Maryland is currently one of the most promising states to legalize online gaming, including poker. Online sports betting began in November 2022, but lawmakers recently introduced two bills that would add other forms of online gaming.
During two hearings earlier this week, lawmakers were presented with details of each bill, revenue projections, and opinions from supporters and opponents.
Plan details
Two bills (one introduced in the House and one in the Senate) feature higher tax rates than many other states. One invoice will be taxed at 47%, and the second invoice will be taxed at 55%. Live streaming games such as blackjack that are played online by a real dealer are subject to a 20% tax. The funds will help fund education and problem gambling programs.
More states are turning to iGaming to help offset budget issues. According to recent reports, Maryland expected to face a $1.1 billion shortfall during this year’s budget process.
Lawmakers considered a similar bill last year but decided to consider this issue instead. The Innovation Group conducted a report for the Maryland Lottery and Gaming Authority that predicted this industry could generate more than $300 million in state revenue by 2029.
The bill’s sponsor, Democratic Sen. Vanessa E. Atterbeary, said the bill’s approval makes sense “to regulate and capture revenue from iGaming.”
conflicting views
Casino industry officials spoke to the House Ways and Means Committee about the potential of iGaming and the opportunity to bring people already involved in offshore online gambling into the legal market.
It also sought to allay concerns among casino employees that online gaming would “cannibalize” live casino revenues. Recent studies have actually pointed out that casino companies’ revenues increase when iGaming is legalized.
“This complements what we offer at brick-and-mortar casinos.” MGM Resort Executive Rick Limardo said: “People using computers don’t get the same experience they get at our facilities.” He said online gaming has the potential to “generate meaningful tax revenue and modernize the state’s gaming industry.” He added that there is.
Representatives from Horseshoe Casino agreed, doubting that legalization would result in job losses at live casinos. However, Mark Stewart, executive vice president and general counsel of gaming and hospitality company Cordish Company, expressed opposition to the company’s plan. Cordish runs Live! casinos, but we don’t think now is the right time to legalize them.
“Many of the people who are pushing iGaming into the country are trying to make money with iGaming,” Stewart said. “There’s nothing wrong with that, that’s capitalism. If iGaming passes, we’ll be a gaming company and we’ll do well financially. But there’s also nothing wrong with our potential economic benefit. Regardless, we are asking you not to iGaming, and that should speak for itself.”
New York state is also currently considering legalizing online gaming.
