Maryland Moves Towards Online Casino Legalization

House Bill 1319 saw a decisive victory with a 92-43 vote, setting the stage for a potential referendum that could introduce iGaming to Maryland residents.

The bill, passed without debate during its final reading, aims to modernize Maryland’s gambling landscape by allowing online casino apps to operate without requiring in-person registrations or deposits. This move, according to proponents, aligns with the current trend of digital transactions and remote verifications seen in other industries, such as telehealth and online banking.

Key Provisions and Amendments

House Bill 1319, sponsored by House Ways & Means Committee Chair Vanessa Atterbeary, underwent several revisions before the vote. Notably, it rejected amendments that would have mandated in-person procedures for app registrations and deposits, a measure aimed at ensuring age verification and mitigating problem gambling.

Atterbeary argued that the existing framework for Maryland sports betting apps suffices for these concerns, emphasizing the importance of leveraging technology for efficient age verification processes.

The bill has seen significant amendments since its introduction, including the creation of a $10 million fund to support workers potentially displaced by the shift towards online gambling. It also outlines a tax structure for iGaming operators, with a 55% tax on slot revenues and a 20% levy on table games, alongside provisions for deductions based on promotional activities.

Licensing and Revenue Allocation

HB 1319 proposes a framework for up to 30 iGaming operator licenses, with special considerations for the state’s six brick-and-mortar casinos. These establishments could receive up to three licenses each, contingent upon meeting certain social equity investment criteria.

Additionally, the bill mandates a significant investment from casino operators into live-dealer online table game studios, further blurring the lines between traditional and digital gambling experiences.

A notable portion of the tax revenue generated from iGaming operations is earmarked for the Blueprint for Maryland’s Future Fund, an initiative aimed at bolstering the state’s educational system. This allocation reflects lawmakers’ intent to address pressing financial needs, including a looming budget shortfall exceeding $1 billion.

Legislative Hurdles and Industry Outlook

Despite the bill’s progress in the House, its future in the Senate remains uncertain. According to betmaryland.com industry insiders express skepticism about HB 1319’s prospects, citing differing priorities between the two chambers. A similar bill introduced in the Senate has seen little movement, indicating potential challenges ahead for iGaming legislation in Maryland.

Our Comment on the Article

The passage of House Bill 1319 represents a critical juncture for Maryland’s gambling industry, signaling a shift towards embracing digital platforms and expanding legal gambling options for residents. While the bill’s journey through the Senate remains fraught with uncertainty, its potential to generate significant tax revenue and modernize the state’s gambling infrastructure cannot be overlooked.

As Maryland navigates the complex legislative landscape, the outcome of this endeavor could set a precedent for other states contemplating similar transitions to online gambling platforms.