Regulated casino one step closer to reality
Regulated online casino play in Maryland moved one step closer to becoming a reality, with a bill proposing its legalisation passing the house. The bill will now be passed forward to the Senate, which will have a month to make a decision.
A Step in the Right Direction
While there are still several stages left until Maryland legalises online casino gambling, this was seen as a major step forward.
The bill, House Bill 1319, was passed by The Maryland House of Delegates, meaning it can move onto the Senate. The vote was held just two days before the crossover deadline on March 18. A crossover deadline dictates the last day a house bill can progress from the lower legislative house to the upper house in each state.
The aim of HB 1319 is to compel the Maryland State Lottery and the Maryland Gaming Control Commission to launch regulated online casinos in the state. These regulatory bodies would issue licenses to qualified casino operators. If the bill is successful in the Senate, the next stage will be to hold a referendum to decide whether it should be introduced. The timeframe for this is not certain.
Strong Support
The bill passed the vote 92 to 43, and there is only one month remaining for the bill to pass through the Senate. A day before the vote, March 15, the House of Delegates revealed a $1.3 billion budget plan for the state that requires tax revenue from regulated online casinos. The budget accounts for future infrastructure costs related to education and transportation. One percent of the tax collected will go towards services for problem gamblers and promoting responsible gambling.
The bill was introduced by Democratic Delegate Vanessa Atterbeary, who promised a highly regulated industry if the bill is introduced. She said that there is around $200 million worth of illegal gambling already occurring in Maryland every year. Atterberay argues that these players are at serious risk, and would be safer playing in a regulated marker.
The bill also advocates for a tax rate of 55% which would be one of the highest tax rates for online casino revenue across the country. Live-dealer games would be taxed at a lower rate of 20%. The initial license fee for operators set by the bill is $1 million for a five-year license. Licenses are only available to casinos that are at least 5% part-owned by a social equity partner.
There is also wider support from the industry for Maryland to pass this bill. Many believe it has an excellent chance of becoming a regulated market in 2024, with Maine being the only other state that could pass a similar bill.
