While the launch of sports betting in Maine is still months away, some of the industry’s largest sportsbooks are unlikely to participate due to what they see as an unequal revenue-sharing model.
FanDuel and DraftKings Opting Out
Maine is in the process of legalizing sports betting, but the rules and regulations are causing concern for potential operators. In-person sportsbooks are allowed at OTBs, casinos, and race tracks, but the requirements for online platforms are deemed burdensome, making participation and competition difficult.
The state law includes a 10% tax rate on sports betting revenue, and the four tribes in Maine can partner with an online sports betting operator or share a single provider, with the tribes receiving at least 50% of online sports betting revenue. Sports betting operators are entitled to at least 30% of the revenue but can request up to 40%.
Because of the state’s agreement with tribes, who would govern online sports betting, a number of Sports Betting Alliance members, including FanDuel and DraftKings, will not apply for online Maine sports betting licenses. The SBA also includes BetMGM and Fanatics Sportsbook.
A statement from the SBA (provided to Legal Sports Report) said: “The experiences of dozens of states show that the best way to capture the betting that currently takes place using illegal offshore bookies is by creating a robust and competitive legal marketplace.”
Operators Also Did Not Comment on the Proposed Rules
The Maine Gambling Control Unit (MGCU) released its initial proposed rules for sports betting in January, but they have since revised them after receiving 581 comments from 24 parties during a public hearing period.
MGCU director Milton Champion stated that the comments came from attorneys and he is not sure which sportsbooks are interested in Maine. He is not too concerned about their absence, but the MGCU has not received an application since last month.
There is industry concern about Maine’s proposed advertising restrictions. Operators cannot use celebrities in TV advertisements, and every TV commercial must be approved by the MGCU before it airs. Operators are also not allowed to deduct promotional and bonus play. The American Gaming Association sent a letter to Champion asking him to reconsider the advertising rules.
Leaders Hoping an Agreement Can Be Reached
Maine’s sports betting law gives exclusive mobile gaming rights to Maine’s indigenous tribes. Champion said he’s spoken with the tribes and said they could work with mobile gaming to negotiate partnerships but cannot sign a contract until the betting rules are finalized.
Sports Betting Launch Not Expected Soon
The slow rollout for Maine sports betting is expected to continue, with a launch unlikely to occur until at least January 2024.
Milton Champion says he and his staff want to make sure they review all 581 comments before releasing the next version of the (betting) rules proposal, which they hope to make public later this month. “We’ll go over each of the comments, either accept or reject the comment and explain why.”, he said.
Champion initially hoped that the state’s betting program could launch this summer. However, the large number of comments to review slowed things down.
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