Although Maine lawmakers are moving rapidly to approve of a sports betting bill, several issues remain to be dealt with.
There is little opposition to legalizing sports betting, but whether casinos, OTBs or DraftKings and their mobile apps get their share most be decided. There is also the question of whether the tax rate should be low because the profit margin is so small.
Several bills have already fallen by the wayside. The next issue to address is whether to only allow the state’s two established casinos to offer sports betting.
Recently Gambling Control Unit Executive Director Milton Champion asked that any revenue be earmarked for one place except for an amount to address treatment of gambling addiction.
It’s likely that the bill that’s finally passed will include the two commercial casinos, the tribes and may allow off-track betting facilities and mobile sites to apply for licenses as long as they can demonstrate financial stability.
Casinos are asking that mobile betting be required to be based on physical locations. Otherwise, mobile providers will “eat our lunch” in the words of an OTB owner.
A lobbyist for DraftKings argued for no “artificial barriers” to placing mobile wagers.
Some lawmakers advocate allowing both, but taxing the mobile-only providers at a higher rate. Senator Louis Luchini, co-chairman of the gambling committee said he favored that approach last week.
No one expects sports betting to be a major cash cow for either providers or the state. Director Champion testified that nearby Rhode Island, which legalized sports betting last November, came way under its revenue projections.
