Maryland's bid for online casino legalization falters amid lack of Senate appetite

Maryland's hopes for legalizing and regulating online casinos in 2024 have ended as efforts to advance the bill through the Senate faltered. Despite gaining traction in the House and progressing to the Senate in the previous month, the bill encountered staunch opposition in the upper chamber amid a lack of interest among senators.

The resistance against the legislation was notable throughout its journey, with opponents vehemently voicing their concerns. A central point of contention revolved around the potential impact of online casinos on traditional brick-and-mortar establishments. Various research studies have delved into this issue, with findings ranging from predictions of significant cannibalization to more conservative estimates.

The Innovation Group's research, indicating a potential 8-10% decline in retail revenues, fueled the opposition's arguments. This stance was echoed not only by anti-gambling groups but also by local retail organizations and labor unions, including the AFL-CIO and UNITE HERE, which actively lobbied against the bill.

Despite the resistance, House Delegate Vanessa E Atterbeary managed to steer House Bill 1319 through the lower chamber, securing a decisive 92-43 vote in favor of the legislation in March. However, there was little appetite for the measure in the Senate.

The amended version of the bill proposed issuing up to 30 online casino licenses and included a late amendment prohibiting credit card deposits. However, as any expansion would necessitate a constitutional amendment, Maryland voters would have had the final say via a referendum, akin to the process for sports betting legalization in 2020.

The bill's journey came to an abrupt halt upon reaching the Senate, mirroring the fate of Sen. Ron Watson's earlier iGaming bill during the session. The absence of tax revenue from online casino expansion in the state budget at the beginning of the month signaled the bill's likely demise. 

The Budget and Taxation Committee, which convened multiple times on Monday, notably omitted HB 1339 from its agenda, sealing the fate of Maryland's bid for online casino legalization in 2024.