After a slow start to the year, sports betting legislation continues to build momentum as another state is about to legalize the industry. This time it is Maine, as both branches of the state legislature recently approved LD 553, which would authorize sports betting within state borders.
The bill was introduced at the end of January, but it was largely kept on the down-low while negotiations were being made behind the scenes, with no further actions taken until mid-June. From there, it was out of committee and through both the House and Senate, including amendment approval, in two days.
The legislation authorizes up to eleven brick-and-mortar licenses, corresponding to the eleven land-based gambling venues in the state: the two casinos, four tribes, four off-track betting parlors, and the lone harness racing track.
Unique Approach to Online/Mobile
That is all pretty standard as far as sports betting bills go, but Maine is doing things a bit differently when it comes to online and mobile licensing. All of the brick-and-mortar licensees will be allowed to have online sportsbooks, but so will any other operator. Most of the time we have seen online gambling bills passes, any operator or provider who comes from outside of the state (say, a PokerStars or a Betfair) must partner with a licensed casino in the state. In the Maine bill discussions, this is known as “tethering.”
In Maine, though, tethering will not be required. Instead, any operator that wants to open an online sportsbook need only be a “gaming entity that offers sports wagering through mobile applications or digital platforms in any jurisdiction in the United States pursuant to a state regulatory scheme.”
Of course, they still must apply for and be granted a license, but they do not need to have any connection at all to an existing casino in Maine. Not all lawmakers were on board with this, as they preferred the tethered route, arguing that land-based businesses have been paying state and local taxes and have been hiring employees, something that should be rewarded.
State Senator Louis Luchini disagreed, telling the Portland Press Herald, “To me it’s a strange way to write a law that would require a new business to come into Maine only if they tether their license to an existing business. We don’t require Amazon to tether to existing grocery stores and we don’t require Airbnb to tether to hotels.”
The idea is to encourage the “free market” to determine who gets to operate in the state. Maine probably won’t be able to sustain too many online sportsbooks because of its limited population, so might as well encourage those who really want to compete to come on in.
The bill passed the Senate by a narrow vote after a compromise was made which would require online-exclusive sportsbooks to pay more to the state. While those tethered to casinos will pay a 10 percent tax and a $2,000 licensing fee, online-only operators will pay a 16 percent tax and a $20,000 licensing fee.
Governor Janet Mills is expected to sign the bill.
