Maryland’s iGaming bill, SB 885, one of two sponsored by State Senator Ron Watson, is not technically dead, but it failed to make the crossover period between the two chambers, which means it is likely going to come up short.
Third Time Not a Charm
Regardless of one’s political persuasion, it is impossible to declare Maryland Democrat Senator Ron Watson a quitter. For the third consecutive year, Watson has sponsored online casino legislation, and after withdrawing the first bill earlier this month, Senate Bill 761, that would have sent the question to the voters in November, his second measure, Senate Bill 885, that would establish the regulatory framework for iGaming in the Old Line State, has stalled.
The opposition to online casino gambling emanates primarily from those who believe a 24-hour casino nestled inside mobile devices and PCs would spike gambling addiction and promulgate social costs that would outweigh any financial gains.
The second faction argues that iGaming would cannibalize foot traffic at brick-and-mortar casinos and their ancillary businesses, such as bars, restaurants, and retail shops, thereby decreasing revenue and causing job losses.
Impact on Land-Based Casinos and Jobs
Those are the reasons why only eight states have adopted online casino gambling, while 39 have welcomed sports betting into their markets. However, iGaming has proven to be a revenue driver, even more than online sports betting, which is why so many states consider it, but the political fallout for passage is often too onerous for legislators to bear, particularly due to concerns about its impact on traditional casinos and the potential for job losses in those sectors.
Likely, iGaming will again be brought up next year, but whether Senator Watson remains the torchbearer is unknown. But the same reservations will remain regarding online casino gambling, and unless there is a palpable shift in the Maryland legislature’s perspective, its passage is dubious at best.
Deficit Antidote
Maryland faces a $1.5 billion debt, necessitating additional revenue. Senator Watson believes that legalizing iGaming and taxing the revenues is preferable to ignoring the offerings of non-tax-paying offshore gaming platforms that are currently accessible to Marylanders.
“We can’t raise taxes all the time, right? We have to do better. We can’t increase fees all the time; we have to do better,” said Watson. “And we can do better if we think outside the box and stop burying our heads in the sand and do what other states around us are doing.”
Industry Backing and Revenue Potential
Senator Watson’s iGaming legislation has garnered the support of John Pappas, state advocacy director for the iDevelopment and Economic Association (IDEA), who stated, “It’s time for Maryland lawmakers to start thinking ahead and put in place the laws and rules that protect consumers who want these games, rather than simply pushing proposals that effectively kick the can down the road.”
Watson has stated that bringing online casino gambling to Maryland would deliver $1.5 billion in revenues over the first five years. It would be a financial boon to the state and reduce the chances of increasing taxes on its citizens.
Upon learning that his second measure would not advance, Watson stated, “With the challenges faced by our budget, it’s disappointing that we have failed again to move forward in modernizing gaming in the state of Maryland.”
