Controversial DC Firm Granted Sports Betting License in MD

Below we have all of your top sports betting news for Maryland.  The state is currently home to 14 sportsbooks that include: DraftKings, PointsBet, FanDuel, Caesars, BetMGM, BetRivers, SuperBook, Barstool Sportsbook, Betfred, Fanatics, betPARX, Bally Bet, WynnBET and - coming soon - Crab Sports.

Winnings in excess of $5,000 are subject to 25% withholding for federal and state income tax purposes.

Controversial DC Firm Granted Sports Betting License in MD

(June 14, 2023) - Veterans Service Corporation, trading as Vital Services Contractors Inc., was granted a mobile sports wagering license.  That company is run by one Emmanuel Bailey.  VSC is the politically connected subcontractor of the D.C. Lottery, which currently holds a monopoly over sports gambling in Washington, D.C.  Intralot won the juicy $215 million sports betting contract back in 2019.

VSC and its relationship to Intralot were highlighted as part of the convoluted sports betting business arrangement in the District courtesy of reporting in the Washington City Paper on June 12.

D.C. regulators claim Intralot isn’t meeting the terms of its deal to run the city’s sports wagering system.  Intralot, a Greek firm, in turn blames VSC as the latter is supposed to be conducting half the work involved and apparently isn't.  And it doesn't help that Bailey appears to be Veterans Service Corporation's sole employee.  Supposedly it now lists two employees in addition to Bailey.  That second hire joining his mom.

VSC has been a lottery and gambling subcontractor for more than a decade.

“Our partnership, as vendor to the DC Lottery, has returned over $500 million to the district,” Bailey stated. 

And, in an ironic twist, Bailey cites his firm’s experience running D.C.’s sports wagering operation in obtaining a license in the state of Maryland.

VSC has partnered with Bee Fee Limited, a UK-based remote gaming software company, to offer mobile sports betting in the state of Maryland.  That deal is expected to utilize a revenue sharing model.

Bee Fee claims to have been founded in 2013 and is "a recognized global developer of sports betting and casino platforms, provider of Land-Based Points, payment service 'Paymenticon' and recognized publisher of video slot games".

SCCG Management agreed to a strategic partnership with Bee-Fee to help with its North American expansion plans late last year.

The Bee Fee/VSC venture is yet to offer a mobile site in the state but would become the 15th such app.

In D.C. the VSC website is GambetDC, which has been a disaster thus far to put it mildly.  The site is known for its poor odds, subpar interface and tech woes that resulted in an iOS failure on Super Bowl Sunday last year.

Maryland witnessed a taxable win figure of over $30 million in May, second highest since the industry launch in November 2022.

It's ten operational mobile apps reported handle of $320.2 million, up 2.2% month-over-month.

Sportsbooks licensed in the state are required to provide regulators with descriptions of promotional offers at least two days before they are set to launch.  Companies like DraftKings have argued that's not sufficient time as they would like to offer immediate promos on specific team achievements (i.e. should the Baltimore Orioles make it into the MLB post season or the Baltimore Ravens heading to the Super Bowl). 

The sportsbook industry wants to notify regulators within five days of launching a new promotion

“The submission of promotions prior to advertising/marketing efforts limits the ability to adequately consider promotions because of unknown variables which often accompany events that are attractive for sports bettors," sportsbooks argued via their proposal.

Maryland Lottery and Gaming director John Martin told The Sun, “We’re eager for Maryland’s sports wagering industry to thrive and generate funding for education and we’re also mindful of consumer protections. We provide guidance to sportsbook operators so they may bring a variety of promotions to the market. At the same time, we feel that reviewing the details of promotions before they launch is a reasonable step that’s in the best interests of consumers.”

- Frank Doyle, Gambling911.com