The Maryland General Assembly began its 2025 session on Wednesday, and once again state lawmakers stand ready to push forward with legislation to legalize online casino gaming. However, even if the Maryland online casinos bill passes this year, residents would not be able to play slots or table games on their mobile devices until sometime in 2027.
State Del. Vanessa Atterbeary, D-Fulton, prefiled House Bill 17 for this year’s session last October.
According to the legislature’s website, the Maryland iGaming bill had its first reading in the House Ways and Means Committee – which the sponsoring delegate chairs – on Jan. 8, the opening day of the session.
Many aspects of this year’s bill are similar to one that passed the House last year. But the Senate never took it up, so voters never got a chance to consider the question on the November ballot.
The reason why there may be an interest in this session is that Maryland lawmakers are staring down a $3 billion budget deficit. While lawmakers knew there was a deficit looming last year, some legislative leaders decided it was not as pressing of an issue last year. There also was substantial opposition to the proposal from the union representing casino workers as well as smaller casinos operated by Churchill Downs Incorporated and Baltimore-based Cordish Cos.
What’s In The MD Online Casinos Bill
As with last year’s bill, HB 17 ties Maryland iGaming licenses to the state’s brick-and-mortar casinos and approved Maryland sports wagering facility operators, such as the Washington Commanders. Casino operators may qualify for an additional license if they have partners who meet specific “social equity” qualifications.
Approved online casinos would be taxed at 20% of their revenue from live-dealer table games and 55% of the revenue tied to online slots. Those casinos, though, would be allowed to deduct a portion of their promotional spending from their revenues on a sliding scale for the first five years. For example, an iGaming operator that has less than $4 million in annual revenue can deduct up to 35% of the free play they allow. Those making $12 million or more can deduct 20%.
The state would use the tax money to cover the costs of regulatory and administrative purposes. The tax money would also cover a displaced worker fund for up to $10 million and funding for horse racing and small, minority-owned and women-owned businesses. Maryland counties would also share 1% to help them cover their educational costs.
After that, 1% would go to the state’s problem gambling fund, with the remainder going to the Blueprint for Maryland’s Future Fund, which provides dollars for education reforms and initiatives across the state.
MD Referendum Deemed Necessary
In recent weeks, there has been some discussion about whether Maryland would need a referendum to pass iGaming. However, state Sen. Ron Watson, D-Bowie, told BetMaryland.com that the state attorney general’s office believes one is necessary.
That means voters would not get to decide the issue until the 2026 general election, even if lawmakers approve it this year.
No hearings have been held yet on the legislation in this session.
What’s Next for iGaming Proposal?
Some lawmakers might be more willing to consider iGaming legislation in this session, but the bill likely still faces opposition from casino workers and owners of smaller casinos. Also, some pushback could come from local businesses who fear they will lose money and customers due to the perception that iGaming would keep some casino patrons at home.
While proponents have stated there is no correlation between legalized iGaming and declines in brick-and-mortar casino revenue, it would not be surprising to see bill supporters provide additional support for workers who might be displaced and perhaps to casinos that may lose revenue.
Maryland Gov. Wes Moore is expected to unveil his budget proposal soon. It remains to be seen whether his office would be willing to consider supporting iGaming to cover the budget gap and ensure funding for the state’s education initiatives.
Regardless, the bill that’s before lawmakers in Annapolis now will likely go through more revisions. BetMaryland.com will continue to monitor the bill’s progress and provide updates throughout the session, and we also have real money Maryland sportsbook promos you can check out today.
