Maryland Considers Legalizing Online Casinos

Maryland Lawmakers Eye Legalization of Online Casinos with New Legislative Push

Maryland has embraced online sports betting, and now lawmakers are exploring the next step: legalizing online casinos. With significant revenue potential and public interest, Maryland is poised to expand its gambling landscape, aiming to boost the state economy and create new revenue streams.

Maryland Moves Toward Online Casino Legalization

Following the successful launch of online sports betting, Maryland lawmakers are setting their sights on legalizing online casino play. Senators Ron Watson and Nancy King have introduced SB 267, a bill that could pave the way for Maryland’s six video lottery facility operators to offer online casino games.

Senator Watson, discussing his motivation for the bill, told Gamingo News: “Now that people see the revenue from sports betting, the hesitation is gone. Casinos are valuable to Maryland’s economy, and online gaming can provide a stable revenue stream, especially if we face another pandemic where traditional casinos might not generate any money.”

This proposal marks Maryland’s first serious attempt to legalize online casino gambling, representing a significant shift in the state’s gaming policy. However, it’s the start of a complex journey that will involve gaining legislative and voter approval.

Key Details of the Proposed Maryland Online Casino Bill

The 10-page bill outlines a framework for regulating internet gaming in Maryland, setting the stage for a fully licensed and regulated market. Key components of the proposed legislation include:

• Regulation: The State Lottery and Gaming Commission would oversee all online casino operations.
• Licensing Fees: Operators would pay an initial licensing fee of $500,000 for a five-year license, with a renewal fee based on 1% of average annual revenue over the previous three years.
• Taxation: Online casino revenue would be taxed at 15%, with deductions allowed for promotional play and credits before tax calculations.
• Revenue Allocation: State tax revenue, minus regulatory expenses, would be directed to Maryland’s Education Trust Fund.
• Multijurisdictional Agreements: The bill allows the governor to enter into gaming agreements with other jurisdictions, expanding gaming opportunities if federal law permits.

Watson emphasized, “We have time to refine this bill. We looked at other states to create a structure that suits Maryland’s needs, and we’re open to adjustments to ensure the final product is beneficial for everyone.”

Potential Impact on Maryland Casinos

The proposed legislation would enable the state’s six existing casinos—MGM National Harbor, Horseshoe Casino, Live! Casino and Hotel, Ocean Downs, Rocky Gap Casino Resort, and Hollywood Casino—to participate in the new online market. Each of these casinos has already expanded into sports betting, first with retail operations in 2021 and then online in 2022.

Watson, a passionate poker player with firsthand experience in major poker events, is particularly excited about the potential for online poker to be included under the “casino-style games” banner. This aspect of the bill could create new opportunities for players and increase participation across the state.

Addressing Responsible Gambling and Inclusivity

The bill includes several responsible gambling measures to mitigate problem gambling, such as prohibiting advertising to vulnerable individuals, displaying gambling hotlines, and providing tools for players to set deposit limits and suspend their accounts temporarily.

Additionally, Watson is committed to ensuring that minority-owned businesses benefit from this new industry. He plans to work closely with the Maryland Black Legislative Caucus to find ways for these businesses to participate meaningfully in the state’s iGaming landscape.

Watson stated, “In sports betting, we ensured minority representation. This online casino bill will be no different. We’ll work with colleagues to make sure the benefits are equitably distributed.”

The Path Ahead: A Two-Year Process

Watson sees 2024 as the year to refine and pass the bill, with the goal of placing the measure on the November 2024 ballot for voter approval. Given Maryland’s constitution, expanding commercial gambling requires public backing, and Watson is optimistic about gaining the necessary support.

He added, “We have time to get this right. We might set up a summer study group to hammer out the details, but I’m confident we’ll have a bill ready by next year that Marylanders can support.”

Maryland’s potential legalization of online casinos represents a significant opportunity to enhance the state’s gaming industry while providing critical funding for public services. With lawmakers like Watson leading the charge, Maryland could soon join the growing list of states embracing regulated iGaming, offering residents a safe, legal, and enjoyable online casino experience. As the legislation progresses, the focus will remain on crafting a framework that balances growth, responsibility, and inclusivity, setting the stage for a new era of gaming in the Old Line State.