The Maryland internet gambling proposal made its initial appearance in the Senate, igniting discussion.
The proposal was first presented in the Senate committee on March 26th, following its passage in the House, but it came with a number of unsettled matters.
The proposal, which passed the House by a vote of 92 to 43 on March 14th, has encountered resistance in the Senate due to worries about harming traditional casinos and heightened gambling dependence.
HB 1319 would permit internet casinos statewide, a state with a developed physical casino market and which launched digital sports betting in November 2022.
Internet casinos have the potential to be highly successful if online wagering is any indicator. Despite being the 14th most populated state, Maryland has already ranked among the top in sports betting volume, setting records in its initial five days.
However, the legislative session is running out of time. The General Assembly is scheduled to conclude on April 8th, but the proposal, which passed the House on March 14th, arrived in the Senate two days later and has since stalled in the Budget and Taxation Committee.
This delay could mean that the committee doesn’t have enough votes to advance Maryland internet casinos, and legislators are still negotiating.
Web-based gaming is already occurring in Maryland,” Vanessa Atterbury, a spokesperson for the proponents, informed the panel. “It’s against the law. Individuals are engaging in online gambling with operators in Curacao or other distant locations via their mobile devices or computers, not within Maryland. We have a duty to manage this market and oversee it.”
The legislation would allocate 1% of the tax income to PG and RG initiatives.
HB 1319 was one of several pieces of legislation presented to the committee on Tuesday, without any verbal public testimony. The bill’s sponsors were permitted to explain their proposals, and committee members posed inquiries. Committee Chair Guy Guzzone did not specify when or if a vote would be scheduled.
Atterbury outlined the bill, including mentioning that funds would be utilized for responsible and problematic gambling issues, and that worries about market displacement were overblown.
Atterbury cited numerous studies that indicated 1% of the population has or is at risk of experiencing gambling problems. According to the National Council on Problem Gambling, this figure is consistent with those who will develop “serious” gambling issues, but the organization anticipates another 2%-3% of Americans to be at risk.
The legislation allocates 1% of the tax income to fund problematic gambling and responsible gambling programs.
Maryland’s online casinos could be the final ones.
Atterbury addressed concerns about market displacement, noting that the bill also includes a $10 million fund for existing casino employees.
Advocates for internet gambling firmly believe that a mutually beneficial connection exists between online and physical offerings, with minimal business losses. Conversely, critics argue that this might hold true for large enterprises offering both options, but for businesses solely operating physically, they believe there’s a greater likelihood of losing market share.
Senator JoAnne Benson referenced a recent study conducted by the Data Analytics and Sports Betting Research Department at Morgan State University, which she deemed “devastating for people of color” as it would likely result in job losses.
Legalizing online casinos in 2024 has proven to be a difficult endeavor for various reasons. State legislative bodies in Illinois and New York have abandoned the initiative.
Maine’s efforts came to a standstill in late February as lawmakers remained divided on the advantages and disadvantages during a working session.
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