Representatives from Suffolk Downs and Raynham Park learned that launching their Massachusetts sports betting businesses would be more expensive. According to the State Gaming Commission, companies offering sports wagering need to pay a licensing fee of $5 million.
After receiving a Category 2 sports betting license, Raynham Park and Suffolk Downs can collaborate with up to one online betting provider.
After running into difficulty with the sports betting law, Steve Eichel, the legal representative for Raynham Park, yesterday sought the commission for clarification on the necessary license costs.
Massachusetts Sports Betting License Fees
Eichel questioned whether Raynham Park and its operational partner shared the $5 million cost of allowing sports betting at the venue or if an online sportsbook operator was under the purview of the simulcast facility’s Category 2 license.
The commission clarified the measure by a 5-0 vote, mandating that each license holder pay the $5 million licensing fee.
According to bookie pay per head reviews and news sites, the holder of a Category 2 license may provide both retail and online sports betting. However, holders of Category 2 licenses must collaborate with online sports betting operator who holds Category 3 sports betting license to offer online sports betting. Licenses in Category 3 cost $5 million.
Category 2 Licenses
The deadline for submitting applications for retail and online sports betting licenses in categories 1 and 3 is November 21. While 23 sports betting providers are qualified to apply for Category 3 licenses after submitting scoping studies to the commission in October, the state’s three casinos are anticipated to file applications.
However, the gaming commission decided by a 5-0 margin to let applicants for Category 2 licenses submit their paperwork by the deadline of November 21.
According to sportsbook pay per head sources, representatives from Suffolk Downs and Raynham Park stated they are still a few weeks away from forming arrangements with their respective sports betting companies. By November 21, neither claimed they would be ready to file a licensing application.