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BetMGM is off to an interesting start in Maryland.
BetMGM has agreed to pay the Maryland Lottery and Gaming Control Agency (MLGCA) a $146,000 fine for accepting Maryland online sports bets without a valid sports betting license.
According to an MLGCA notice, BetMGM began accepting online sports bets on Nov. 16, 2022, through its mobile platform without being authorized or licensed to do so. Maryland issued a soft launch of its online sports betting services on Monday, Nov. 21, and launched fully on Wednesday, Nov. 23.
Largest fine in commission history
The $146,000 fine is the largest fine issued in MLGCA’s history. Prior to this violation, MLGCA Managing Director John Mooney said the biggest fine doled out by the commission was only $5,000.
MLGCA Commissioner Harold Hodges actually called for BetMGM to be levied a higher fine, describing the violation as simply a slap on the wrist for the operator.
“I’m frankly opposed to it (the settlement). I think if anything, they should have their license withdrawn until we look at it. What can we do system wide so this doesn’t happen again?” Hodges said.
Hodges asked for the vote to be tabled and to be rescheduled for a later date, which was denied by the MLGCA. He was the lone commissioner on the seven-member board to vote against the settlement agreement.
The MLGCA approved the settlement agreement with BetMGM, which allows both parties to avoid “the potential expense and inconvenience of a formal hearing.”
At the meeting, a BetMGM representative said the sportsbook accidentally began taking bets on Nov. 16 when it was preparing for its Monday, Nov. 21 “controlled demonstration.” A link was sent out to the public erroneously that redirected visitors to the live BetMGM sportsbook instead of a page that said sports betting would begin in Maryland soon.
BetMGM successfully launched in November
Despite erroneously taking bets before the universal launch date, the sports betting operator did have a successful, and legal, launch on Wednesday, Nov. 23. BetMGM was one of seven operators that launched on the start date:
Here are the online sports betting handle totals for the seven live operators:
- FanDuel Sportsbook: $89.9 million
- DraftKings Sportsbook: $69.6 million
- BetMGM: $15.07 million
- Barstool Sportsbook: $5.7 million
- Caesars Sportsbook: $3.46 million
- PointsBet: $1.6 million
Maryland currently has 12 approved online sports betting operators (including Bally Bet and WynnBET) with only seven operators currently online in the state.
The first seven operators fully launched on Wednesday, Nov. 23. In just one week of full operation, the Old Line State reported $186.08 million in online sports betting handle, which resulted in just $4,262 in online sports betting taxes for the state (we’ll get to this in a minute), according to a report from the Maryland Lottery and Gaming Control Agency (MLGCA).
In total, the MLGCA reported $219.07 million in total sports betting handle for the month of November, which resulted $704,728 in taxes for the state.
Robert is an expert on sports betting in the United States, specifically the legalization process and regulation surrounding the industry.
