Maryland Online Casino Discussion Picks Up In Similar Place


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Online casino

The Maryland online casino discussion heated back up this week but kept to a familiar tune. 

Sen. Ron Watson presented his online casino bill, SB 340, to the Senate Budget and Taxation Committee on Wednesday. The legislation, a companion of Del. Vanessa Atterbeary’s HB 17, received more than six hours of discussion, including the reemergence of cannibalization concerns, which all but doomed the bill last year

Atterbeary guided her bill through the House last year, but it did not gain steam in the Senate. She reintroduced the bill this year, with Watson picking up his support again

Even if the bill passes with the significant opposition it faces, it needs a public referendum and would not be on the ballot until 2026

Maryland online casino discussion

Last year, opposition from Cordish Companies and local labor unions stymied online casino expansion efforts. This year, Penn Entertainment also added to the opposition, unhappy with the legislative language but not necessarily the gambling expansion.

Penn believes the language can be written more friendly to brick-and-mortar casinos in the state. In his statements, Watson said he is willing to work with the companies to guarantee the unions will not lose jobs.

“Folks are making money. Any casino that implements iGaming and gets rid of employees is doing it out of greed, not because they don’t have the money to do it,” Watson said.

The opposition cited casino jobs in Pennsylvania dropping 24% after the state legalized online casinos but did not note that this was also due to the effects of COVID-19. 

Cordish remains most vocal 

Cordish Companies EVP and General Counsel Mark Stewart said the company has opposed online casino expansion in every state where it operates, including a recent discussion in Louisiana

Stewart cited a “growing mountain of evidence” against online casinos and said that tax revenue growth is a mirage. He also said it does not eliminate the illegal market.

Churchill Downs-owned Ocean Downs Casino General Manager Bobby Jones said the expansion does have a “significant negative impact” on smaller casinos. That includes a 15% revenue decrease at Pennsylvania’s Presque Isle Casino

Proponents trot out same arguments 

Watson used industry-provided data to contend that the expansion does not cannibalize land-based revenue. The memo sent to committee members showed land-based casino revenue growth in Pennsylvania following legalization in 2019.

He also touted job creation through live dealer studios in the state. 

Industry stakeholders also discussed the potential tax revenue for the state and the benefits of a regulated market.

Online casino framework

The online casino proposal would allow casino operators, sports betting operators and VLT operators to offer online casino platforms. 

Maryland would tax live dealer games at 20%, with other games clocking in at 55%.

The legislation also contains language to help minority- and women-owned businesses, similar to the sports betting law. During the meeting, small sportsbook and bingo hall companies that can hold sportsbook licenses asked for the ability to hold an online casino license. 

Photo by Shutterstock / Glynnis Jones