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Frustrated that Maryland is lagging behind other states in a potentially lucrative industry, Gov. Lawrence J. Hogan Jr. is urging the commission that oversees sports wagering to approve mobile betting by the time the NFL starts its 2022 season in September.
In a letter to the Sports Wagering Application Review Commission (SWARC) on Tuesday, Hogan (R) urged the panel to 鈥渋mmediately accelerate and intensify your efforts鈥� to grant mobile licenses.
Currently Marylanders can gamble on sporting events only by traveling to a handful of casinos 鈥� MGM National Harbor in Oxon Hill, Live! in Hanover, Horseshoe in Baltimore, Ocean Downs in Berlin and Hollywood in Perryville.
A small number of sports bars have also been approved and are in the process of getting their betting operations open.
But online wagering 鈥� where the public can place bets on a phone or laptop 鈥� is still not available here, even though voters approved a sports wagering referendum in 2020.
Hogan鈥檚 letter to the SWARC comes as industry observers grow pessimistic about Maryland鈥檚 hopes of launching mobile betting this year.
鈥淥nline Maryland sports betting in 2022 likely dead,鈥澛犅爋n the industry website Legal Sports Report. The site blamed 鈥渁 lengthy bureaucratic process for Maryland sports betting [that] continues to have no end in sight.鈥�
Action Network, a prominent betting-related site,聽聽that 鈥淢aryland鈥檚 online sports betting rollout is longest delay in U.S. history.鈥�
While critics accuse the SWARC of dragging its feet, the state lawmakers who were instrumental in crafting Maryland鈥檚 sports wagering law defend the commission. They say the panel is adhering to their legislation, which placed a premium on making sure that local, women-owned and minority-owned entrepreneurs are able to compete against the national sportsbooks that dominate elsewhere.
鈥淲e all want mobile betting to start, but we have to launch it in a way where we鈥檙e following the law and the intent of the bill,鈥� said Del. Darryl Barnes (D-Prince George鈥檚), the chair of the Legislative Black Caucus. 鈥淎nd that was to try to give minorities an opportunity to participate in this industry.鈥�
At the heart of the state鈥檚 efforts to guarantee an equal footing is a 鈥渄isparity study鈥� that documents barriers to entry that non-white and female-led businesses face gaining access to capital and market-share. The SWARC is relying heavily on the advice it is receiving from the attorney general鈥檚 office, making it unlikely that the SWARC will alter its strategy.
In his letter, Hogan blamed an 鈥渙verly-complex鈥� law that he said was 鈥渟kewed to appease special interest groups and organizations.鈥� He did not identify them. Hogan also blamed 鈥渂ureaucratic hurdles and legal obstacles placed by the Office of the Attorney General. Hogan and Attorney General Brian Frosh (D) have a frosty relationship.
鈥淲ith only five physical locations in the state currently accepting sports wagers, Maryland is losing tens of millions fo dollars in economic investment and education revenue that should be going toward our public schools and students,鈥� he wrote. 鈥淭he time for deliberation has passed.鈥�
Hogan called on the SWARC to:
- Set a 鈥渇irm and transparent timeline鈥� for the launch of mobile wagering 鈥渁t your next meeting.鈥� (The panel meets on Thursday.)
- Release the drafts version of its 鈥渁pplication and accompanying regulations,鈥� to enable would-be sportsbooks to prepare comments
- Adopt an expedited process 鈥� similar to the one used last year, to allow bricks-and-mortar locations to open their doors 鈥� so that 鈥渆xperienced gaming operators that are already licensed for mobile wagering in numerous other states鈥� can begin accepting bets here
Although Hogan is pushing to get mobile wagering up by September, for Week 1 of the NFL season, an industry source told Legal Sports Report that 鈥渁 launch by the 2023 Super Bowl is likely a stretch.鈥�
The SWARC is unlikely to get the disparity study 鈥渦ntil at least summertime,鈥� Action Network reported. 鈥淥nly then can the Maryland Lottery begin the rules and applications process, which will take even more time.鈥�
鈥淢aryland has made $1.8 million in four months of retail sports betting, but that鈥檚 a drop in the bucket compared to what鈥檚 expected from online betting,鈥� the site reported. 鈥淰irginia, its neighbor to the south, has already made $24.6 million in taxes off of sports betting.鈥�
Proceeds from sports wagering help fund a decade-long education reform plan called the Blueprint for Maryland鈥檚 Future.
Sen. Craig Zucker (D-Montgomery), another lawmaker involved in crafting Maryland鈥檚 sports wagering law, said the SWARC is 鈥渇ollowing the letter of the law.鈥�
鈥淭he whole intent of the mobile apps was to make sure that everyone had the opportunity to get in the market,鈥� he said. 鈥淭hat includes your small, minority- and women-owned businesses. It鈥檚 an independent commission that鈥檚 been appointed by the General Assembly and the governor to get this right. That鈥檚 the most important thing.鈥�
