Maryland Eyes Online Casino Legalization with New Bill SB 340

This bill is Maryland’s latest attempt to legalize iGaming after a similar effort in 2024 stalled. Unlike its predecessor, SB 340 comes with refined provisions and a stronger focus on addressing economic and social concerns, aiming to gain broader support.

Key Features of SB 340

SB 340 outlines a comprehensive plan for regulating and taxing online casino gaming in Maryland, overseen by the State Lottery and Gaming Control Commission.

Licensing and Regulation

• Eligibility: Casinos, licensed video lottery terminal (VLT) operators, and sports betting license holders can apply for online gaming licenses.
• Fees: Operators face a $1 million licensing fee with renewals every five years.
• Preference for Equity Applicants: The bill prioritizes minority- and women-owned businesses, encouraging greater diversity in the industry.

Taxation

SB 340 proposes a 47% tax on gross gaming revenue, which would rank among the highest rates in the nation. This revenue would support various state programs, including education.

Workforce Protection

The bill introduces the Video Lottery Facility Employee Displacement Fund, providing financial assistance to workers who may lose jobs due to the shift to online gaming.

Live Dealer Operations

Any live dealer activities, such as blackjack or roulette streamed online, must be conducted from studios located within Maryland, ensuring that local businesses benefit.

Responsible Gaming at the Core

SB 340 emphasizes strong consumer protections and responsible gaming measures, including:

• Enforcing strict deposit limits and banning credit card deposits.
• Requiring operators to notify players whose annual deposits exceed $2,500.
• Offering self-exclusion tools and other safeguards to promote healthy gaming habits.

A Referendum for the Voters

Like previous attempts, SB 340 requires voter approval. The bill includes a provision for a statewide referendum in November 2026, allowing Maryland residents to have the final say on legalizing online casino gaming.

HB 17: A Related Effort

SB 340 is not the only iGaming proposal on the table. House Bill 17 (HB 17), introduced earlier in January, also aims to legalize online gaming.

While HB 17 emphasizes funding public education, it shares many of SB 340’s core goals. Together, these bills reflect growing momentum for iGaming in Maryland.