A legislation concerning online gambling in Maryland receives a hearing, as physical casino visits decline.
Maryland is preparing for a Senate committee hearing on legislation regarding online casino gambling next week. This change in legislation comes as business at the state's six land-based casinos slows down.
Back in late January, State Senator Ron Watson (D-Prince George) introduced Senate Bill 603. This proposal would allow each of the state's six casinos to partner with no more than two online casino operators.
The proposed bill, SB 603, requires approved online platforms to pay a $1 million upfront fee. The revenue from interactive casino games like slots and tables would be taxed at 47%.
Senator Watson and his supporters believe that introducing online casino gambling could generate around $300 million in new tax money for the state. Additionally, they argue that consumers prefer the convenience of playing at home.
The Senate Budget and Taxation Committee is scheduled to consider the bill next Wednesday, the 28th of February. If it is approved in both chambers and signed by Governor Wes Moore (D), Maryland residents would be asked to vote on iGaming during the upcoming November election.
Currently, Marylanders can legally bet online through regulated sportsbooks. However, casino slots and tables are not allowed on such platforms.
Concerns over Timing
According to a recent study, iGaming doesn't necessarily hurt brick-and-mortar casinos. The researchers claim that online casinos can actually help increase revenue for land-based operators.
However, this claim is open to debate.
Casinos in Pennsylvania and New Jersey experienced small increases in earnings from their brick-and-mortar operations, 1.6% and 2.2% respectively, while iGaming grew by 28% and 16% respectively.
On the other hand, Michigan's three commercial casinos in Detroit saw gaming revenue drop by almost 3%. Online casinos, on the other hand, saw their revenue increase by more than 15%.
Maryland has not yet introduced online slots and table gaming, but in-person play at the state's casinos decreased by more than 3% last year. Collectively, MGM National Harbor, Live!, Horseshoe Baltimore, Ocean Downs, Hollywood Perryville, and Rocky Gap collected $68.5 million less in 2023 compared to 2022.
January numbers painted a similar picture, with the six casinos experiencing an 8% year-over-year reduction in casino earnings.
Union representatives, who represent the over 15K workers employed by these casinos, voice concerns about job security as a result of potential iGaming expansion. Tracy Lingo, President of Unite Here Local 7, stated that positions such as bartenders, waiters, cooks, housekeepers, dealers, slot attendants, security personnel, hosts, and others would become less essential as gamblers can now stay home to play.
The 'Big Enchilada' of iGaming
Senator Watson responds to these objections by claiming the state needs additional revenue. He says, "We have to increase revenues or reduce expenditures. iGaming is the last piece of the four-legged stool related to casinos and gaming. We need to be able to capture that revenue."
Watson also referred to iGaming as the "big enchilada."
Other concerns include gambling addiction. Watson asserts that the iGaming industry has systems in place to tackle problem gambling, including operator-initiated cooling-off periods and third-party outreach support.
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