BetFred, partnered with Long Shot’s OTB in Frederick, has struggled to gain traction in Maryland’s competitive sports betting market. As a result, the company has decided to shutter its retail and digital sportsbooks over the summer. The closure is set to roll out in two phases: BetFred will close its brick-and-mortar location on June 30, while its digital platform will be taken down by July 31.
Maryland’s unique wagering law makes provisions for over 15 “Class B” licenses, specifically designed for OTBs, bingo halls, and similar businesses. This legislative framework was crafted to broaden the scope of participation in the sports betting market beyond just professional sports teams and large-scale casinos. Long Shot’s, a vocal advocate during the legislative process, highlighted the importance of an inclusive lens that allows small businesses, as well as women- and minority-owned enterprises, to enter the betting space.
According to John Martin, Director of the Maryland Lottery & Gaming Commission, Long Shot’s will proceed under a new partnership for sports betting, though he refrained from specifying the new partner. “Long Shot’s and BetFred reached a mutually agreeable parting of the ways, which is not uncommon in this industry at this stage,” Martin stated. “This is not the first occurrence of its kind in Maryland, and I believe it won’t be the last.”
While BetFred prepares its exit, other players are gearing up to enter Maryland’s flourishing sports betting market. Bally’s is on the verge of launching its Bally Bet digital platform, and Veteran’s Service Corporation (VSC) is also set to introduce its services. Additionally, another company, Betr, is currently in the application process and awaits consideration by the Sports Wagering Application Review Commission next week.
VSC has already earmarked July 1 as its launch date. Operating the digital betting platform Bee-Fee Limited, VSC provided a demonstration of its capabilities in May. This British-based company has previously secured a footprint in the U.S. market by functioning as an Intralot subcontractor in Washington, D.C. Meanwhile, Bally Bet, which plans to expand its operations to Massachusetts this summer, also aims to go live in Maryland in July. Bally’s qualified for its digital license in 2022, making it well-positioned for this upcoming launch.
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Maryland has seen substantial growth in its sports betting industry. In May, the state’s sportsbooks’ handle was 34.8% higher than it was a year earlier, indicating steady momentum in this burgeoning market. Maryland’s legal framework allows for up to 60 online sports betting platforms, including those that are tethered to professional sports teams and small businesses. Additionally, lottery partners may opt to place betting kiosks within their premises, further increasing accessibility for retail bettors.
The modernized structure of Maryland’s sports betting law was carefully designed with inclusivity and opportunity at its core. During its conception, lawmakers emphasized the need to democratize market access, ensuring a diverse range of participants. This inclusive approach was warmly received by small business owners as well as women- and minority-owned organizations, who viewed it as a golden opportunity to tap into the lucrative world of sports betting.
As part of this initiative, the legislative framework categorized participants into different classes. “Class B” licenses were created explicitly for establishments such as OTBs, bingo halls, and related enterprises. This categorical inclusion was aimed at democratizing sports betting operations, making them more accessible to smaller entities rather than being monopolized by large casinos and professional teams.
While the entry and exit of operators such as BetFred and VSC are typical in the evolving sports betting landscape, they highlight the dynamism of this industry. The constant churn is reflective of an ecosystem that is keen to balance competitiveness with inclusivity. For Long Shot’s, the end of its association with BetFred opens up new avenues for collaboration and growth. Industry insiders speculate on the potential partnerships that Long Shot’s might pursue next, with many eyes keenly watching who will step up to fill the vacuum left by BetFred’s departure.
As the market continues to mature and evolve, Maryland’s approach serves as a model for other states looking to strike a balance between large-scale commercial interests and the inclusion of smaller, diverse business ventures. The growth in the state’s sports betting handle is a testament to the robust, yet flexible, legal framework that governs this industry.
In closing, as BetFred exits the stage, the entry of new players like Bally’s and VSC signify the relentless evolution of Maryland’s sports betting market. This churn not only fosters a healthy competitive environment but also ensures that diverse businesses have a fair shot at success. With legislative foresight and continued market monitoring, Maryland is poised to remain a thriving hub for sports betting in the years to come.
