Lawmakers in Maryland are making another attempt to authorize online casinos in the Old Line State as a new legislative session is set to begin.
Maryland State Delegate Vanessa Atterbeary has submitted a request to introduce House Bill 17, a piece of legislation that aims to authorize and implement iGaming across the state. The bill, which will be introduced and read for the first time on Jan. 8, proposes iGaming regulation by the Maryland Lottery and Gaming Control Commission. To be enacted, HB 17 would require a change to the state constitution requiring a referendum.
HB 17 proposes a $1 million licensing fee for operators with licenses having a five-year term limit. Under the measure, iGaming licenses are available to video lottery operators.
Revenue from iGaming would be allocated toward public education with the majority of proceeds being poured into the Blueprint for Maryland’s Future Fund. Under HB 17, the state’s problem gambling fund would also receive 1% of annual proceeds from iGaming.
Licensed operators are also required to submit a diversity plan to the state’s gaming commission that details the steps it will take to promote and ensure diversity and equality.
If enacted, HB 17 will also see the establishment of a Video Lottery Facility Employee Displacement Fund, a resource designed to help those negatively impacted by iGaming.
Previous attempts to bring iGaming to Maryland
Atterbeary has introduced HB 17 after a previous failed attempt to pass an iGaming bill.
Last year, Atterbeary introduced House Bill 1319, which mirrors the delegate’s latest legislative effort. HB 1319 was passed in the Maryland House by a 92-43 vote following a series of amendments but would later die in the Senate due to a lack of interest and cannibalization concerns regarding the potential decline in revenue for retail casinos.
HB 1319 failed to garner support in the Senate along with Senate Bill 603, an iGaming measure introduced by Sen. Ron Watson last year. The bill, which required operators to build a live dealer studio in the state, stalled in the Budget and Taxation Committee.
The authorization of iGaming in Maryland could generate more than $900 million in annual revenue, according to a study by The Innovation Group. The potential revenue would help alleviate a projected $64.7 million decline in funding for the Blueprint for Maryland’s Future Fund. The estimated decline is due to a drop in revenue at retail casinos.
The Innovation Group’s report suggested a small impact on retail casino revenue but other reports have concluded online gambling does not negatively impact brick and mortars.
