Maryland Lawmakers Clash Over Online Casino Bill and Revenue Concerns
Maryland lawmakers are divided over a proposal to legalize online casinos, with some seeing it as a revenue boostwhile others fear it will hurt land-based casinos. The debate centers around Senate Bill 340 (SB 340), introduced by Senator Ronald Watson, which would allow regulated iGaming in the state.
Key Provisions in SB 340
The bill includes several major components:
- Taxation: Online gaming revenue would face a 55% tax, while live dealer games would be taxed at 20%. Operators could deduct promotional spending for five years.
- Minority Business Participation: The proposal aims to help minority- and women-owned businesses enter the iGaming market. Some advocates want lower licensing fees to improve accessibility.
- Responsible Gambling Measures: The bill would require monthly notifications to remind users about gambling risks.
Casinos Warn of Job Losses and Revenue Decline
Opponents, especially brick-and-mortar casino operators, argue that iGaming will steal customers from their businesses. Representatives from Live! Casino and Ocean Downs believe online gambling will reduce in-person visits, leading to lower revenue and job cuts.
They point to Pennsylvania, where land-based casinos lost 24% of their workforce after iGaming launched.
Critics also highlight social risks, warning that more online gambling could lead to higher addiction rates and increased underage betting. They also fear fewer casino visitors would hurt hotels, restaurants, and local businessesthat rely on tourism.
Supporters Say Legalization Will Boost Tax Revenue
Advocates argue that legalizing iGaming would eliminate illegal gambling, which generates an estimated $200 million annually in Maryland. They believe a regulated market would increase state tax revenue, potentially adding $300 million per year.
Some business owners, like Elise Cohen of Longshot’s, say online and land-based casinos can coexist without harming each other. David Rebuck, former director of New Jersey’s Division of Gaming Enforcement, also believes online casinos do not cannibalize land-based operations.
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