Maryland legislators are once again considering the legalization of online casino gaming, a move that could generate substantial tax revenue but also raise concerns about potential economic shifts. The discussion has sparked a divided response from industry stakeholders, with arguments focused on revenue generation, job losses, and the impact on existing brick-and-mortar casinos.
The proposed legislation, known as SB 340, aims to bring legal online casino gaming to Maryland. If approved, the measure would be placed on the 2026 ballot for voter consideration. The bill, sponsored by Sen. Ron Watson and Del. Vanessa Atterbeary, outlines a tax structure where live dealer games would be taxed at 20%, while other online casino games would face a 55% tax.
According to nonpartisan analysts cited by The Baltimore Banner, Maryland could expect to generate approximately $225 million in tax revenue within the first full year of implementation. Much of this revenue would be allocated to the state’s Blueprint for Maryland’s Future Fund, which supports educational initiatives. However, some funds would also be directed toward responsible gambling programs, horse racing subsidies, and local government budgets. Additionally, a fund would be established to assist casino workers affected by the industry shift.
Industry Divide on Cannibalization Concerns
The primary point of contention in the debate centers around whether online gaming would siphon business from existing land-based casinos. Some casino operators warn that legalization could lead to significant revenue losses, particularly for smaller, regional casinos. During a recent Senate Budget and Taxation Committee hearing, representatives from the Cordish Companies, which owns Live! Casino in Maryland expressed strong opposition to the proposal. Mark Stewart, speaking on behalf of Cordish, highlighted that while the company operates online gaming in Pennsylvania, it believes the move would be detrimental to Maryland’s gaming industry and its employees.
Stewart pointed out that Cordish invested heavily in brick-and-mortar operations, employing thousands of workers, whereas its online gaming venture in Pennsylvania required only one new hire. Similar concerns were echoed by Bobbi Jones of Ocean Downs Casino, who noted that Pennsylvania’s Presque Isle Downs suffered a 15% revenue decline and laid off 45% of its workforce after the state approved online casinos.
Despite these concerns, proponents argue that online gambling would not necessarily harm existing casinos. John Pappas of iDEA Growth pointed to Pennsylvania’s revenue figures, which showed simultaneous growth in both online and retail casino sectors. He emphasized that regulated online casinos could help eliminate the unlicensed, illegal gambling market, which he estimated to be worth $200 million in Maryland.
Minority Business Participation and Regulatory Concerns
Another aspect of the discussion focused on ensuring minority and small business participation in the industry. The bill includes provisions similar to Maryland’s sports betting framework, offering opportunities for minority-owned businesses to enter the market. However, concerns were raised regarding high licensing fees and limited access for smaller operators. Antonio Jones, a partner in Riverboat on the Potomac, advocated for reducing fees and expanding financing options to increase participation from underrepresented business owners.
Opponents also highlighted broader concerns beyond revenue and market competition. Some lawmakers and industry representatives pointed to increased gambling addiction risks, job displacement, and economic challenges for local businesses reliant on casino-driven tourism. Kristen Pironis of Visit Annapolis argued that fewer in-person visitors to casinos would translate to reduced spending at hotels, restaurants, and retail establishments.
While no vote was held during the hearing, the contentious debate signals a tough road ahead for the bill. Industry insiders suggest that the measure may struggle to gain traction, as opposition from established casino operators, local business leaders, and anti-gambling advocates remains strong. However, with a growing push for new revenue sources, the discussion around online gaming in Maryland is far from over.