Lacking Adequate Coverage for Maryland's Sports Betting Needs, Lawmaker Expresses Concerns
The Maryland sports betting law, signed in 2021 by Governor Larry Hogan, aims to establish one of the most extensive sportsbook markets in the US. However, almost three years later, some state legislators believe more sportsbooks are needed to address specific regions' needs.
Maryland's 2021 legislation grants up to 30 permits for retail sportsbooks and 60 for online operations. Additional licenses were provided to six commercial casinos, two horse racetracks, Maryland State Fairgrounds, three professional sports stadiums, and five off-track betting parlors and bingo halls. Overall, SWARC can issue a maximum of 107 sports betting licenses. Unfortunately, there are only 12 physical locations and 12 online platforms in the state at present.
Delegate Jason Buckel (R-Allegany) argues that these betting options are primarily in cities and densely populated areas, leaving certain parts of the state underserved, such as the Eastern Shore. He noted that "there are very few on the Eastern Shore."
While online betting is prevalent in many states, some players still prefer in-person sportsbooks. These establishments offer anonymity and a more social experience to bettors. Additionally, some bettors may be concerned about the potential damage to their betting habits and behaviors from online betting convenience.
In August, retail sportsbooks generated $13.4 million out of a total of approximately $263.7 million wagered, while online operators took $250.3 million in bets. Online operators earned almost 10% in winnings ($24.4M), while retail bookmakers retained 3.5% ($474K). Both retail and online sportsbooks pay a 15% tax on their gross sports betting revenue, which supports K-12 public education.
Though legalization of sports betting is a relatively recent development in Maryland, regulators expect a potential merger between retail and online sportsbooks as they compete for market share. Maryland has attracted major players like BetMGM, DraftKings, FanDuel, and Caesars Sportsbook, while also authorizing smaller online sportsbook operators like Betfred, Crab Sports Maryland, and BetParx.
SWARC Director John Martin mentioned that the legislation included only one bidding period, and the application window closed on October 21, 2022. There is currently no legal provision to offer additional enrollment periods. Randy Marriner, who leads the Maryland Lottery and Gaming Control Agency and is a SWARC member, added, "noone is knocking on our door asking to be let in."
Maryland regulators view the sports betting market as still in its early stages, with consolidation likely to occur as 12 retail and 12 online sports betting platforms compete for relevance.
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Source: www.casino.org
