The Maryland online gaming legislation made its initial appearance in the Senate, triggering discussion.
The legislation was presented to the Senate committee on Tuesday, March 26, after passing the House, but it encountered a series of unresolved disagreements.
The legislation, which passed the House with a 92-43 vote on March 14, has faced opposition in the Senate due to worries about potential adverse effects, such as harming traditional businesses and escalating gambling dependence.
HB 1319 would permit online casinos statewide, a state with a well-established physical casino market and which launched digital sports wagering in November 2022.
If online wagering is any indication, online casinos have the potential to be a significant success. Maryland has already ranked among the top states in sports betting revenue, despite being the 14th most populous state and the 14th to launch betting, and setting a record in its first five days.
However, time is running out for this legislative session. The General Assembly is scheduled to conclude on April 8, and the legislation, which passed the House on March 14 and arrived in the Senate two days later, has been stalled in the Budget and Taxation Committee.
This delay could mean the committee doesn’t have enough support to advance Maryland online casinos, and legislators are still negotiating.
Maryland Representative Vanessa Atterbury informed the legislative group, “We’ve authorized online wagering in Maryland.” “It’s against the law. Individuals are betting online through their mobile devices or computers with people in Curacao or other distant locations, not in Maryland. We have a duty to manage this market and oversee it.”
The legislation would allocate 1% of the tax income to PG and RG programs.
HB 1319 was one of various proposals presented to the committee on Tuesday, with no public verbal testimony. Supporters of the legislation were permitted to explain their proposals, and committee members posed inquiries. Committee Head Guy Guzzone did not specify when or if a vote would be arranged.
Atterbury outlined the legislation, including sharing that funds would be designated for responsible and problematic gambling issues, and that worries about cannibalization were overstated.
Atterbury cited numerous studies, stating that 1% of the population has or is at risk for gambling issues. According to the National Council on Problem Gambling, this figure aligns with those who will develop “serious” gambling issues, but the organization anticipates another 2%-3% of Americans to be at risk.
The bill would allocate 1% of the tax revenue to problem and responsible gambling programs.
Maryland online casinos could be the final
Atterbury addressed concerns about cannibalization, noting the bill also includes a $10 million fund for existing casino workers.
Proponents of virtual casinos believe there’s a harmonious relationship between online and physical offerings, with minimal revenue loss. Critics contend that this might hold true for large companies providing both options, but for firms solely offering physical services, they assert that the likelihood of market erosion is higher.
Senator JoAnne Benson referenced a recent study from Morgan State University’s Department of Data Analytics and Sports Betting Research, which she characterized as “devastating for minorities” due to potential job reductions.
Legalizing online casinos in 2024 proved to be a challenging endeavor for various reasons. Legislators in states such as Illinois and New York have abandoned the initiative.
Maine’s attempt faltered in late February as lawmakers debated the advantages and disadvantages in a working session.
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