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Maryland鈥檚 new sports gambling law allows state regulators to issue temporary licenses to companies that have undergone background checks here or in other states.
The Maryland Lottery and Gaming Control Commission announced last week it will utilize this provision as part of a push to get the new industry up and running in time for the NFL playoffs.
The commission鈥檚 online licensing portal opened Thursday to the 17 bricks-and-mortar sites that were specifically granted a license in the legislation, a list dominated by casinos, race tracks, off-track betting locations and professional sports stadiums.
The commission is not ready to accept applications for the 30 additional bricks-and-mortar licenses or the 60 mobile licenses that are available.
The partial opening of the 鈥渆-licensing platform鈥� likely means that many of the 17 named businesses will get a head start on companies that have never gone through a licensing review.
That could give established companies an advantage over potential start-ups and home-grown businesses not named in the bill, critics warn.
鈥淲e鈥檝e waited this long. We need to do our due diligence and not rely on any other licensing or decision-making that was made,鈥� said Del. Dereck E. Davis (D-Prince George鈥檚), head of the House Economic Matters Committee.
鈥淲e do our own homework, and whenever it鈥檚 ready, it鈥檚 ready.鈥�
Davis said he understands the desire to launch Maryland鈥檚 betting industry as quickly as possible; many of his constituents are eager to place bets legally.
But he said Maryland risks lawsuits if it doesn鈥檛 treat all potential applicants equally. 鈥淭here鈥檚 no need to get cute or sloppy now. [We must] make sure that we鈥檙e fair to everyone, so we don鈥檛 end up in court,鈥� he said.
Sen. Craig Zucker (D-Montgomery), who helped shepherd the sports betting bill through the legislature, said Maryland鈥檚 law was crafted to 鈥渃ut down on the bureaucracy鈥� while still making sure that all sportsbooks are properly vetted.
As was the case when Maryland legalized casino gambling, state law requires that applicants and their suppliers, partners and employees undergo criminal and financial screenings.
鈥淲e wanted to be diligent,鈥� Zucker said. 鈥淲e wanted to be thoughtful. We wanted to be thorough. But we also didn鈥檛 want to re-create the wheel for some of the players that were already partnered with Maryland.鈥�
Declan Hill, a journalist who has chronicled sports gambling scandals, called it 鈥渘ot acceptable鈥� to rely solely on another state鈥檚 investigations process.
鈥淚t鈥檚 unfair [to] a start-up company that鈥檚 trying to do things right, trying to cross their t鈥檚 and dot their i鈥檚, if the big boys just come in and say, 鈥楬ey, no problem, Nevada鈥檚 already checked us out,鈥欌�� said Hill, a professor at the University of New Haven.
鈥淲e鈥檝e got to have one starting line for everybody. Everybody has to go through due diligence in Maryland,鈥� he said.
He called the 鈥済lobalized鈥� world of sports gaming 鈥渃omplicated鈥� and 鈥渕essy.鈥�
The lottery and gambling commission鈥檚 announcement that it will consider temporary licenses to businesses that have been undergone prior vetting follows prodding from Gov. Lawrence J. Hogan Jr. (R).
In August he told Maryland Matters he has pushed state regulators to move as quickly as possible.
Most of Maryland鈥檚 neighbors allow betting on sports events. New Jersey鈥檚 handle is now larger than Nevada鈥檚.
鈥淚 pressed them pretty hard about making sure we get it done at least by the end of football season when all the betting takes place, really 鈥� in the playoffs and the Super Bowl,鈥� Hogan said in August.
Eric Ramsey, a sports betting analyst for PlayMaryland.com, said there is little concrete evidence that companies will get a lasting advantage from a temporary head start.
鈥淲e haven鈥檛 really seen brand loyalty,鈥� he said. 鈥淸Bettors are] much more concerned about which operator is going to give them the best promotions.鈥�
鈥淓veryone wants to be first, and the first operators will certainly acquire the first batches of customers,鈥� Ramsey added. 鈥淏ut those first customers will keep trying sportsbooks as new ones come into the market. They鈥檙e not just going to stick with the first brand they found.鈥�
Maryland Lottery and Gaming Director John Martin said on Monday that the state is prepared to pull any temporary license it issues if a subsequent investigation raises red flags.
The newly created Sports Wagering Application Review Commission (SWARC) holds its second meeting on Tuesday.
Under state law, the SWARC reviews applications to determine whether they meet Maryland鈥檚 criteria, then the Lottery and Gaming Control Commission conducts criminal and financial background investigations.
