LD585 which legalizes both retail and online sports betting came into effect in the state of Maine on Monday. However, residents of the state may not be able to place any wagers for as much as a year.
Speaking to the Portland Press Herald, Milt Champion, executive director of Maine’s Gambling Control Unit (GCU) said that the state was aiming for a perfect launch and that there was no need to rush the implementation of the law.
“I’m basically looking at a window between April 2023 and January 2024, just to be on the safe side of things. It’s not an easy process. We’re not trying to shut it down. We just want to do it right.”
If sports betting in Maine doesn’t launch until January 2024, it will be one the longest periods a state has waited for an official launch following the passing of legislation.
According to Champion, the state does not expect to generate significant revenues from sports wagering with early estimates suggesting that the industry will be worth around $3.8 million to $6 million in taxes each year. This is in part due to the low population but also the 10% operator tax rate which is much lower than the national average of 19%.
Maine’s sports betting tax rate pales in comparison to neighboring New Hampshire’s rate of 51%. The state collected $23.9 million in taxes throughout 2021 alone. This is the same rate as New York which has quickly established itself as the most lucrative sports betting market in the USA since mobile sports betting launched in January of this year. The Empire State has collected over $183.4 million in taxes since April.
According to Maine’s sports betting legislation, four Native American tribes have exclusive access to online sports betting. Each will pay an operator fee of $200,000 for a period of four years. Each tribe can then partner with an established online sports betting provider but such partnerships incur an additional fee of $40,000.
The tribes will be the only entities that qualify for mobile sports betting licenses in the state. Meanwhile, the state’s two casinos — the Hollywood Slots Hotel and Raceway and Oxford Casino — will be allowed top launch retail sportsbooks as can Maine’s six off-track betting properties. However, these locations must compete for one of four retail licenses.
*Updated 24th January 2023 – Read our exclusive interview with Milt Champion.
An experienced iGaming commentator and analyst based in New York City - Jenny reports on regulation and gambling industry news and events.