Sports Wagering Proceeds - Promotional Play Exclusion - Limitation
HB 291 would change how Maryland defines “proceeds” for sports wagering by addressing free promotional play offered by licensed sportsbooks. Under current law, certain amounts wagered or credited through promotions can be excluded from proceeds; this bill narrows and clarifies that exclusion by stating that money given away as free promotional play and used by players to bet on sporting events is not included in proceeds, but only up to a limit set by regulation.
The bill gives the State Lottery and Gaming Control Commission authority to establish, by regulation, a cap on the amount of promotional play that may be excluded from proceeds. That cap would apply after the first full fiscal year of operations and would be tied to a percentage of the prior year’s retained proceeds for either retail sports wagering facilities or mobile sports wagering licensees, depending on the license type. The measure is scheduled to take effect July 1, 2026.
HB 291 would amend Section 9-1E-01 of the State Government Article, altering the statutory definition of “proceeds” for sports wagering licensees. The practical effect is to limit how much promotional betting credit can reduce reported proceeds, which can affect the calculation of revenue subject to state oversight and potentially influence tax, fee, or reporting obligations tied to sports wagering operations. It also expands the Commission’s regulatory authority over sportsbook promotional practices.
The available context suggests the bill is a departmental request from the Lottery and Gaming Control Agency and was assigned to the House Ways and Means Committee, which generally indicates an administrative or technical policy adjustment rather than a highly partisan measure. No vote record or committee testimony is provided, so there is no evidence of strong public opposition or support in the materials supplied. Overall, the bill appears to have a neutral-to-supportive administrative posture focused on regulating sportsbook accounting practices.
The main point of potential contention is the limit on promotional play exclusions, which could be viewed by sports wagering operators as restricting a common marketing tool and reducing flexibility in promotional spending. On the other hand, regulators and state revenue interests may favor the cap to prevent overly broad deductions from proceeds and to ensure a more consistent revenue base. Any disagreement would likely center on the size of the cap, how it is calculated, and whether it should differ for retail versus mobile licensees.