With just a few months to the end of the year, it is undeniable that a lot of changes have shaken Maryland’s gambling industry. These changes include increased taxes, new legislation, and record-breaking revenue. There have also been talks on whether or not to legalize online casinos.
Right now, only limited forms of online gambling are allowed in Maryland, so players usually have to turn to offshore platforms or even check out what other states, like California, with its thriving tribal casinos and cardrooms, have to offer. These options let players explore more games and experiences than they can currently access at home.
Given the fact that offshore gambling is taking revenue away from the state’s pockets and could also expose residents to the unregulated gambling market, lawmakers in Maryland are considering legalizing online casinos once and for all.
Delegate Vanessa Atterbeary, the chair of the Maryland House Ways and Means Committee, introduced a bill that would make this happen in January 2025. She proposed a similar bill to legalize online casinos last year; however, the Senate vetoed it due to fears that it would negatively impact the growth of land-based casinos.
Atterbeary’s new bill, HB 17, is aimed at providing operating licenses for online casinos. The bill also puts the Maryland State Lottery and Gaming Control Commission (MSLGCC) in charge of all iGaming activities. It also allows already existing sports betting and video lottery operators can apply for an iCasino license. Currently, it has passed the first reading in the original chamber.
Other provisions of the bill include an initial licensing fee of $1 million with a 1% annual renewal fee based on the operator’s annual revenue. Operators will be allowed to remove 20-35% of promotional play from their taxable revenue, while paying a 1% tax revenue to support responsible gambling initiatives. Other portions of the taxes will be used for education and to create a ‘Racetrack Renewal Fund’, which will be used to fund horse racing.
While operators and gamers are excited about this bill, it may not see daylight until November 2026.
Still on legislation, lawmakers have stalled a bill pushing to ban sweepstakes casinos in the state. In March, the Maryland Lottery and Gaming Control Agency issued cease-and-desist letters to sweepstakes casinos promoting their services in the state, in line with states like Michigan, Connecticut, and Delaware, which have continued to crack down on these types of casinos.
This move was followed by Senate Bill 860, which was introduced to ban any form of online gaming that offered prizes that could be exchanged for real money or its equivalent. Although the Senate passed the bill, it didn’t go through the House committee before the end of the legislative session. And even though the bill has been stalled for now, there are reasons to believe that it could be reopened in the next legislative session.
Despite these limitations, the Maryland gambling industry seems to be growing, with more revenue continuing to flow into state coffers. According to the Maryland regulator, for the fiscal year ending June 30, the industry contributed a total of $1.59 billion to the state’s programs and services. And all its gaming sectors contributed an average daily revenue of $4.35 million to the state’s account.
Sports betting and daily fantasy sports (DFS) contributed the least with $89.9 million, while casino gaming contributed the largest share with $831.3 million. Lottery sales completed the contributions with $667.2 million.
Maryland’s gambling industry remains in transition. While revenues are growing and online casino legislation is back on the table, the final outcome is still uncertain. All eyes are on lawmakers to see what direction the state will take. The next two years will be critical.
