Agency seeks clarity on sports‑wagering promotions in Senate bill 102
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Summary
Maryland Lottery and Gaming officials asked the Budget and Taxation Committee to pass SB 102 to clarify the commission’s authority to limit promotional‑play deductions for sports wagers; FanDuel testified the change could let regulators effectively raise taxes on operators and push bettors to illicit markets.
The Maryland Lottery and Gaming Control Agency told the Senate Budget and Taxation Committee that Senate Bill 102 would fix ambiguous statutory language and explicitly allow the Lottery and Gaming Control Commission to set limits, by regulation, on how much promotional play sports‑wagering licensees may deduct from taxable proceeds.
Dr. Jennifer Bescott of the agency said the change responds to an Attorney General advisory and is intended to "clearly align the commission's authority" so the state can regulate promotional‑play deductions consistently with video lottery rules. She asked the committee for a favorable report.
James Hartman, state government relations director at FanDuel, urged the committee to reject the bill. "Senate bill 102 would grant the state lottery and gaming control commission the bill ability to unilaterally raise taxes on sports betting operators," he said, arguing the provision would treat promotional free bets as taxable revenue and could drive customers back to unregulated, untaxed operators that rely on aggressive online promotions.
Supporters of strict regulation said clear statutory authority would let regulators set uniform limits and preserve taxing consistency across gaming platforms. Opponents countered that the regulatory treatment of promotions is a policy decision that affects industry competitiveness and consumer migration to illicit markets.
The committee did not take a final vote during the hearing; members heard testimony and questions and will decide next steps in a future work session.
