Maryland lawmakers are considering a bill that would legalize online casino gambling, or iGaming, in the state. The bill has the support of some casino managers and international gambling organizations, who claim that iGaming would generate more revenue for the state and help combat the illegal market. However, casino employees and union leaders are opposed to the bill, fearing that iGaming would reduce jobs and revenue at the brick-and-mortar facilities. The bill would also require voter approval in a referendum in November.
iGaming could boost state revenue, supporters say
Supporters of iGaming argue that legalizing online casino games would allow the state to capture revenue from a multimillion-dollar illegal market. According to a report by The Innovation Group, a gaming industry consulting firm hired by Maryland, iGaming could eventually bring in more than $900 million annually, resulting in a nearly $700 million net gain for the overall gaming market.
They also say that a regulated market would allow operators to better protect those suffering from problem gambling or addiction, by implementing measures such as capping the amount someone can bet or suspending a problem gambler’s account.
Casino managers, company representatives and lobbyists, including from local brands like Horseshoe Baltimore and Riverboat on the Potomac, and international companies like MGM Resorts and Light & Wonder, told lawmakers on Monday that iGaming would not cannibalize jobs at and around the physical facilities, but rather create more customer traffic and employment opportunities.
“I would not be up here if I had thought there (would be) a job loss,” said Randall Conroy, general manager of Horseshoe Baltimore.
iGaming could harm casino workers and public health, opponents say
Opponents of iGaming, however, are skeptical of the claims made by the supporters. They fear that iGaming would reduce the demand for in-person betting, which attracts people to hotels, restaurants, retail stores and entertainment venues in and around casinos. They also worry that iGaming would hinder development at casinos, which lately has included the addition of Top Golf to the area adjoining Horseshoe Casino.
Casino union leaders, who represent employees at Horseshoe Casino, Ocean Downs Casino and MGM National Harbor, say that iGaming could result in more than 1,200 jobs lost in and around Maryland’s casinos, according to a report by the Sage Policy Group, a Baltimore-based economic consulting firm.
“The job losses, unstable revenue and, definitely, the damage to public health are not worth the risk,” said Donna Edwards, president of the Maryland State and D.C. AFL-CIO.
Organizations that research and combat problem gambling also warn that iGaming would increase the prevalence and severity of gambling addiction, by granting people access to casino games anywhere they have internet connection. They cite studies that show that online gamblers are more likely to gamble more frequently, spend more money and exhibit signs of problem gambling than land-based gamblers.
iGaming bill faces uncertain future in legislature and ballot
The bill that would legalize iGaming in Maryland, House Bill 940, is sponsored by House Ways and Means Committee Chair Vanessa Atterbeary, a Democrat from Howard County. The bill has 71 co-sponsors, including 68 Democrats and three Republicans, which should ensure its passage from the committee to the full chamber.
However, the bill faces a tougher challenge in the Senate, where Senate President Bill Ferguson, a Democrat from Baltimore City, has expressed reservations about expanding gambling in the state. Ferguson has said that he wants to see more evidence that iGaming would benefit the state and not harm the existing casino industry or the public health.
Even if the bill passes both chambers, it would still need voter approval in a referendum in November, as required by the state constitution. Maryland voters have historically supported gambling expansion, as they approved the legalization of casinos in 2008 and sports betting in 2020. However, iGaming may be a different proposition, as it involves a more radical change in the way people can gamble in the state.
