Maryland Voters Approve Sports Betting, Creating More Competition For Virginia Sportsbooks

By Tuesday night, a legal framework for sports betting has been established in four out of the six states neighboring Virginia.

The recent vote on Maryland sports betting has established a new status quo that is characterized by success.

The impending introduction of sportsbooks in Maryland could potentially have a more significant influence compared to neighboring states, particularly due to its connection to the future prospects of the Washington Football Team.

Details of the Maryland sports betting vote

Maryland voters have overwhelmingly approved legal wagering, as reported by the Baltimore Sun. With nearly a two-to-one majority, the decision paves the way for the establishment of sportsbooks in Maryland. However, details regarding their appearance and operation remain uncertain.

The Maryland legislature is currently tasked with developing a framework since Question 2 did not provide any regulatory guidelines. The state government must determine the level of involvement for the nine casinos and racetracks located within its jurisdiction.

The legislative process may encounter minimal obstacles as Gov. Larry Hogan supports it, leaving the task of garnering enough backing from members of the state assembly. They will collaborate to resolve matters such as:

• An aggregate revenue tax rate.
• In-stadium sportsbook policies
• License fees
• The decision on whether to impose limitations on betting in college sports.
• Should online sportsbooks be permitted to operate without the requirement of a facility partner?

The decisions made by the state regarding these matters could greatly affect the stakeholders who advocated for the approval of Question 2, potentially impacting VA as well.

DraftKings’, FanDuel’s, and Washington Football Team’s interests

DraftKings, FanDuel, and the Washington Football Team were among the three corporations that financed advertising campaigns urging Marylanders to vote in favor of Question 2. The motivations behind the involvement of the first two companies in this issue are quite apparent.

After resolving the legality concern, DraftKings and FanDuel may seek a reduced tax rate, fewer limitations on the events they can participate in, and unrestricted licenses. Nevertheless, they can expect resistance from casinos and racetracks in the state regarding the latter matter.

Virginia’s stake in the outcome primarily concerns the Washington Football Team, which currently hosts its home games in Landover, MD.

Since 1997, Washington has been hosted at FedEx Field, which according to the team’s owner Dan Snyder, has become outdated by NFL standards. Snyder has consistently expressed his desire for a new venue once the current lease expires in 2027.

Furthermore, Snyder has explicitly expressed his preference for having the opportunity to provide sports betting services at a new stadium. Had Maryland voters rejected Question 2, Virginia would have gained an advantage in potentially enticing the franchise to relocate to the Old Dominion state.

MD should enact a comparable statute to remain competitive since both VA and Washington, DC already permit wagering at stadiums.

At the moment, there is no specific timeframe for the implementation of these laws in the state. However, if sportsbooks in VA become operational in the beginning of next year, it could potentially motivate MD to expedite their own process.