Maryland hoping to plug financial shortfall with online casino bid

Article by : Charles Perrin Jan 7, 2025

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Maryland is placing an emphasis on finances as it puts an online casino bill at the forefront of the agenda.

Sen. Ron Watson and Del. Vanessa Atterbeary pre-filed an online casino bill last month that will be officially filed on January 8 when the new legislative session opens.

HB17, which would enable iGaming to be regulated and monitored by the Maryland State Lottery and Gaming Control (MSLGCC), bears resemblance to the previous bill that passed the house last year, but ultimately it failed to make it to the senate.

And it seems that a potential financial shortfall is the driving factor behind the state renewing its effort to greenlight online casinos.

Indeed, it is predicted that the deficit for the fiscal year 2026 will be $2.7 billion, and Watson, who joined the Senate Spending Affordability Committee, insists the state needs to be “prudent” to tackle this.

Giving his thoughts, Watson said: “The reason I changed my mind is because the revenue picture has worsened and the governor stated that all options are on the table.

“This is an option. Prudence dictates that this is available should the need arise as an alternative to raising taxes.”

Supposedly, the deficit facing Maryland is the biggest that the state has had to deal with in 20 years.

Tax proceeds from iGaming would go towards bolstering education resources.

The application fee would be $1 million, and among the other guidelines set out in the bill include:

• The initial licensing fee would be $1 million, and 5-year renewals would equate to 1% of an operator’s annual revenue.
• Through the first 5 years after legalization, operators can deduct up to 35% of promotional play depending on gross gaming revenue.
• 1% of tax revenue would be set aside for improving problem and responsible gambling initiatives.

The proposal would also pave the way for multi-state internet agreements with digital poker thrown into the mix.

There are, of course, obstacles in the way. Among those who have expressed concerns include Maryland State President Bill Ferguson and Gov. Wes Moore.

Financial need is a legitimate concern, but the online casino bill still has plenty of hurdles to clear, so only time will tell.