Maryland Begins Approving Interim Sports Betting Licenses, Plans on “Late Fall” Launch
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The Maryland Lottery and Gaming Control Commission announced last week that it will be using interim licenses to expedite the launch process of the sports betting industry in the state. Maryland’s eLicensing platform launched on September 14 and 17 brick-and-mortar locations are now eligible to apply for sports betting licenses under the assumption that they have previously undergone background checks and approval in different states. With this new interim license process underway, Maryland regulators are hopeful to have sports betting available sometime in the “late fall” of 2021.
Maryland Sports Betting Background
On November 4, 2020, voters approved an initial ballot measure that allowed retail and online sports betting with a 2 to 1 margin. Shortly after, the Sports Wagering Application Review Commission (SWARC) was founded to head the licensing process. HB940, a bill to legalize sports betting, passed in the House and Senate in March and April 2021, respectively. On May 18, 2021, Governor Larry Hogan signed HB940 into law. The SWARC met for the first time on August 16 and the Maryland Register published regulations on August 27. On September 14, the eLicensing process opened and interim licenses are now being approved.
Maryland Sports Betting Licenses Granted
The Maryland Lottery and Gaming Control Commission has opened interim sports betting license applications to 17 brick-and-mortar sites that have been previously granted licenses. These include the following:
Six Casinos
- MGM National Harbor in Oxon Hill
- Live! Casino & Hotel in Hanover
- Horseshoe Casino in Baltimore
- Hollywood Casino in Perryville
- Rocky Gap Casino in Flintstone
- Ocean Downs Casino in Berlin
Five Off-Track Betting Facilities
- Maryland State Fairgrounds in Timonium
- Jockey Bar and Grill in Boonsboro
- Greenmount Station in Hampstead
- Long Shot’s in Frederick
- Riverboat on the Potomac in Colonial Beach, Va. (in Maryland waters of the Potomac River)
Three Professional Sports Locations
- Baltimore Ravens
- Baltimore Orioles
- FedEx Field in Landover
Two Bingo Halls
- Bingo World in Baltimore (Anne Arundel County)
- Rod ‘N’ Reel in Chesapeake Beach
Horse Racing Tracks
- Pimlico Race Course in Baltimore
- Laurel Park Race Track in Laurel (share a single license)
There are another 30 brick-and-mortar licenses available, but the Commission is not yet ready to accept those licenses.
Concerns Over Unfair Treatment of Some Applicants
Several key individuals in the legislative process have expressed concerns over the interim licenses providing an unfair advantage to established businesses over home-grown businesses and start-ups as the established brands have already gone through licensing reviews in different states. Delegate Derek E. Davis, head of the House Economic Matters Committee, said Maryland risks facing lawsuits as this proposed plan does not treat all applicants fairly. Additionally, Declan Hill, one of the foremost experts on match-fixing and corruption in international sports, said it was “not acceptable” to rely on another state’s investigative process.
What’s Next?
Now that interim licenses are being handed out, Maryland Lottery and Gaming Director John Martin said the state is prepared to pull any temporary license if subsequent investigations raise any red flags about the company. The adoption of this interim licensing process is in response to Governor Hogan’s previous push of regulators to speed up the launch of legal sports betting, particularly due to the increased sports betting offerings in neighboring states. In response to concerns over any unfair advantage, Eric Ramsey, sports betting analyst for PlayMaryland.com, said it’s unlikely companies will get any lasting advantage from a temporary head start as customers care more about odds boosts and promotions than they do about brand loyalty.
The SWARC had its second meeting on Tuesday to review new applications, but the first round of applications is only available for retail sportsbooks. Mobile betting adoption in Maryland will take longer and there are 60 available licenses with an additional application process required even for brands approved for retail sports betting. The Lottery and Gaming Control Commission is accepting public comments through September 27 ahead of finalizing its regulations. Maryland regulators are targeting a “late fall” launch in time for the NFL playoffs and the Super Bowl which bring the prospect of millions of dollars in tax revenue for the state.
