Maine's Lack of Sports Betting License Applications Concerns Gaming Official

After sports betting was legalized in Pine Tree State during May 2022, the belief was that would be great news. Unfortunately, a lack of interest from sportsbooks has created cause for concern and could lead to potential delays.

Brad Senkiw - News Editorat Covers.com
Brad Senkiw • News Editor
Apr 4, 2023 • 16:09 ET • 4 min read
Jaden Clayton Maine Black Bears NCAAB
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When Maine legislators approved legal sports betting in May of 2022, the thought process was that the Pine Tree State would be reaping the benefits of tax revenue some time in 2023. 

As it stands now, they may be waiting a tad longer. According to a report from The Portland Press Herald, the state's gaming commission has yet to receive a single operating license application from a sportsbook. 

Milton Champion, Executive Director of the Maine Gambling Control Unit, was hoping to have several online betting sites already going through the laborious and deep background checks that come with approving sports betting operators.

Instead, live sports wagering in Maine could be pushed back until next year. 

“I would say the timeline’s been moved up to, instead of April to January 2024, say October 2023 to January 2024. That would be the new window,” Champion told The Press Herald. “I was really looking forward to having a soft opening in June or July, and we’ll still work towards that, but right now with what we’ve received so far, it doesn’t look like it’s a process that would be rectified in that time frame.”

Why the delay?

Sports betting in Maine became official last August, but gaming officials continue revamping the rules. That could be one of the reasons why the Pine Tree State hasn’t seen movement from sportsbook operators. 

Many of them, like FanDuel, DraftKings, Caesars, and BetMGM, could be unsure of how they’ll be regulated and what changes could come after they apply for a license. 

As of now, Maine will restrict sportsbooks from advertising on college campuses or using pro athletes and celebrities for adverting, and the state won’t allow them to offer “free bets” to consumers. 

Also, Maine gaming officials are capping sportsbooks at 30% revenue, with an additional 10% allowed upon approval from Champion. That’s one of the lowest amounts in the U.S. 

Combine that with rules not being fully known for several more months, and it all adds up to being possible deterrents for Maine to get going. While it’s not likely they won’t come at all, it’s still perplexing to Champion.

“I don’t know what those reasons are,” Champion said. “If they’re waiting because they made a comment on something and they want to see if it’s going to get changed first before they apply, I just don’t know that.”

Looking for launch point

Maine is set to offer mobile sports betting through one sponsorship with each of the four Indigenous tribes in the state, as well as having retail sportsbooks operate through casinos and off-track betting locations. Champion said he’s unaware of any negotiations between those sides. 

Maine is anxious to get sports betting going as the state is projected to make upwards of $7 million a year in tax revenue. 

Plus, neighboring New Hampshire's legal sports betting has been cutting into money that should be going to the Pine Tree State. Massachusetts, another New England state, and New York, which is also a short drive, have gone live with sports betting since Maine's law was passed. 

Once sports betting goes live, sportsbooks can operate in the state through temporary licenses, but they’ll have to meet the state’s criteria based on the law, not just the gaming commission.

The clock is ticking for the New England state to capitalize on football in 2023. If sportsbook operators continue to wait and the four-to six-month vetting process begin until the fall, there’s concern that Maine won’t be able to be active by next year’s Super Bowl — which could keep some sportsbooks away even longer.

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