Sports Wagering Proceeds - Promotional Play Exclusion - Limitation

HB 291 modifies how sports wagering proceeds are calculated in Maryland by limiting how much free promotional play (like free bets or credits) sports wagering licensees can exclude from their taxable proceeds. It requires the State Lottery and Gaming Control Commission to set a percentage limit, based on the licensee’s prior year’s retained proceeds, after the first full fiscal year of operations. This means licensees can no longer fully exclude all promotional value from their reported proceeds, instead subjecting a portion to state revenue calculations. The change directly affects sports betting operators and ensures more revenue is captured for state funds.