Maryland online casino discussion begins, filled with concerns
Maryland is the focus of iGaming advocates across the country this year. With that in mind, state Sen. Ron Watson (D-Prince George) has confirmed that his iGaming bill to legalize online casino gambling will be released in 2024 and will also include multi-state poker.
Watson attempted to legalize online poker and casino gaming in 2023, but the bill never passed the Senate Budget and Taxation Committee. Despite the failure and opposition from some unions, iGaming still gained public support at the end of 2023.
Now, even before the work begins in 2024, concerns are rising again. Those questions were quickly raised at a House Ways and Means Committee hearing this month, where the committee was briefed on the Online Casino Study commissioned by the Maryland Lottery and Gaming Control Board. Research from the Innovation Group found that if iGaming is approved, revenue at land-based casinos in Maryland could drop by 10 percent annually.
In U.S. dollar terms, this would equate to approximately $218 million in revenue by 2029 if Maryland online casinos reach market maturity.
Del. Jheanelle Wilkins also expressed concern about the lack of diversity, equity and inclusion information in research. Lawmakers said women-owned and minority-owned businesses and historically black colleges and universities (HBCUs) must be addressed in the bill.
There are also concerns about potential job losses at brick-and-mortar casinos, as research found that 2,700 jobs could be lost due to reduced casino foot traffic.
Contents of the draft law
Items in the upcoming proposal include a $1 million four-year license fee. Watson had previously proposed a fee of $500,000. The new bill also proposes a 46.5% tax rate on online gambling.
The proposal includes relief for multi-state online poker. This means Maryland can join the Multi-State iGaming Agreement (MSIGA) and allow operators to expand Maryland’s networks.
Watson said online gambling could allow casinos to attract new customers and bring more money to the state.
We can play micro stakes, you can play nickels, dimes and quarters 24 hours a day, you know. Watson said. "It's just an ongoing source of revenue for the country that we don't have at the moment." "
The Maryland Lottery and Gaming Control Board said its research shows the state could generate $533 million in revenue in the first year if online gambling were legalized.
Currently, Maryland has a $400 million deficit.
Concerns remain, but voters prefer games
Maryland voters have approved expansion of gambling three times in the past 16 years. In 2008, voters approved five brick-and-mortar casinos. In 2012, they agreed for the sixth time. Voters approved Sports Betting in 2020, and it launched two years later.
Watson dismissed initial concerns, saying he believed the addition of Virginia casinos would impact Maryland's casino industry. He also noted that promotions are "one of the most valuable things" a casino can offer to attract people to a land-based casino.
They are using online platforms to promote physical products," he said.
If Watson's bill is approved and signed by Gov. Wes Moore, it would need to be approved by voters in November.
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Source: www.casino.org
