The state of Maine is on the cusp of launching sports betting, with an expected rollout date in November 2023. The legalization process has been a lengthy one, starting with a U.S. Supreme Court ruling in 2018. This development positions Maine to join 34 other states currently offering live sports betting, as tracked by the American Gaming Association.
The U.S. Supreme Court's 2018 Ruling
The legalization of sports betting in Maine can be traced back to a significant U.S. Supreme Court ruling in 2018, which allowed states to decide whether to legalize sports betting. This ruling, which came down in May 2018, triggered a wave of legislative activity across the country, including in Maine.
Governor Janet Mills' Role
One key player in Maine's journey to legal sports betting has been Governor Janet Mills. In 2020, she vetoed a bill attempting to legalize sports betting in the state. Despite the setback, she remained open to compromise.
In 2022, Gov. Mills reached a compromise with the state's four federally recognized tribes, granting them full control over the larger mobile betting market. The compromise left in-person betting to established casinos and off-track betting parlors.
The Pace of Implementation
Despite the progress made, Maine's implementation of sports betting has been slower than most other states. The state now seems poised to beat an initial estimate that betting could go live as late as 2024.
The process reached a significant milestone recently when the final rules for the program were sent by Maine gaming regulators to Attorney General Aaron Frey's office. This development occurred after a deadline for public comments, positioning sports betting to go live in November.
The Role of Temporary Licenses
When sports betting goes live, it will initially operate under temporary or initial licenses. These licenses will be in place by the launch day, enabling betting to begin immediately. A notable player expected to participate is Caesars Sportsbook, which has signed a mobile betting agreement with the Penobscot, Maliseet, and Mi'kmaq tribes.
The Expected Market Size
The market for sports betting in Maine is expected to be relatively small. Maine regulators anticipate no more than $6.9 million in annual revenue. Operators will be taxed at 10% of gross revenue, with the mobile segment expected to account for roughly 85% of betting.
The Path to Legalization
The sports betting law signed by Gov. Mills, a Democrat, in May 2022, took effect last summer. This put Maine on the longer end of implementation schedules across the country. Data from Victor-Strategies, an Illinois gaming consultancy, shows that states took an average of 156 days from legalization to launch in-person betting and 237 days for mobile betting.
The Role of Major Sports Seasons
The timing of the November launch coincides with several major sports seasons, including the NFL, college football, NBA, and NHL. This could potentially give sports betting in Maine a strong start despite the delay from the initially intended August launch.
Challenges and Setbacks
The path to sports betting in Maine has not been smooth. The state has encountered at least one significant hurdle, which led many to believe that the launch would be delayed until 2024. This challenge involved Milton Champion, the Maine Gambling Control Unit's Executive Director, who was placed on leave for "problematic social media posts."
The Timeline and Future of Sports Betting
Despite these challenges, Maine sports betting is now on track to beat its projected timeline. The Maine Gambling Control Unit originally estimated a launch in January 2024. However, following a streamlined planning process that drew insights from other states, the launch is now likely to happen in November 2023.
The future of sports betting in Maine is likely to be influenced by the state's unique approach to mobile wagering. Maine is carving a new path by giving control of online sports betting to its tribal casinos. This dynamic, which requires corporate operators to partner with tribal casinos to deploy their mobile services, will be closely watched by other states.
Conclusion
The November 2023 launch of sports betting in Maine marks an exciting development for the state's gambling industry. The road to legalization has been long and fraught with challenges. However, with a strategic approach that draws on insights from other states and a commitment to giving control to tribal casinos, Maine is set to carve a unique path in the world of sports betting.