Maryland Lottery and Gaming Control Commission has released a draft of the proposed licensing fees and associated taxes for sports betting in the state.
In May, Maryland Governor Larry Hogan signed House Bill 940 to legalize and regulate sports betting. The bill allowed the lottery and casino regulatory commission to develop rules regarding sports betting licensing, taxation, and gaming expansion.
In Maryland, 60 mobile operators are set to be authorized to offer sports betting in the state. The state will tax retail and online sports betting at a rate of 15 percent. The state estimates that sports betting will generate between $15 million to $19 million when the market attains maturity.
Bill HB940 created numerous sports betting licenses with small and larger participants. Professional sports stadiums that include Oriole Park at Camden Yards, FedEx Field, and M&T Bank Stadium all qualify for Class A-1 license.
Class A-1 sports betting license costs $2 million upfront and an additional $6 million in licensing bond. Maryland requires payment of a bond to ensure licenses comply with applicable laws and regulations.
Class A-2 licenses are offered to casinos with less than 1, 000 slots and the Laurel Park and Pimlico horse racetracks. Class B-1 licenses are for the state Fairgrounds and any commercial bingo center. Class B-2 license is for small businesses that employ at least 25 people or generates a $3 million annual gross sale.
Holders of mobile licenses are permitted to partner with sportsbooks but at a steep cost. A full sportsbook must pay $50, 000 for the license and a $1.5 million bond.
Licenses are to expire after three years, and the renewal price is set at one percent of the average gross gaming revenue in the previous three years. The public in Maryland is expected to comment on the state taxation and licensing regulation when finally published.
With the Maryland Lottery and Gaming Control Commission taking bold steps in structuring sports betting, there’s a sense of anticipation among gaming enthusiasts and stakeholders. The legal framework, licensing costs, and associated taxes all hint at the state’s commitment to offering a transparent and regulated betting environment.
Such developments in the realm of gaming and entertainment are always of interest, especially to those who enjoy trying their luck in various platforms. For our readers who are particularly fond of online gaming, we at the West Island Blog have curated a list of top online casinos this month, tailored for the Canadian audience. Do check it out if you’re in the mood for some virtual gaming fun.
