The Maryland online gambling legislation made its initial appearance in the Senate, but it faces opposition.
The legislation, which passed the House of Representatives on Tuesday, March 26, has several unresolved matters.
The bill, which passed the House of Representatives on March 14 by a vote of 92-43, has encountered resistance in the Senate due to concerns about the impact on traditional casinos and a rise in gambling addiction.
HB 1319 would permit online casinos statewide, which has a well-established physical casino market and launched digital sports betting in November 2022.
If online wagering is any indication, online casinos could be a massive success. Despite being the 14th most populous state, Maryland has been among the top states for sports betting volume, setting records in its first five days.
However, time is running out for this session. The General Assembly is scheduled to conclude on April 8, but the legislation, which passed the House on March 14 and entered the Senate two days later, has been stalled in the Budget and Taxation Committee.
This delay could indicate that the committee lacks sufficient votes to advance Maryland online casinos, and lawmakers are still negotiating.
A Maryland representative, Vanessa Atterbury, conveyed to the legislative group, “Internet wagering is already present in Maryland; it’s simply against the law. Individuals are engaging in online gambling via their mobile devices or personal computers, making arrangements with businesses in Curacao or other distant locations, not within Maryland. We have a duty to assume control of this market and establish regulations.”
HB 1319 was one of numerous proposals presented to the committee on Tuesday, with no public spoken testimony. Supporters were given the opportunity to explain their proposals, and committee members posed inquiries. Committee Head Guy Guzzone did not specify when or if a vote would be arranged.
Atterbury provided a detailed explanation of the bill, including the allocation of funds for responsible and problematic gambling concerns, and the assertion that worries about market encroachment were overstated.
Atterbury cited several studies indicating that 1% of the population exhibits or is at risk of developing a gambling problem. According to the National Council on Problem Gambling, this figure aligns with those who will develop a “serious” gambling issue, but the organization anticipates an additional 2%-3% of Americans are at risk.
The bill designates 1% of tax revenue to finance problem gambling and responsible gambling initiatives.
Atterbury addressed concerns regarding market encroachment, highlighting that the bill also includes a $10 million fund for existing casino employees.
Advocates for internet gambling contend that there’s a harmonious relationship between online and physical offerings, and that the loss of business is insignificant. Critics counter that this might hold true for companies providing both avenues, but for those solely offering physical services, they believe the rate of substitution could be more substantial.
Senator Joanne Benson referenced a fresh study from the Data Analytics and Sports Betting Research Department at Morgan State University, which she labeled “devastating for minorities” due to potential job reductions.
Authorizing online casinos in 2024 is proving to be a challenging endeavor for numerous reasons. Lawmakers in states like Illinois and New York have already relinquished the initiative.
Maine’s attempt faltered in late February as legislators remained divided on the matter during a working session.
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