Maryland looks to diversity gains with new mobile betting license requirement

Maryland regulators introduced new requirements for mobile sportsbook licenses requiring the submission of a broadbase plan to encourage diversity among prospective operators.

Representatives of the Sports Wagering Application Review Commission (SWARC) greenlit the plan on Friday, with all plans required to be submitted by every licensee within 30 days of license approval.

Each plan must include strategies to increase diversity in the respective operator’s ownership and external contractor bodies used as well as details of events conducted with the aim of highlighting and encouraging diversity.

All plans must also have proposed timelines for implementation, as well as benchmarks for the achievement of its objectives.

“Diversity may include, but is not limited to, diversity based on race, ethnicity, gender, gender identity, sexual orientation, socioeconomic status, religion, disability status, and veteran status,” an addendum outlining the plan stated.

“SWARC will consider any type of diverse group where an applicant can demonstrate that an individual has been disadvantaged and, therefore, inclusion of that individual as a participant in the Diversity Plan would be beneficial,” the document added.

In addition, each applicant also must agree to make a good faith effort to meet the diversity objectives outlined in its diversity plan and to periodically report diversity metrics, which, along with the diversity plan, may be made available to the public.

However, it is understood that while a diversity plan is required, any operator whose diversity plan is or may be deficient will not have their license cancelled. The addendum comes as part of a statewide effort to increase diversity in sports betting while also levelling the playing field for local entrepreneurs against the more nationwide sportsbooks.

Previously, state officials have conducted a disparity study into whether SWARC needs to make extra effort to include minority and female-owned businesses in the state’s sports betting industry.

The analysis, concluded on August 19, found that SWARC is not able to apply any race- and/or gender-conscious criteria in its evaluation of applicants for sports betting licenses, however it can encourage licensees to be more diverse in their practices.

In commentary published as part of the sportsbook regulations in the Maryland Register, officials highlighted the economic impact of minority business enterprises (MBEs) could have on the process.

“Although an exact impact is indeterminable at this time, there may be a positive benefit to small, minority and women-owned businesses entering into the sports wagering program either through minority equity ownership or MBE participation,” the regulations state.

“The proposed action could have a meaningful impact for minority equity investors, as potential applicants for Class B Sports Wagering Facility licenses. MBE participation for contractors and vendors that provide support to the sportsbook licensee and operator could also be meaningful,” it added.

Over the weekend, the Maryland legislature’s Joint Committee on Administrative, Executive, and Legislative Review (AELR) voted to approve regulations for mobile sports betting in the state.

The approval allows SWARC to begin taking applications from operators, however, a launch in the state is not expected until at least early 2023, potentially in time for the Super Bowl.

Representatives of SWARC and Maryland Governor Larry Hogan have both called for this timetable to be accelerated to allow the state to begin taking bets while the football season is ongoing, noting the economic benefits.

Other parties have also called for an acceleration of the market launch.

SWARC should take immediate action and give emergency approval to in person betting licenses so they can launch mobile books. There is NO reason to wait until 2023. Marylanders voted Yes two years ago, it is time to move forward, now. @GovLarryHogan – push SWARC to make happen

— OmarCominRun (@RunComin) September 5, 2022

The legislative panel SWARC provides final approval for licenses in Maryland. They laid out what needs to happen before online sports betting is approved in Maryland. Chances are slim that it’ll happen before the end of the year.

— Cmoney (@ChampSantana) August 31, 2022

Good news MD! We have just 30 days of bureaucracy, followed by 45 days of bureaucracy, followed my 45-60 more days of bureaucracy until online sports betting MIGHT finally be available to you! 2+ years and counting! WAY TO GO SWARC! You useless bunch of government waste…

— Stephen Meier (@StephenMeier18) September 2, 2022