This may be the last time we hear online casino talk in Maryland for a while. Let’s explore further why the online sportsbook industry in Maryland seems so uncertain.
Not Going Far
Supporters had high hopes that their state would join the growing number of US states that have legalized online casinos. However, the state Senate chose not to consider a proposed referendum that could have put the legalization of online casino-style gambling to a vote in November.
State Senator Ron Watson proposed the referendum, but it expired on Monday without any action from the Senate committee. Watson, who supports the legalization of iGaming in Maryland, had shifted his focus to the referendum after realizing that there wasn’t enough support among his fellow senators for an online casino bill that the House had passed earlier in March.
He outlined several reasons why the Senate didn’t include online casino in the state budget:
- The Senate formulated a balanced budget without relying on iCasino revenue.
- Senators sought additional time to assess the effects of problem gambling, following the launch of Maryland’s online sports betting in November 2022.
- Two out of the state’s six casinos voiced cannibalization concerns.
- Labor union members expressed fears about potential job losses in physical casinos due to online gaming.
Watson told PlayUSA he doesn’t plan to file a Maryland online casino bill in 2025. “While I could put the bill out next year, it wouldn’t move until 2026. Even if we were able to pass the bill, there would be no execution of it. So I’ll reintroduce it in 2026, and hopefully, then we’ll be able to pass a bill to add this revenue stream in the state of Maryland.”
Supporters May Have To Wait Two Years
The legalization of online casinos in Maryland hinges on the approval of voters in a general election. With the absence of a referendum this November, the next chance for securing voter consent won’t arise until 2026. Consequently, whether the legislature greenlights iGaming in 2025 or 2026 bears no significance, as voter approval is paramount.
The additional two-year delay provides an opportunity for lobbyists to collaborate with two of Maryland’s six licensed casinos that opposed online casino legalization. Both Ocean Downs Casino and Racetrack, and Live! Casino and Hotel Maryland, resisted the move, echoing their employees’ concerns about potential market cannibalization.
“I think we had a good bill,” Watson said. “I think we have a really good baseline, so there should be little to do to move it forward other than the will of the House and the Senate to make it happen.”
Proponents of the legislation argue it’s a way of intercepting the black market for unlicensed gambling and boosting tax revenue.
House Bill 1319 Did Pass in Maryland
The online casino bill, known as House Bill 1319, passed easily in the lower chamber of the state legislature and included internet gaming in its budget proposal.
However, it faced strong opposition in the Senate. Some live-casino employees were worried about losing their jobs because of iGaming, even though there’s evidence that online casinos can coexist with live casinos.
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