Maryland Lottery and Gaming Control Commission Awards Contract for iGaming Study
The Maryland Lottery and Gaming Control Commission (MLGCC) has selected The Innovation Group, a gaming consultancy with three decades of experience, to examine the potential gains Maryland could achieve if internet gaming were legalized.
The push for legalizing online casino gambling with interactive slots and table games started to simmer earlier this year in Annapolis city hall. Senate Bill 267, introduced in January by Senators Ron Watson (D-Prince George) and Nancy King (D-Montgomery), aimed to ask state residents if they wanted to amend the Maryland Constitution to allow web-based casinos.
However, the proposal stalled in March and couldn't garner sufficient support. Following this disappointment, state legislators urged the MLGCC to carry out an in-depth analysis of the advantages of iGaming. The hope is that the financial incentives unveiled to the General Assembly could increase the likeliness of the assembly members approving such an expansion in the gaming sector.
Tight Race for Consultancy Services
The MLGCC launched a request for proposals for the internet gaming study in early 2023. The regulatory body stated it received five submissions.
The Innovation Group's application, according to MLGCC officials, offered the most appealing deal for their iGaming investigation. The Innovation Group claims the online casino inquiry is predicted to incur $86,000, substantially below the $100,000 budgeted by the MLGCC.
Jim Nielsen, the deputy director and chief operating officer of the MLGCC's Gaming & Regulatory Oversight Division, praised The Innovation Group. "Their application is excellent," Nielsen said. "They have a skilled workforce and experience with this kind of project. We trust them as an organization."
The Innovation Group's website showcases that it offers market analyses for "iGaming and emerging technologies." The consultancy talks about their reports containing intel on market research and analytics, regulatory practices, and iGaming tactics.
Some of The Innovation Group's clients include Caesars Entertainment, MGM Resorts, The Cordish Companies, Penn Entertainment, and Churchill Downs. Each of these operators runs a land-based casino in Maryland.
iGaming Shines Brighter Than Sports Betting
Maryland currently boasts legal online gambling in the form of its mobile sportsbook services.
Regulated sportsbooks in the state have been taking remote bets through the internet since November 2022, and online sports bettors have wagered approximately $250 million every month.
As sports betting is a low-margin business, licensed sportsbooks declared $143.8 million in gross revenue from sports betting (including retail bets) after covering returns to winners and subtracting promotional play in the first half of 2023.
Internet casino gaming generates considerably more income than sports betting does. For example, in New Jersey, a state where online sports betting and internet casinos are both legal, bookmakers won approximately $763 million from players in 2022. iGaming platforms in New Jersey generated a revenue totaling over $1.6 billion.
New Jersey's iGaming tax revenue was almost $250 million, while the state's tax gain from retail and online sports betting totaled $97.8 million by the end of the same year.
Maryland has about three million fewer residents than New Jersey. However, residents in the Old Line State boast the highest median household income in the country, with the average family earning nearly $99,000 in 2022.
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Source: www.casino.org
