SB 267, which put to a referendum the issuance of internet gaming licenses to video lottery operators in Maryland, fell short in the 2023 legislative session. Budget language, however, requires the Maryland Lottery to study online casino games and file a report with the General Assembly. State to study online casino gaming, issue could be for voters in 2024 .
Online casinos allow gamblers to play and wager on casino games over the internet. While many states allow land-based casinos and sports betting, only six states allow online casinos: Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia.
The study, due Nov. 15, aims to measure the potential impact on Marylanders if the state legalizes online casino games, including:
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the approximate size of the iGaming market in Maryland
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the potential economic impact on the state’s physical casino locations
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the potential impact on the state’s lottery system
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results from other states with legal iGaming
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The potential impact of iGaming on problem gambling
The current landscape of Maryland
Maryland law allows for a variety of legal gambling options. Still, the General Assembly can only authorize additional forms or spell extensions if they are approved by referendum by a majority of voters in a general election.
Therefore, in order for the issue to be presented to voters in the 2024 election, the General Assembly must pass legislation during the 2024 session. And even if voters pass a referendum allowing online casino gaming in the 2024 election, online casinos would not be operational in Maryland until 2025.
Maryland has authorized video lottery operation licenses in Allegany, Anne Arundel, Cecil, Prince George’s, Worcester, and Baltimore City counties, with a maximum number of 16,500 dedicated video lottery terminals (VLTs) in the state. Subject to approval by the State Lottery and Gaming Control Agency, licensees may also have table games.
State to study online casino gaming, issue could be for voters in 2024
Gross VLT proceeds are generally distributed from the proceeds of VLTs in each facility to a small, minority and female business investment account, the State Lottery for administrative costs, local impact grants, the horse racing industry, licensees and the Education Trust Fund (ETF) .
Licensees receive 80 percent of the table game revenue from the balance, 15 percent is distributed to the ETF, and 5 percent is distributed to local jurisdictions where a video lottery terminal is located. County governments can use local impact grants for infrastructure improvements, facilities, public safety, sanitation, economic and community development, and other public services and improvements.
Last month, Maryland’s six casinos generated $169.4 million in gaming revenue, contributing $70.8 million to the state.
Additionally, in 2020, Maryland voters passed a constitutional amendment to expand commercial gambling by allowing sports and event betting to generate revenue for education.
Maryland’s ten retail and ten mobile sportsbooks combined generated $4,650,711 in contributions to the state in May 2023, the second-best one-month total to date. Each sportsbook contributes 15 percent of its taxable profits to the Blueprint for Maryland’s Future Fund, which supports public education programs.
State to study online casino gaming, issue could be for voters in 2024
What can online casino games mean for provincial governments?
While the Comptroller’s Office estimates that online casino gaming could generate nearly $100 million annually for the Education Trust Fund, MACo expects online gaming to impact personal table game and VLT revenues. As such, in addition to advocating for a fair share of the new gaming revenue, counties will seek to protect existing revenue streams that local governments have relied on for several years and support important services and infrastructure for our communities.
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