Revised Online Casino Bill in Maryland Could Allow Up to 25 Operators

Article by : Erik Gibbs Mar 14, 2024

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In a bid to enhance inclusivity and diversity within Maryland’s online casino licensing framework, a Maryland House subcommittee has introduced significant changes, albeit simultaneously complicating the process.

HB1319, Maryland’s online casino legislation, is sponsored by Representative Vanessa Atterbeary. The legislation underwent revisions on Tuesday in the House Racing and Gaming Subcommittee to the Ways and Means Committee, which Atterbeary oversees.

The revised bill expands the potential number of online casino licenses from 12 to 25, accompanied by stringent conditions aimed at fostering diversity, equity and inclusivity among licensees.

Atterbeary’s amendment further prohibits the use of credit cards to fund Maryland online casino accounts and incorporates additional measures to address problem gambling concerns.

Atterbeary has outlined the specifics of her amendment, but the finalized version is not yet accessible on the Maryland legislative website. However, insights into the amendment details from an industry insider possessing a copy of the proposed changes circulated online.

Initially, Atterbeary’s bill proposed 12 untethered online casino licenses, diverging from SB603, which allocates two skins to each of Maryland’s six casinos. But now, Atterbeary’s amendment introduces a multifaceted system consisting of three distinct license categories.

First, the casino licenses enable Maryland’s six casinos to secure the initial license by dedicating 5% of iCasino revenue to a social equity applicant partner.

Obtaining a second license requires casinos to share 33% of iCasino revenue with a social equity applicant partner, thereby qualifying for a bonus third license if collaborating with a 5% social equity partner.

Second, Class B licenses are designated for off-track betting parlors, eligible bingo halls and Urban One, a black-owned media company. Lastly, the remaining 18 licenses undergo competitive bidding, with social equity applicants receiving priority in the initial bidding round.

Social equity applicants are defined as individuals or groups that have resided in economically disadvantaged areas for at least five of the past 10 years and meet additional criteria such as educational background or net worth limitations.

Furthermore, Atterbeary’s amendment to regulate Maryland’s online casino operations includes banning credit card use to fund accounts, mandating deposit limits, and restricting revenue from certain countries.

It also implements promo deductions guidelines and initiates a study on online casino impacts. However, the tax rates remain unchanged from the Senate bill, taxing online slots and table games at 55% and live dealer games at 20%.

Atterbeary, as chair of the House Ways and Means Committee, has significant influence over the progress of HB1319. There’s anticipation that the bill could move out of committee as early as Wednesday.

However, the legislation faces obstacles, including opposition from labor unions and some casinos. With the crossover deadline approaching on March 18, lawmakers have limited time to advance the bill before the legislative session ends on April 8.

If passed, the legislation would let Maryland voters decide on legalizing online casinos in November. But still, there’s uncertainty about the timeline for market launch due to a lack of specifics on licensing.

Previous attempts to enhance diversity and inclusion in online sports betting, spearheaded by Senator Ron Watson of the Maryland Legislative Black Caucus, faced delays and ultimately fell short of expectations.