After the possibility that Maryland lost support on a sports betting bill, voters turned out on Tuesday to vote “yes” to the new industry. The sports betting bill passed by an overwhelming 66% to 33% for legalization.
Maryland was one of three states to pass a sports betting bill, including Lousiana and South Dakota, who also passed its sports betting bills. All three states will look to launch sports betting sometime in 2021.
“Question 2 provides a critical revenue source for public education without raising taxes on families and businesses,” Gov. Larry Hogan (R) said early Wednesday. “This initiative builds on the very successful ‘Hogan Lockbox,’ which puts casino revenues in a lockbox dedicated to education. We are already funding our K-12 schools at record levels, and this is another way to ensure that is the case for years to come.”
Taxes from sports betting will help education and minority businesses in the state.
What Will the Industry Look Like?
Estimations see the state collecting $18 million in revenue from sports betting thanks to the proposed 20% tax that it will have. 19% is expected to be used for education, while the final 1% will be given to minority businesses.
The rest of the regulations will be discussed when the state returns to the legislative session in January. Maryland was the last to legalize sports betting but is put on similar ground with neighbor Virginia who has passed a betting bill but has not launched the industry.
Maryland can thank DraftKings and FanDuel for campaigning the legalize sports betting. The two operators spent $1.8 million to educate Maryland votes on legalized sports betting. Over an additional $3 million was spent on a sports betting legalization campaign. Opposition to legalized sports betting in Maryland spent $0.
There is also hope that Maryland will legalize mobile sports betting. Pennsylvania, West Virginia, and Washington D.C. have mobile betting legal, and Virginia planning to have an online-only sports wagering industry. This could pressure Maryland to have mobile betting available, so it is accessible for everyone in the state instead of close to a casino or racetrack.
Can New York Legalize Mobile Betting?
If Maryland allows online mobile wagering, it will leave New York as the last state in the region to legalize mobile betting creating a huge blow in the Empire State’s betting market.
New York is seeing billion lost per year as people flock to neighboring New Jersey to place bets online. Sen. Joseph Addabbo believes the state could bring in over $200 million annually if they legalize sports betting.
With the closest casino being 90 minutes away from New York City, people find it easier to drive across the Hudson River to bet on games than going to Upstate New York.
Gov. Andrew Cuomo has still been focusing on limiting the spread of COVID-19 instead of returning to normalcy among state lawmakers. Cuomo has not commented on mobile sports betting but could use the projected $200 million to bridge the budget deficit gap.
New York is looking at a multi-billion dollar budget deficit thanks to the coronavirus, and online sports betting could help solve part of the issue.