On a pivotal Saturday, just two days shy of the critical crossover deadline, the House of Representatives cast a decisive vote of 92-43 in favor of a bill poised to put the legalization of iCasino on the November ballot for public decision.
This move hands the Senate a tight timeframe of less than a month to act before the General Assembly adjourns on April 8.
In a recent development, House leadership unveiled a budget plan on March 15, boasting a $1.3 billion framework that incorporates anticipated tax revenues from legalized internet gambling.
This financial strategy is earmarked to support future education and transportation initiatives, as reported by the Associated Press.
Maryland has captured the attention of the online casino industry, with many considering it the frontrunner for passing legislation on internet gambling this year.
Maine remains the only other contender still deliberating on the legalization of online casinos. Initially, there was optimism that states like Illinois and New York would join the movement towards legalization, but the legislative process has proven challenging due to various obstacles, including a general misunderstanding of what “online gaming” entails and regional concerns over potential disadvantages.
As the bill progressed through the House, it underwent significant alterations, some of which have been met with industry resistance.
Notably, Delegate Vanessa Atterbeary introduced an amendment by the bill’s third reading on March 16, increasing the number of licenses available, prohibiting credit card use for funding gambling accounts, and introducing measures for diversity, equity, and inclusion.
The proposed legislation outlines a minimum tax rate of 55% on electronic games, with live-dealer games facing a 20% tax.
Prospective operators face a $1 million initial fee for a five-year license, with renewal fees pegged at 1% of the average annual profit from the preceding three years.
The tax revenue generated is designated for the Blueprint for Maryland’s Future, benefitting education, transportation, counties hosting physical casinos, horse racetracks, and businesses owned by minorities, women, and small enterprises.
Additionally, 1% of the collected taxes would support problem and responsible gambling programs.
The bill introduces three tiers of licensing, with a significant emphasis on “social equity partners” defined by specific socio-economic criteria.
Existing casinos, OTBs, bingo halls, and the Black-owned media company Urban One are among those eligible for licenses, alongside up to 18 stand-alone digital gambling licenses available through competitive bidding, prioritizing social equity applicants.
Maryland’s approach to legalizing online sports betting in 2020 featured stringent minority participation guidelines, which prolonged the regulatory process compared to other jurisdictions.
This bill’s passage could signify a major shift in the state’s online gambling landscape, with provisions for live dealers and unionization among the discussed amendments.
Despite the bill’s progress, opposition remains from certain casino-worker labor unions and Republican lawmakers, citing concerns over job losses.