Maryland Sports activities Betting Invoice leaves hopeful operators wanting extra
There was a lot of positive testimony Maryland Sports betting Thursdaybut those who want to get involved want more options.
House spokeswoman Adrienne Jones introduced HB 940 to the Committee on Ways and Means with three main objectives:
- Creation of a fair framework
- Increase in funding for education
- Maximizing meaningful opportunities for all, including minority-owned companies
While many were happy with the inclusiveness of the bill, local business owners wondered if there was enough room for them.
Voters approved MD sports betting through a referendum in NovemberThe focus now is on what the market will look like.
More Online Licenses in Maryland Sports Betting Bill?
HB 940 provides retail licenses for gaming and non-gaming businesses, but the mobile licenses are a little different.
There are altogether 13 retail trade Licenses available. Eight class A. Licenses are reserved for the state six Casinos and two Race track operator. The other five class B. Licenses are reserved for a tendering process.
There is only 10 mobile licensesBut they are all ready for a competitive offer. This has steered some local minority owned businesses in the wrong direction.
Tony Jones, Chief Strategy Officer at Delmock Technologies operates the off-track betting facility River boat on the Potomac, said more mobile licenses are needed to ensure the kind of inclusion the state wants to achieve:
“We believe that the number of mobile licenses really needs to increase. Our main concern is six casinos and two or three horse racing tracks. If there were only 10 mobile licenses, one would have to believe that these casinos would get a mobile license and one would have to believe that two or three racetracks would get a mobile license.
“Then the minority companies would fight each other for a very small piece of cake, and that’s not what the state wants in my opinion.”
Others ask for more licenses
The Maryland State Fair no license is guaranteed and wants a better shot at one.
“We are in a really great location, a great facility here,” he said Andy Cashman, GM the Maryland State Fair. “It’s 140 years old and we’ve kept up with a lot of great things, but there are a lot of capital improvements and things that we could certainly use with the money on sports betting to survive and improve our facility and grounds.”
Jack Lavoie of Southern Maryland Blue Crabs The minor league baseball team also complained about the number of licenses available.
The team would be interested in both a retail and a mobile sports betting license. The proceeds would help keep minor league baseball viable in the state and help with stadium repairs, he said.
“When we read the original bill, we were disappointed that between the six casinos and three racetracks it would be very difficult for small operators like ours or Mr. Jones or the fairgrounds or others to get involved,” Lavoie said .
Financial details of HB 940
What an operator pays for their license depends on the type of license they receive:
- Casinos and tracks pay a $ 250,000 Application fee for their Class A license with an annual $ 50,000 License fee.
- It will cost $ 50,000 Apply for one of five competitive Class B retail licenses. These operators pay $ 10,000 annually for their license.
- Hopeful cellular operators pay $ 500,000 to apply and $ 100,000 annually for the license.
All licensees are required to pay a license renewal fee every five years, which is the same 1% the operator’s average gross annual income from sports betting over the past five years.
Both retail and online sports betting revenues are taxed 15% with an escalator for cellular operators. As soon as the annual turnover of a mobile sports betting is reached $ 5 million, All additional income is also taxed 17.5%.