Maryland Online Casino Bill Filed; Potential for Legalization in 2025

Maryland legislators will be discussing the possibility of legalizing online casino real money games in their state that could potentially expand the iGaming market in the U.S. Proposals in the Old Line State strive to implement regulatory checks and tax digital gambling platforms while addressing concerns from land-based casino operators. 

House Bill 17 (HB0017) was pre-filed by Delegate Vanessa Atterbeary and looks to legalize and regulate online gambling through the Maryland State Lottery and Gaming Control Commission (MSLGCC). The bill was introduced at the start of the legislative session on January 8.

What are the Proponents of the Maryland Online Casino Bill?  

HB0017 proposes granting iGaming licenses to existing video lottery operators and sports betting facilities, with five additional licenses available for qualified applicants. 

Specifically, key provisions of HB0017 include the following:

Licensing fees: A $1 million application fee, with five-year renewals costing 1% of average annual revenue.  

Tax allocation: Revenue would be directed toward education, problem gambling initiatives, and horse racing funds.  

Promotional play deductions: Operators could deduct 20%-35% of promotional play in the first five years, depending on gross revenue.

Social equity applicants: Special guidelines for applicants from economically disadvantaged areas.  

Multi-state agreements: Maryland could join the Multi-State Internet Gaming Agreement (MSIGA), enabling player pooling for online poker.  

What are the reasons for the Maryland Online Casino Bill?

HB0017’s proponents highlight the bill’s focus on modernization and public benefits. Supporters of the bill argue that legalizing online gambling such as online slot games could strengthen state revenue streams without requiring tax hikes or additional public spending.

The bill is similar to one Del. Atterbeary filed last year that passed the house but didn’t get to the senate floor. One of the key tenets that legislators were concerned about was the potential of digital gambling to cannibalise retail casinos in the event that online casinos are legalized. A senate bill suffered the same fate.

Del. Atterbeary’s online casino bill takes a page out of Maryland’s liberation of sports betting in seeking to provide racial and social equity through the new industry. 

Maryland’s 2021 sports betting law instructed the seven-member Sports Wagering Application Review Commission “to seek racial, ethnic, and gender diversity” through its awarding of online and in-person sports gambling licenses.

Del. Atterbeary noted that the sportsbook law led to a lengthy delay in getting mobile sports betting operational, as a so-called “disparity analysis” by an independent third party took considerably longer than expected. 

Atterbeary also stated that iGaming should be rolled out similarly; HB0017 would encourage the State Lottery and Gaming Control Commission to favor iGaming bids that qualify as a “social equity applicant.”

Should HB0017 pass through the House and senate, Maryland will be the latest U.S. state to have online casinos legalized. This means that players within the Free State can have access to online casino bonuses they can utilize during their online casino gaming sessions to improve their potential payouts.

Ultimately, the fate of HB0017 will be on the hands of the voters.

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