Second online casino bill filed in Maryland senate
Maryland lawmakers are continuing their efforts to bring iGaming to the Old Line State at the start of a new legislative session.
Sen. Ron Watson has introduced Senate Bill 340 as a piece of legislation that proposes iGaming with licensing and regulation by the Maryland Lottery and Gaming Control Commission. The measure also provides a basic regulatory framework for licensing online casinos and the allocation of proceeds from the potential additional revenue stream.
SB 340 adds to previous efforts by Watson to bring iGaming to Maryland. In 2024, he introduced Senate Bill 603 as a measure that authorized online casinos via a voter referendum but the bill would dissolve in a Senate committee after its first reading. Watson also filed a similar online casino measure in 2023 that suffered the same fate.
The Senator’s latest effort to bring iGaming to Maryland also includes a voter referendum.
Licensing requirements in Maryland
Under SB 340, iGaming licenses can be awarded to video lottery operators, a holder of a sports betting facility license or a gambling company that has maintained a headquarters in Maryland for at least 10 years. VLT operators may request an additional iGaming license if they agree to operate in partnership with social equity applicants that have a joint venture with the operator. The social equity applicant must own at least 33% of the venture.
Watson’s bill calls for iGaming operators to pay an initial $1 million license fee for a five-year term. If an operator meets statutory and regulatory requirements during that period, they can renew their licenses for an additional five years. Under SB 340, the renewal fee is equal to 1% of the operator’s average annual proceeds for the preceding three years.
Potential contributions from iGaming
Operators who are granted a license are required to spend at least $5 million during the initial term of their license to build and operate a live dealer studio or a TV and film studio.
The measure requires the Video Lottery Facility Employee Displacement Fund to receive up to $10 million from iGaming proceeds during the first 12 months of regulated wagering. Jurisdictions with VLT facilities will also receive a percentage of proceeds.
The Video Lottery Facility Employee Displacement Fund is designed to support former employees at VLT facilities who have lost their jobs due to the implementation of iGaming.
SB 340 requires a portion of proceeds to go to Blueprint for Maryland’s Future.
It also mandates contributions to the Small, Minority, and Women-owned Businesses Account, the Racetrack Facility Renewal Account and the Problem Gambling Fund.
SB 340 underwent its first reading in the Senate Budget and Taxation Committee last week and is set for a hearing in the Senate on Jan. 29.
Maryland Delegate also wants iGaming
Earlier this month, Maryland State Delegate Vanessa Atterbeary submitted a request to introduce House Bill 17 as a measure that aims to authorize and implement iGaming.
The bill, introduced and read for the first time on Jan. 8, also requires a change to the state’s constitution requiring a referendum. HB 17 proposes a $1 million licensing fee with licenses having a five-year term. Under the bill, licenses are also available to VLT operators, holders of a sports wagering facility license and businesses that have maintained a headquarters in the state for at least 10 years. HB 17 also makes an additional license available to VLT operators who secure a partnership with a social equity applicant.
The applicant must also own at least 33% of the joint venture.
HB 17 also mirrors Watson’s bill by establishing the Video Lottery Facility Employee Displacement Fund, which is required to receive up to $10 million in its first 12 months.
Last year, Atterbeary introduced an iGaming measure, House Bill 1319, that passed in the House by a 92-43 vote following a series of amendments but would later die in the Senate due to a lack of interest and cannibalization concerns over revenue at retail casinos.
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