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A House bill that would establish a sports betting framework in Maryland was the topic of a public hearing in the Senate Budget & Taxation Committee on Thursday.
And the session quickly became an audition, of sorts, for the many companies eager to grab a slice of the pie.
Testimony was dominated by representatives from Black- and female-owned firms. They urged legislators to maximize opportunities for minority companies, in part by expanding the number of mobile, or app-based, licenses.
is sponsored by House Speaker Adrienne A. Jones (D-Baltimore County). The House approved it 129-10 on March 11.
Jones said her bill, the only sports betting legislation pending in the General Assembly, would bring Maryland even with neighboring states and generate revenue for education.
It also 鈥渕aximizes the opportunity for minority businesses to meaningfully participate both in equity ownership and in procuring contracts in this new state-created industry,鈥� she said.
House Majority Leader Eric G. Luedtke (D-Montgomery) told the Senate committee the measure would empower a new panel, the Sports Wagering Application Review Commission, to address 鈥渙wnership disparities鈥� in the gambling business 鈥渢hrough the competitive bidding process.鈥�
The legislation was vetted by the Attorney General鈥檚 office, he added, in the hope it can withstand potential legal challenge.
Jones鈥� bill would guarantee betting licenses for Maryland鈥檚 six casinos and to the teams that play in the state鈥檚 three professional sports stadiums.
The state鈥檚 busiest horse track, Laurel Park, would also be guaranteed a license, as would the State Fairgrounds in Timonium and the Riverboat on the Potomac, an off-track betting venue in Charles County.
In addition, 10 additional 鈥渂ricks and mortar鈥� licenses would be awarded to other companies 鈥� most likely restaurants, sports bars and racing venues 鈥� through a competitive process.
There also would be 15 鈥渕obile鈥� licenses, also competitively bid, for companies that want to take bets online.
Some of those who testified told the panel that adding even more mobile licenses to the bill would help minority and female applicants.
鈥淭here are no minority-owned and/or women-owned sports wagering companies in the marketplace,鈥� Shane M. August told the panel.
August, CEO of Virginia Beach-based August Holding Corp., told lawmakers that states that have established sports gambling programs have practices that 鈥渉eavily favor the large corporations and conglomerates.鈥�
Several company representatives who testified on Thursday have been regular participants in the Senate鈥檚 informal sports betting work group. They cast their firms as ideal candidates for a wagering license, even though the committee will have little role in deciding who gets one.
After the hearing, Senate Majority Leader Nancy J. King (D-Montgomery) expressed a concern that companies may have unrealistic expectations about the new industry.
鈥淭here are just so many people that think they鈥檙e going to get rich real quick on this, and it鈥檚 not going to happen,鈥� she said. 鈥淭here鈥檚 only so much disposable-type income that people have.鈥�
The state would tax 鈥淐lass A鈥� licenses (casinos, stadiums and Laurel Park) at 15%.
Holders of mobile licenses would be taxed at 15% for the first $5 million in proceeds and 17.5% after that.
Most of the revenue would go to the Blueprint for Maryland鈥檚 Future Fund, to benefit public education. Some money would be set aside to address problem gambling.
Sen. Craig J. Zucker (D-Montgomery), head of the Senate work group and sponsor of a 2020 wagering bill, said 鈥渨e鈥檙e going to get sports betting done this year no matter what.鈥�
鈥淗alf the country鈥檚 [already] doing it and it鈥檚 legal.鈥�
