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Maryland is the latest state to formally sign sports betting into law. Gov. Larry Hogan (R) signed HB940 on Monday. The bill legalizes sports betting in Maryland.
The sports betting bill is massive, as it creates more potential sportsbook licenses than any other state to date. HB940 allows the state’s six commercial casinos, professional sports stadiums, horse racetracks, and other businesses to apply for sports betting rights. Permits for mobile sportsbooks are also included.
In total, as many as 90 sports betting licenses could be issued.
Maryland voters last November passed a ballot referendum with 67 percent support to amend the state constitution to allow sports betting. The legislature’s subsequent bill authorizes the formation of a commission that will review applications and issue sports betting licenses.
Sports Betting Benefit
Gross gaming revenue (GGR) from sports betting will be subject to a 15 percent tax on retail and mobile wagering. Such tax revenue will go toward public education.
It’s estimated that legal sports betting will generate $17 million annually once the young market matures. Hogan has long championed using casino tax money to prop up state education.
We are already funding our K-12 schools at record levels, and this is another way to ensure that is the case for years to come,” Hogan said last October ahead of the sports betting referendum.
The second-term governor says sports betting will be another revenue resource for public education that does not raise taxes on families or businesses.
Sports betting for businesses could also be a way to help their bottom lines. HB940 allows businesses with fewer than 25 employees and less than $3 million in annual sales to participate in sports betting.
While casinos, racetracks, and stadiums will need to pay $3 million for their sports betting rights, such small businesses will be able to get in for as little as $50,000. Those entities would need to partner with a third-party operator like DraftKings — which would pay a heftier $500,000 upfront fee — to place sports betting kiosks in their places of business.
Ravens, BetMGM Partner
The Baltimore Ravens didn’t waste any time in announcing their first sports betting deal. The NFL franchise revealed today that it has entered into a partnership with BetMGM to make the interactive gaming provider the team’s first “Official Gaming Partner.”
BetMGM will have a private hospitality suite inside M&T Bank Stadium, and its app in Maryland will be allowed to use the Ravens brand and likeness. The MGM Resorts-owned iGaming platform can additionally use Ravens logos in its advertising campaigns.
The Maryland Stadium Authority (MSA) — the landlord for the Ravens and MLB Orioles’ Camden Yards — lobbied state officials for inclusion in sports betting. The MSA successfully petitioned to not only allow its venues to incorporate sportsbooks into their venues, but to allow them to operate when their home teams aren’t playing, and also partner with online sportsbooks.
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