Maryland Could Be Cashing In On Sports Betting; House Bill To Be Heard Later This Week

• MD HB 0963, a sports betting bill, is scheduled for a hearing in the state House this Wednesday at 1 pm
• The bill was originally introduced this year as MD HB 1132 but has been updated to include a possible voter referendum

ANNAPOLIS, Md. – The Maryland Lottery has been eyeing sports betting in Maryland since a bill was introduced last month by Dels. Jason Buckel and Kevin Hornberger. Now, under a new name and slightly different provisions, MD HB 0963 is set to be heard this Wednesday at 1 pm.

The bill includes all of the main components of when it was first introduced. If enacted it would grant the Maryland Lottery the power to regulate and offer sports betting licenses in the state. The only entities to be able to apply for sports betting would be current video lottery operators and horse racing tracks.

The operators would then be able to keep 80% of revenue generated by sports wagering and the lottery would keep the remaining 20%.

The main difference now comes from how this bill would be legally executed. While this bill was originally thought to be a means to bypass a voter referendum, it now includes provisions that would require just that to be able to pass.

If state legislators pass the bill, the next opportunity for Maryland residents to be able to make this decision will be on the 2020 November ballot.

What Would The Proceeds Go Towards?

The percentage of tax revenue to be allocated to the Lottery would be much less than nearby states who have set their lottery commission in charge of sports betting. For example, both Delaware and Rhode Island take in about 50% of the revenue generated by sports gambling.

The 20% that Maryland would keep is much smaller than those states but it would be stretched out across three main programs. The education trust fund would keep 80% of those taxes, followed by the problem gambling fund keeping 10% and local impact grants given 10% as well.

If approved by voters, Maryland would be the first state to have these specific rules. Because of that, it is hard to tell how much exact tax revenue would be generated by the initiative.

However, states such as Delaware have seen their sports betting handle reach upwards of $16.8 million dollars and kept a hold of 18.8% in a single month. Maryland will also face competition from Washington D.C. who has already legalized sports wagering.

In order to stay competitive and maximize the government budget, state officials and Maryland voters will have to keep this in consideration for this week and possibly for the next year.