryland’s Sports Betting: An In-depth Roadmap
Excitement mounts as Maryland approaches a significant milestone in the realm of sports wagering. With legislation enacted in May setting the stage, the state is on the cusp of greenlighting sports betting operations. The forthcoming month is crucial, as it is when Maryland is slated to finalize and approve sports betting regulations, subsequently kicking off the application and licensing journey.
Maryland legalized sports betting when Governor Larry Hogan signed HB 940 in May 2021, allowing up to 60 mobile sportsbook licenses and multiple retail licenses; online/mobile wagering officially launched in November 2022 after regulatory approvals and licensing by the Maryland Lottery and Gaming Control Commission and the Sports Wagering Application Review Commission.
The framework will facilitate the issuance of 60 mobile sports betting licenses and a substantial number of retail licenses, heralding a new era in Maryland’s betting landscape. Below, we delve into the sequential steps Maryland will undertake to transition from regulatory approval to the full-scale launch of sports betting operations.
Initial Regulatory Endorsement by Maryland Lottery and Gaming Commission
Marking a pivotal first step, the Maryland Lottery and Gaming Commission is on track to endorse the sports betting regulations by mid-July. This endorsement is vital for establishing a regulated, fair, and secure sports betting environment in the state, leading to the subsequent phases of application and licensing.
The Intricacies of Operator Accreditation
For aspiring sports betting operators in Maryland, securing approval involves a detailed examination by two key bodies: the Sports Wagering Application Review Commission (SWARC) and the Maryland Lottery and Gaming agency. Here’s a closer look at what this entails:
- SWARC, comprising seven members, will evaluate licensing requests. Their assessment will focus on various aspects, including business strategies and geographical considerations, with a strong emphasis on diversity in ownership.
- An in-depth criminal and financial vetting by Maryland Lottery and Gaming is necessary for obtaining a sports wagering license.
Diving into Application Fees
The cost of entering the sports betting market varies significantly depending on the license type:
- With a hefty $2 million fee, Class A-1 licenses cater to major players like professional sports venues and large-scale casinos.
- Class B-2 licenses, targeting smaller venues like state fairgrounds and riverboats, are more accessible with a $50,000 application fee.
- Mobile/online licenses, capped at 60, command a $500,000 fee.
All application fees are to be paid upfront and are non-refundable.
Navigating the Licensing Landscape
Successful applicants will see their licenses remain active for five years, subject to renewal. The renewal fee is pegged at 1 percent of the licensee’s average annual revenue from the past three years, after accounting for the 15 percent levy directed towards Maryland’s educational fund. This structure leaves operators with 85 percent of their sports wagering revenue.
Setting the Stage for Sports Betting Operations
Although the official date for sports betting to go live in Maryland is yet to be announced, there’s optimism for a launch in the fall of 2021. Maryland’s legislation earmarks 17 licenses for predetermined venues, ensuring a straightforward path to obtaining a sports betting license for those who meet the criteria.
What Lies Ahead for Maryland’s Sports Betting Initiative
With the Maryland Lottery and Gaming Commission’s impending approval of regulations, the state embarks on an exciting journey in sports betting. The timeline following the initial approval is still in flux, leaving industry stakeholders eagerly anticipating the next steps. As Maryland drafts the operational rules, there’s a collective hope for a seamless integration into the sports betting market.
Maryland’s strategic and careful planning illustrates a commitment to not only adhering to regulatory standards but also providing an equitable and thriving platform for sports betting enthusiasts and operators alike.