Despite a new sports betting law proposed by Milt Champion, director of Maine’s Gambling Control Unit, the state is expected to launch its sports betting market in the next few months. The target is to launch during the summer months.
Maine Could Be Implementing Some Pivotal Changes
On Wednesday, the state officials that oversee the operations released new draft rules that depict how the state will implement the latest sports betting law. Last spring, Gov. Janet Mills legalized sports betting which would give the four tribes the ability to monopolize the online gambling sector.
Operators that gained market access don’t have to accept bets in order for sports wagering to be considered legal within a state’s borders. This was evident in many other states, including Ohio and Massachusetts.
The earliest projection for the market to go live in early April, but it could take until January 2024 for the market to execute a full launch. Milt Champion and other members of the commission to address the public, establish rules, and approve licenses for both online and brick-and-mortar providers.
Any effort for a quicker launch is not feasible with events such as the Super Bowl and March Madness coming up. Daily fantasy platforms took a year to enter the state; however, the Commission went through some issues because multiple amendments needed to be made.
What Do the Experts Know So far?
Legislative sessions and the days leading up to any launch are the most challenging aspects of the sports betting industry. The reason is there are too many internal and external factors that come into play.
Recently Gov. Janet Mills commented,” I was nervous about being the fifth or sixth state to launch, I feel more comfortable being 34 or 35,” Champion said, adding the rules look similar to the states he based them on. “We’re not trying to change things here in Maine. We’re not going to reinvent the wheels.”
Other states launching to start the year gives everyone ample time to make things right. In addition, Gov. Mills stated that Champion and his staff have looked into other states to develop rules for Maine’s sports betting market. The states include Colorado, Indiana, Massachusetts
Michigan, Ohio, Tennessee, West Virginia, and Wyoming.
There are still some rules that the public knows; a 10 percent tax rate based on revenue and not allowing operators to deduct promotional credits at the end of each month.
Many Unknowns Remain In the Market
According to the projections, the state could bring in $3.8 million to $6.9 million in tax receipts annually. On the other hand, the tribes would receive 50 percent of all the wagers made on mobile platforms.
According to the proposed rules, entities such as FanDuel and DraftKings will receive at least 30 percent of revenue from sports betting. However, it’s unknown how many sportsbooks will look to gain market access in the state.
As far as the numbers say, there could be up to 10 companies that could look to conduct business in the state. This also includes the state’s off-track betting facilities.
Each bookmaker is allowed to establish up to four skins in the state, which translates to one per each of the four tribes. The tribes are not required to use all four licenses, and their plans for them are unknown until their applications are submitted, according to Champion.