DraftKings Sportsbook cleared the first hurdle to join the Maryland sports betting market, getting preliminary approval from the Maryland Lottery and Gaming Control Agency (MLGCA) on Thursday, but the Boston-based legal sports betting operator still has a ways to go before it can open.
The application was filed with the name Crown Maryland Gaming LLC, a company owned by DraftKings. The license would allow for a retail sportsbook to operate at the Maryland State Fairgrounds in Timonium.
"There are no areas of concern with the licensure of Crown MD Gaming, LLC as a sports wagering facility operator or with Crown Gaming Inc. as a sports wagering principal entity," according to a public report provided to the commission.
Crown Maryland Gaming LLC and the fairgrounds signed a 10-year agreement in 2020 to operate online sports betting and retail wagering at the facility. The fairgrounds include the Timonium Racetrack and the sportsbook would be underneath the racetrack’s grandstand.
The next step is to get approval for the application and license from the state's Sports Wagering Application Review Commission (SWARC). If SWARC gives its blessing, it would go back to MLGCA for final approval, although no timeline was provided on when that would happen.
DraftKings entering crowded market
DraftKings has had its eyes on Maryland for quite some time and have been active well before the process to get a license. In addition to the 10-year deal with the fairgrounds, DraftKings signed an agreement with the Baltimore Ravens to be the official Daily Fantasy Sports, sports betting, and Free-to-Play partner of the team.
That gives DraftKings two avenues for sports betting. The racetrack would be the most logical since they are working on setting up a retail sportsbook there, but they also have the option of using M&T Bank Stadium, which also has a betting license.
Those facilities are two of 17 locations eligible for retail offerings since sports betting in Maryland was approved in 2020 and signed into law in May 2021. Five of the state’s six casinos have operational sports books, as does a bingo parlor, with some other facilities being licensed — but not yet open — including off-track betting sites, Oriole Park at Camden Yards (home of the Baltimore Orioles), and FedExField, where the Washington Commanders play.
There are up to 60 mobile and online licenses available in Maryland. However, when the state will allow online betting is still a mystery — officials at SWARC indicated recently that it could start in 2023.
DraftKings staying busy
Maryland isn’t the only state that DraftKings has been trying to enter. Fervid expansion has been the motto since 2018, with the company having either a retail or mobile (or both) sports betting presence in 18 states.
One of those states that DraftKings has residency in is Michigan, and it announced Monday that they are opening a first-of-its-kind Sports & Social venue in the fall at Somerset Collection, an upscale shopping mall located in metro Detroit.
Talks on the unique relationship began in July 2021, with a focus on launching in-stadium betting experiences, but the concept for the Somerset venue is slightly different: providing state-of-the-art audio/visual displays, made-from-scratch menu items, curated cocktails, and exciting entertainment while also offering sports betting to customers in a space of more than 10,000 square feet.
DraftKings also bought Golden Nugget Online Gaming last August for nearly $1.6 billion. But did the company grow too fast too soon?
A report provided to the MLGCA in Thursday’s meeting outlined how DraftKings has operated at a $3.05-billion loss over the last five years, as its stock price has fallen sharply to $17.43 — a decrease of 37.2% from August 25, 2021.
It wasn't enough to derail the initial Maryland application, however, while company officials have contended that they expect to be profitable by 2023.
