Maryland regulators have started implementing the rule changes lawmakers want to see for retail and online sports betting sites, including content scrutineers and a crackdown on certain college partnerships.
The Maryland Lottery and Gaming Control Commission met Thursday and approved proposed amendments to the state’s regulations for legal sports betting.
Some of the Maryland sports betting tweaks were technical, such as clarifying bond requirements for brick-and-mortar facilities, but a few were enacting legislative changes passed earlier this year by lawmakers in Annapolis.
One rule tweak was to implement the provisions of Senate Bill 620, “which prohibits institutions of higher education from contracting with sports wagering licensees if the licensees would profit from securing student participation in sports wagering,” a memo to the commission noted.
School's out
The amendment comes as the advertising practices of sportsbook operators remain under scrutiny from the public, regulators, and lawmakers, including in Maryland. One practice that didn’t sit right with policymakers was that some bookmakers had struck partnerships with colleges, such as the now-ended one between the University of Maryland and PointsBet.
“Further, an institution of higher education may not enter into a contract with a sports marketing entity that enters into a contract with a regulated gaming entity, or an agent thereof, if any of the entities involved receives a commission, a bonus, or any other incentive payments under the conditions described above,” a fiscal policy note by the Maryland General Assembly's Department of Legislative Services said in March. “However, an existing obligation or contract right may not be impaired in any way by the bill.”
Another approved amendment was to implement a framework for “independent evaluators” of content “provided by a sports wagering expert, sports wagering influencer, or content partner.”
Those same auditors can rate “the accuracy of predictions for sporting event outcomes,” the proposed regulation notes.
Not content with content
The rules were approved after the Maryland legislature passed Senate Bill 621 in the spring, as the legislation requires the commission to license independent evaluators that sports betting licensees can then choose to use. There is, however, no requirement for operators to hire an evaluator.
“A sports wagering licensee or sports wagering operator that advertises in the State may contract with a licensed independent evaluator,” another fiscal policy note said in April.
Thursday’s approvals breathe life into that vision, although the rules still need to clear a few more hurdles before they are finalized, such as submitting the amendments to a legislative committee for review. In the meantime, the framework is there for firms that want to get into the content-evaluating business.
“An independent evaluator and its principals and employees may not wager on a sporting event,” the fiscal note said. “An independent evaluator may not be compensated by a sports wagering licensee or sports wagering operator that uses the evaluator’s evaluation services solely for marketing materials but may be compensated for its evaluation and rating of sports wagering content.”
