Online Casino Bill in Maryland Advances to the Senate

Article by : Erik Gibbs Mar 19, 2024

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On Saturday, a revised Maryland bill aiming to legalize online casinos successfully passed through the state’s House of Delegates right before the imminent crossover deadline on Monday. Now, the bill advances to the Senate, a chamber where garnering support for online casino legislation has proven challenging in recent times.

Spearheaded by Delegate Vanessa Atterbeary, House Bill 1319 outlines provisions to issue approximately 30 online casino licenses within Maryland’s jurisdiction.

The bill further delineates that brick-and-mortar casinos across the state could secure anywhere between one to three mobile licenses each. Moreover, even off-track betting facilities and bingo halls stand eligible for licensing, with an additional competitive process to allocate these permits.

Under the proposed legislation, obtaining a license would entail a hefty fee of $1 million, valid for a duration of five years.

Notably, mobile casino applications would be subjected to a tax rate of 55% of their gross revenue, while live dealer games would face a comparatively lower tax rate of 20%.

Atterbeary’s proposed legislation seeks to prioritize licensing for businesses that fulfill specific social equity criteria, aiming to foster inclusivity and opportunity within the industry. To qualify as a social equity applicant, an individual must satisfy at least two specific criteria.

One, applicants must have resided in an economically disadvantaged area for a minimum of five out of the past 10 years. Second, applicants must have also received education in a public school located within an economically disadvantaged area for at least five years.

Then, applicants must have attended an in-state college where at least 40% of students are eligible for the Pell Grant, coupled with a personal net worth below a threshold yet to be determined.

During the competitive license application process, social equity applicants would be granted initial access, highlighting the bill’s commitment to leveling the playing field. Furthermore, the legislation incentivizes brick-and-mortar establishments to embrace social equity ownership.

A casino demonstrating 5% ownership by a social equity applicant becomes eligible for its inaugural license.

Similarly, if a casino exhibits 33% ownership by a social equity applicant, it becomes eligible for a second and third license, promoting diversity and representation within the industry.