Sports Betting License Approved, But Waterfront Venue Faces Pushback In Anne Arundel

RIVA, MD — A waterfront venue was recently approved for a sports betting license in Anne Arundel County. Neighbors are pushing back, however, hoping to prevent gambling near their Riva homes.

The Sports Wagering Application Review Commission, also known as SWARC, awarded a sports wagering facility license to Michael's on the South River on Feb. 15. A video of that meeting is posted here.

Kathe P. Hospitality, founded in 2009, runs Michael's on the South River. The business currently holds weddings in its 225-person reception hall, located at 3027 Riva Road next to Mike's Restaurant & Crabhouse.

"With changing times, I decided to apply for a Sports Wagering License and turn the venue into a destination sports wagering bar and restaurant," President Kathe Piera said Dec. 2, 2022 in a public letter to SWARC. "Our all-minority leadership entity is eager to continue the upstanding tradition of strong work ethic and successful small-business enterprises."

If Michael's on the South River converts into a sports wagering facility, Piera plans to move her catering and events business to Mike's Restaurant & Crabhouse.

Neighbors Push Back

Some locals worry that sports betting would bring crime and traffic to the adjacent residential neighborhood.

Community activist Luis Ricardo started a petition on change.org outlining these concerns about three weeks ago.

A total of 2,179 people had signed the petition opposing the facility by the time Patch posted this story.

"The proposed Destination Sports Betting Venue for 'Michael's on the South River,' is terrible for the neighborhood because it will likely lead to decreased family safety, increased traffic, and decreased property values," Ricardo said on the webpage. "Furthermore, decisions about our community have been made without our input."

SWARC is tasked with determining if a sports wagering business is in the public interest. Ricardo alleged that the commission did not consider how this license would affect Riva.

"SWARC failed to apply proper rigor in their application approval," Ricardo said. "Also, SWARC has a dubious claim for public interest when awarding yet another sports betting license. Practically, the only benefit is to the owners of 'Michael's on the South River.'"

Related: Online Sports Betting Debuts In Maryland

Chair Thomas M. Brandt Jr. said SWARC's evaluation of public interest is limited to what's written in Maryland's law. SWARC does not deny applications based on zoning and location obstacles. It only determines if they meet the licensure requirements.

"SWARC's public interest considerations regarding applicants are limited to the criteria that are within our purview," Brandt said at SWARC's meeting. "That is the applicant's business plan, its ability to generate revenue for the State of Maryland and its ability to create jobs."

Venue Responds To Concerns

Michael's said it is "aware of numerous community concerns."

"We want to hear the questions and concerns of the neighboring communities and have an opportunity to explain the proposed plans for the facility and work in a collaborative manner to clear up any confusion or misperceptions," Michael's said in a statement on its website.

The business hosted a meeting on Feb. 20 to start these talks. Opponents showed up wearing red clothing and holding signs, Ricardo said.

Ricardo thanked Michael's for hosting the forum. He also said the local County Council member, Shannon Leadbetter (R-District 7), did not oppose the venue outright.

"They are business people and will continue pursuing the sports gambling venue," Ricardo said in a petition update. "And though, Leadbetter received a warm welcome from her old neighborhood, sadly she will not fully commit to our cause."

Next Steps

On Jan. 26, the Maryland Lottery and Gaming Control Commission found Kathe P. Hospitality qualified to host sports betting. That commission then forwarded the application to SWARC to officially award the license last month.

The conversation now turns to zoning. During SWARC's meeting, lawyers said a zoning change is required to convert the venue into a sports betting facility.

Peter Baron, the chief strategy officer for County Executive Steuart Pittman (D), confirmed that the property's current commercial zoning does not permit gambling.

Baron said betting is only allowed at sites zoned for gaming. These include Live Casino & Hotel, the Laurel Park racetrack and the county's bingo parlors.

County law prohibits on-site gambling outside of these areas, so the zoning must change for Michael's to use its sports wagering license.

"There is not a sports wagering provision in our county zoning code," Baron told Patch in an exclusive Thursday interview. "Any gambling activities are limited to certain zoning districts."

Michael's could try to rezone its property to allow gaming, but that would be a lengthy and challenging process.

Baron said Michael's is more likely to retain its current zoning designation and ask the County Council to pass an exception to let it host sports betting on-site.

This would not change what's allowed on other properties with the same zoning as Michael's. The zoning exception would only apply to the new facility.

Any County Council member can file a bill to change these zoning permissions, but the local representative is usually the one to initiate case-by-case legislation like this.

"Any council member can bring up any bill," Baron said, noting that a zoning exception would need four of seven County Council votes to pass. "Typically, there is councilmanic courtesy."

Anne Arundel County's legislation log shows that there are no active zoning bills seeking to amend what's allowed on Michael's property.

Patch asked Leadbetter if she supports sports betting at Michael's. The County Council member has not yet responded to our request for comment.

Michael's has not replied to our email either. We will update this story if we hear back.

It is not yet clear when sports betting could begin at the facility.

Michael's still has to select a sports betting partner, also known as a sportsbook. It must also submit a diversity plan to SWARC by March 17.

The venue would similarly have to pass an inspection to show that all systems are working properly before it could open for business.

Preliminary Venue Design

Early sketches of the facility suggest that it would seat about 130 people. There would be a bar and high tops along with dining tables and a VIP room.

Twenty-four TVs would line the walls. The building would also house a kitchen and a secure cashier.

Baron said the venue's Class B–2 sports wagering facility license is the lowest tier of gaming and only allows the venue to have self-service betting kiosks.

These eight kiosks would lie at the center of the room. They could only accept about $3 million in wagers per year, Baron said.

Patrons would have to be at least 21 to enter.

The plans do not mention any slot machines or table games.

A preliminary design of the space is posted at this link.

Visit michaelsonthesouthriver.com, call (410) 956-2784 or email mikesbar3030@gmail.com to learn more about the next potential sports betting host.

For gambling help, head to mdgamblinghelp.org or call 1-800-426-2537.

Do you know a business that's opening, expanding or closing in Anne Arundel County? Email jacob.baumgart@patch.com with the details.

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