The Maryland Lottery and Gaming Control (MLGC) agency smacked BetMGM with a $145,000 fine related to jumping the gun and accepting bets before the official launch. Kerry Watson, regional vice president for government affairs at parent MGM Resorts International, didn’t like the fine, but says it’s proof positive that the Maryland regulatory system works fine.
In other words, the state does not need another level of scrutiny, like the just introduced Senate bill 621, sponsored by Senator Craig Zucker.
The bill would require sports betting operators such as BetMGM, along with influencers and content partners, to undergo independent audits. Once completed, the operators would receive a rating from the state.
“I have the opportunity to work with regulators all over the country and I can say, carefully, but surely, this is one of the best,” Watson said. “When we make a mistake, we are corrected by that agency and if we were to betray the trust of that agency, we can lose our license to operate. In terms of motivation to do the right thing, I’d say that’s a pretty good incentive.”
Maryland sports betting went live in November, but Zucker believes more oversight is needed.
“It addresses advertising, people who aren’t necessarily being honest with spreads, lines, etc.,” Zucker told Legal Sports Report. “We want to make sure we have extra protections that go above and beyond the current statute.”
Zucker partnered with SharpLink, a Maryland-based sportsbook evaluator, to come up with the bill. The company’s CEO and co-founder, Chris Adams, believes that SharpLink is one of the only firms capable to direct these audits under the bill’s language, he testified during a Senate Budget and Taxation Committee hearing March 8.
Zucker expects to modify the bill with an amendment that doesn’t impose a severe reaction to a poor evaluation, without being specific. At that point, Adams anticipated larger accounting firms such as KPMG and PwC will bid for auditing work.
The MLGC would certify companies to rate sports wagering content.
“I can assure you gaming operators are not offering guaranteed winnings on anything,” Watson said.
If the General Assembly approves the bill, and the governor signs it, it would be effective by July 1.
