ANNAPOLIS, Md – A new house bill has been submitted in Maryland and some of the proceeds that sports betting would generate would go towards education.
House members have filed MD HB 1132 and it would legalize sports betting in the Old Line State. The legislation would allow for the State Lottery to conduct and operate all sports gambling in the state.
Where The Money Is Going
As the bill is currently written, state-approved lottery and horse racing operators can apply for a $300,000 license so they can offer sports betting and the renewal for the license would be $50,000. With the funds that is collected through the license cost, 80 percent of that money will go towards education. The other 20 percent will go to a problem gambling fun and local impact grants.
This is not the only money that will go towards education. The profits that a license holder gains from their sports wagering operations will be split between the license holder and the state. The state will receive 20 percent of the money and 80 percent will be kept by the holder.
The money that the state gains from the 20 percent tax will go towards state operations. That of course, includes education. The state using sports gambling to fund education is needed in Maryland.
Education Is Underfunded In Maryland
In the past, schools in the state were severely underfunded. According to the Maryland State Education Association, the public school system is annually underfunded by $2.9 billion, which is an average of $2 million underfunded in each school. The underfunding has led to more students in a single classroom for one teacher and educators having to work a second job to make ends meet.
Although the money generated from licenses wouldn’t be enough to fill in the $2.9 billion gap, the money generated from sports betting could help. There is no guarantee that the 20 percent tax would go towards education, but this bill aims to make steps in the right direction when allocating funds towards the education deficit.
This bill is attempting to go around a constitutional amendment and allow sports betting in Maryland to be legal July 1 this year. But sportsbooks will likely not be opened until a year later. Once sports betting launches in Maryland, bettors can make wagers knowing they are helping fund the states education system.