A significant legislative effort to expand Maryland’s gambling industry by legalizing online casinos is currently being deliberated, stirring vigorous debate and facing potential roadblocks in the Senate. The proposal for a statewide online casino, referred to as HB 1319, successfully passed the Maryland House with a majority of 92-43 votes on March 14th. However, its transition into the Senate, which began on March 16th, has been met with several concerns, notably the possibility of adverse effects on brick-and-mortar casinos and a rise in gambling addiction.
The bill’s reception in the Senate highlights the ongoing conflict between modernization efforts within the gambling sector and the associated socioeconomic implications. Maryland, a state with a well-established retail casino market, has noted the potential for online casinos to thrive; a perspective bolstered by the state’s performance in sports betting handle rankings, where it features prominently despite the comparative size of its population. Maryland’s novice venture into digital sports betting in November 2022 demonstrated lucrative results, including a record-setting handle within the first five days of operation.
HB 1319 looks to capitalize on this potential within the casino domain, yet time constraints challenge its progress. With the General Assembly scheduled to adjourn on April 8th, the bill has been stagnant in the Senate’s Budget and Taxation Committee since its arrival, suggesting a struggle to garner sufficient support for progression.
Lawmakers continue negotiations behind the scenes, responding to the imperative voiced by the bill’s sponsor, Delegate Vanessa Atterbeary. The delegate emphasized the necessity of harnessing and regulating the market for online gambling, which, albeit currently illegal, persists through offshore entities. She impresses the importance of capturing this revenue stream for the state and enforcing regulations to ensure responsible gaming.
No public testimony accompanied the bill’s submission to the committee; however, sponsors were granted the opportunity to provide descriptions, and legislators engaged in questioning. Committee chair Guy Guzzone did not disclose a timeline for a vote. Atterbeary articulated the bill’s details, highlighting that a percentage of the tax revenue would be allocated for responsible and problem gambling initiatives. Notably, 1% of tax dollars would contribute to these initiatives, echoing the concerns surrounding gambling addiction. The National Council for Problem Gambling estimates that while roughly 1% of the population may develop a severe gambling problem, an additional 2-3% could be at risk.
Discussion around the bill also addressed the issue of cannibalization – a concern for many brick-and-mortar operations. Atterbeary refuted the fear, citing studies and mentioning a $10 million fund dedicated to supporting existing casino workers. Advocates for the online casino argue that the synergy between virtual and physical platforms minimizes the loss of business, although skeptics maintain that establishments limited to retail operations could disproportionately suffer.
Senatorial voices raised concerns over potential socioeconomic impacts, with Senator Joanne Benson referencing a new study from Morgan State University’s Data Analytics and Sports Gaming Research department. The study suggests that the online casino could have a particularly detrimental effect on people of color regarding employment opportunities.
Legalizing online casino gambling has proven to be a stumbling block in other states as well, with legislatures in Illinois and New York abandoning the effort altogether. Maine also faced a standstill in late February, with a work session revealing a division of support versus opposition among lawmakers.
The unfolding scenario in Maryland captures a broader debate playing out across the country, as states grapple with the balance between innovation in the gambling industry and the social ramifications that accompany such a shift. As discussions and negotiations continue, the fate of Maryland’s online casino bill hangs in the balance, with just a short window remaining before the state’s legislative session concludes.
