The Maryland legislative session began on January 8th. Once again, lawmakers were ready to debate legislation to regulate online gambling. House Bill 17 to legalize online gambling in Maryland was filed last year by Delegate Vanessa Atterbeary. It was the first gambling legislation up for debate in 2025.
The bill outlines a regulatory framework for the State Lottery and Gaming Control Commission to grant licenses to qualified applicants. It also promotes equitable opportunities for minority and women-owned businesses in the online gambling sector.
Online gambling bills unsuccessful in 2024
Legal sports betting has been available in Maryland for some time. It went live in 2021, but Maryland online sports betting only launched in November 2022. The current bill isn’t the first attempt to introduce online gambling in Maryland. Atterbeary has introduced similar legislation in the past that didn’t succeed. A bill sponsored by Senator Ron Watson in the Senate was heard in the Senate Budget and Taxation Committee but didn’t go any further.
Detractors and proponents of online gambling
One of the reasons bills didn’t pass in 2024 was due to the opposition from land-based casino operators. Casino operators fear that legal online gambling would take tax revenue away from them. They believe it would detract from in-person experiences that support jobs and local economies.
Proponents of online gambling argue that the state would benefit from the tax revenue and retain revenue that currently goes to neighboring states offering legalized online gambling. The fact that Maryland is facing a huge budget deficit could cause a change in attitude this year.
Status of Bill 17
House Bill 17 had its first reading in the House Ways and Means Commission on January 8th. Many aspects of the bill are similar to the bill passed in the House last year. The passing of Bill 17 doesn’t mean that residents will be able to play casino games or table games on their mobile devices this year. They will have to wait a while before this is possible.
Taxation
The tax on approved online casinos would be 55% of revenue from online slots and 20% of revenue from live-dealer table games. Online casinos would be able to deduct a portion of promotional spending from revenues on a sliding scale for five years.
License applicants
Applicants for licenses will have to demonstrate their technical capabilities, financial stability, and commitment to responsible gambling practices. The bill also introduces the potential for Maryland to join the Multi-state Internet Gaming Agreement (MSIGA).
Use of funds
The tax revenue from online gambling legalization would go towards education, the development of the workforce, and responsible gambling programs. Proceeds would contribute to the ‘Blueprint for Maryland’s Future Fund.’ This is a resource for advancing public education reforms.
