The Case For Online Gambling In Maryland
Our first glimpse of Maryland's online gambling bill raises a lot of questions.
The Bulletin Board
NEWS: A look at Maryland’s new online gambling bill.
NEWS: DraftKings pulls Pick6 in Maryland.
NEWS: Florida sports betting update: West Flagler submits its response to the Florida Supreme Court, centering its argument on Amendment 3.
AROUND the WATERCOOLER: A fixed fight?
STRAY THOUGHTS: What’s the best Christmas song? I have thoughts.
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Maryland Lawmaker Plans iGaming Push in 2024
Maryland State Sen. Ron Watson has released a draft of an online gambling bill he plans to introduce at the start of the 2024 legislative session, which kicks off on January 10.
Per Vixio GamblingCompliance, the updated bill has a:
$1 million licensing fee (up from $500,000 in the 2023 bill), with the license term reduced from five to four years.
46% tax rate, a dramatic increase from the 15% rate in 2023.
Vixio also reports that each licensee can operate two online gambling skins under Watson's proposal.
The increased operator burdens will likely dull stakeholder support as the tax rate falls into the “we can’t make a profit” category.
Per Vixio, Watson has asked, “Democrat Vanessa Atterbeary, chair of the powerful House Ways and Means Committee, to review the bill and be the co-sponsor of the legislation in the Maryland House of Delegates.”
As I’ve been reporting, Maryland’s efforts to legalize online casino gambling will have to overcome significant hurdles. Everyone (including myself) has Maryland as one of the best candidates to legalize online casino gambling, but that’s only part of the story.
Being the best online casino candidate in 2024 is akin to being the valedictorian of summer school. Or, as Light & Wonder’s Howard Galser put it, “Does that mean they’ll get over the finish line? Not necessarily. There are headwinds that generally are facing iGaming and some that are specific to those states.”
What are those headwinds?
First, 2024 is a presidential election year.
Then, there is the double-edged TiG report produced for the state. The report was overall positive, but its findings on land-based cannibalization will provide opponents with all the ammunition they need to paint online gambling as a problematic idea - the cannibalization finding from TiG has even popped up in Mississippi.
And finally, concerns about rising problem gambling rates have been increasing since the introduction of online sports betting.
As reported by the Baltimore Sun:
Feedback provided by Maryland’s problem gambling center in the report to the state gambling agency detailed that most studies have found online gambling to result in more issues than in-casino wagering. The report stated the “convenience factor of online gambling cannot be overlooked as a reliable predictor of problem gambling.”
The combination of cannibalization and problem gambling led to Del. Steve Johnson saying, “I think we really need to slow down and take a good look at this.”
Sen. Clarence Lam said more online gambling “will probably lead to more Marylanders experiencing problem gambling, as well as a reduction in revenue at our casinos.”
DraftKings New Pick6 Games 86’ed in Maryland
After signing off on the contests, Maryland Lottery officials have reversed course, telling Sports Handle that the Pick6 games offered by DraftKings fall within the state’s definition of sports betting:
“The sports wagering definition in our law includes single-game bets; teaser bets; parlays; over-unders; moneylines; pools; exchange wagering; in-game wagering; in-play bets; proposition bets; and straight bets,” Seth Elkin, the Maryland Lottery’s managing director of communications, told Sports Handle via email. “If a competition has any of these components, it’s defined in Maryland as sports wagering and is not permitted as a DFS offering. It can only be made available by a licensed online sports wagering platform or facility.”
DraftKings is a licensed sports betting operator in Maryland, but the Pick6 games were offered through the company’s DFS app.
DraftKings recently launched the Pick6 contests as a happy median between traditional peer-to-peer DFS contests and the newer vs.-the-house Pick’ Em style contests - Pick6 is a P2P Pick’ Em contest.
Other DFS operators that offer Pick’Em style games like PrizePicks and Underdog Fantasy (a newsletter sponsor) do not operate in Maryland.
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Latest (Final?) Florida Sports Betting Update of 2023
In a 52-page response, West Flagler has put forth its main argument against the compact that authorized the Seminole Tribe to offer sports betting in Florida.
The linchpin for West Flagler’s argument is Amendment 3 and its use of the phrase “any of the types of games typically found in casinos.”
What the West Flagler argument boils down to is, does Amendment 3 “found in casinos” phrase include sports betting? West Flagler argues no.
In the brief, West Flagler writes:
“Second, they argue that Amendment 3 does not apply to sports betting.
“This argument is defeated by Amendment 3’s plain language and exceptions that would have been completely unnecessary if Respondents’ restrictive interpretation were accepted. It is also belied by arguments of the Amendment 3 proponents before this Court and the Compact’s own definition of sports betting as a Covered Game, along with slots and table games.”
The brief later states:
“During oral argument on the ballot language, both proponents and opponents raised sports betting as an example of what “casino gambling” captured.
“Responding to questioning by then-Chief Justice Canady on the authority that Amendment 3 grants to the People in lieu of the Legislature, proponent Voters in Charge recognized that sports betting in Florida would be required to be offered through the ballot initiative process, asserting:
“For example, if someone came forward with an amendment [a citizens’ initiative under Amendment 3] that proposed to make sports betting legal throughout the State…”
[…]
“Likewise, opponents responded to Justice Pariente’s question about the effectiveness of Amendment 3 to authorize casino gambling, by arguing:
“I’ll give you a perfect example. Internet gambling and sports betting are the biggest things right now – there is lots of effort in Washington D.C. to try and deal with both of these.”
Attorney Daniel Wallach laid out the next steps now that the response has been submitted.
Wallach called the brief “compelling” but has reservations when it comes to how it will be received.
“If it were in any other court besides the one where Gov. DeSantis appointed 5 out of 7 justices and has never had a writ of quo warranto issued against him (14 cases),” Wallach tweeted. “I’d feel more optimistic about West Flagler’s chances in state court.”
Around the Watercooler
Social media conversations, rumors, and gossip.
US Integrity is looking into potential shenanigans in an undercard fight from the December 15 fight card that featured Jake Paul vs. Andre August.
The match in question is Yoenis Tellez vs. Livan Navarro, first reported by Sports Daily. The report was later confirmed by Legal Sports Report’s Mike Mazzeo.
Stray Thoughts
There is a lot of debate over the best Christmas movie and even more debate about whether Die Hard should be in the discussion (it should). But in my mind, there is no debate over the best Christmas song: Father Christmas by The Kinks.