Another Maryland online casino hearing brought more of the same this week.
The House Ways and Means Committee discussed Del. Vanessa Atterbeary’s HB 17 Monday for more than four hours. Atterbeary, who chairs the committee, guided an online casino bill through the House last year.
“At this point, we’re not being left behind,” she said during the hearing. “We are behind, quite frankly.”
Still, the legislation was met with plenty of opposition, similar to how Sen. Ron Watson’s SB 340 was received last month in a Senate Budget and Taxation Committee hearing.
Online casino opposition grows louder
Opponents are mainly parroting brick-and-mortar cannibalization concerns. The Cordish Companies is leading the charge, much like it did last year, all but ending the Senate push.
During the hearing, Atterbeary quipped that the legislation should exclude The Cordish Companies’ Maryland Live! from receiving a license.
Last year, Innovation Group prepared a report for the Maryland Lottery and Gaming Control Commission on online casino expansion. It included a 10% decline in brick-and-mortar revenue, which representation said increased to 16% this year.
Penn Entertainment is also opposed to the proposal. While the proposal includes licenses for smaller gambling outlets, Penn desires exclusivity for the six major casinos in the state.
Focus on social, sweepstakes casinos too
Atterbeary also pointed to social sweepstakes operators, which Maryland lawmakers are also looking to address this session.
The state has sent 11 cease-and-desist letters to unregulated companies.
Maryland online casino basics
The legislation would create licenses for the state’s casinos and sports betting licensees. Smaller operators in the state, like Long Shots, have testified at both hearings in favor of the legislation giving them licenses.
The legislation would tax live dealer games at 20% and other games at 55%. Proponents have pointed to in-state live dealer studios as a way to prevent job loss.
The legislation would prohibit credit card use for online casino account funding.
Cannibalization counterargument
During the Senate hearing last month, Watson said he is willing to work with unions to guarantee jobs are not lost. Several unions were vocal during the unsuccessful Senate attempt last year.
“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.
During Monday’s House hearing, iDEA Growth representative John Pappas reiterated the proposal’s job growth potential with the live-dealer studio.
