Legal sports betting in Maryland likely this year comes after voters almost approved a referendum of one 2-to-1 margin in November.
However, it is still open what exactly the MD sports betting market will look like.
HB 940 is in the hands of the Senate after the House passed the bill last week and will get a hearing 25th March by doing Budget and Tax Committee. The bill underwent a major revision before it was passed with an amendment 60% more licenses to satisfy local business owners who want to get involved.
Sugar: Maryland Sports Betting Bill A “Roadmap”
A key senator involved in the process suggests that more changes could follow.
Sen. Craig Sugar wrote his own sports betting bill last year and is a member of the budget and tax committee. While he didn’t guarantee changes would come, that seems to be the expectation.
“I think it’s a roadmap in terms of where the house was,” Zucker told LSR. “The Senate will look closely and try to be as cooperative as possible with the House to make sure we have a good hearing on the law and adopt it from there.”
There is a Senate working group looking into the details of HB 940 to see what they like about the bill and what should change, he added.
A big change could be to double check how many licenses are available. It is momentary 37 licenses suggested:
- 12th Class A licenses for casinos, horse tracks and stadiums
- 10 Class B licenses for local businesses
- 15th for mobile.
“I think the working group and then the committee as a whole need to figure out how many licenses are the right ones, both in Class A and B and in the mobile licenses,” said Zucker.
Details in Zuckers SB 4?
Some of the possible changes could come straight from sugar SB 4 from last year.
“I think last year’s bill, passed unanimously by the Senate, was a good roadmap to where we’re likely to land,” Zucker told LSR in October.
Zucker suggested licenses for the state six casinos and three horse racing tracks with the option of obtaining a license for the Washington soccer team. The license fees ranged from $ 1.5 to $ 2.5 million and taxed income from sports betting 20%.
HB 940 details
The house bill is a little lighter on these important financial details.
Sports betting income would also be taxed 15% launch for both retail and mobile devices. As soon as the annual turnover of a mobile operator is reached $ 5 million this tax jumps up 17.5%. The retail tax rate does not include an escalator.
The proposal calculates $ 250,000 for a class A application with an annual $ 50,000 License fee. Class B operators would pay $ 50,000 to apply and $ 10,000 annually to keep the license. Cellular operators would ponyize $ 500,000 to apply and $ 100,000 one year for the license.
After five years, the operators would pay 1% from his average annual sports betting income for the past three years to renew his license.