Maryland Delegate Vanessa Atterbeary is taking another swing at legalizing online casinos in the Old Line State. However, even if her bill were to pass this year, it would require voter approval in a 2026 referendum to take effect, meaning the earliest Marylanders could see legal online casinos launch would be in 2027.
Atterbeary, who chairs the House’s Ways and Means Committee, pre-filed House Bill 17 last year in late October. The bill, which would permit the Maryland State Lottery and Gambling Control Commission (MSLGCC) to regulate online casino gambling, will be officially filed when the 2025 legislative session opens on Jan. 8.
The bill resembles another Atterbeary championed last year, which passed the House but failed to reach the Senate, mainly due to fears of retail cannibalization.
Fees and tax revenues to supplement state programs
As it stands, HB 17 presents a regulatory framework for licensing qualified applicants, explicitly focusing on opportunities for women and minority-owned businesses.
The latest version of Atterbeary’s bill would permit existing sports betting and video lottery operators to apply for online casino licensing. It also allows the MSLGCC to issue five licenses to additional applicants who meet the criteria for an internet gaming license.
Initially, operators will pay $1 million for a five-year license, with renewals calculated at 1% of operators’ average annual revenue over the previous three years. An unspecified amount of the revenue obtained from license fees will reimburse licensing-related costs to the State Lottery and Gaming Control Agency. Another 1% will go to the State Problem Gambling Fund, with the remainder boosting the Blueprint for Maryland’s Future Fund.
Over the market’s first five post-regulation years, operators can deduct 20% to 35% of their promotional spend. However, the exact amount will depend on gross gaming revenue.
The bill further stipulates licensees will retain 80% of live dealer proceeds and 45% of the revenue accrued from all other forms of online gaming. That puts Maryland’s taxation rate at 20% of live dealer revenues and 55% of all other online casino offerings.
The state will use that money to establish a Video Lottery Facility Employee Displacement Fund and support jurisdictions with video lottery facilities. Some of those funds will also support Maryland’s racetracks and small, minority, and women-owned businesses.
Additionally, 1% of revenues will fund:
- The State Lottery and Gaming Control Agency to cover costs related to background checks and other “regulatory activities”
- The Problem Gambling Fund
- County governing bodies
Voters likely to have their say in 2026 referendum
As proposed, the bill would allow Maryland to enter into multi-state internet gaming agreements like those typically used for online poker.
However, unlike Virginia’s recent online casino bill, Maryland will prohibit players from making credit card deposits.
The bill states that licensees must share data annually with Morgan State and Bowie State universities. It also requires the Maryland Center of Excellence on Problem Gambling to make a yearly report on the state of problem gambling. The report must include data on the effectiveness of regulatory controls to protect “vulnerable and problem gamblers.”
The MSLGCC must also report annually on the operation of internet gambling and its impact on existing state businesses. The commission must also study the effects of unauthorized gaming content reminiscent of online casino gaming. By the end of 2028, the commission must provide a report and recommendations to the Governor and General Assembly. The bill explicitly mentions online sweepstakes and “platforms that use microtransactions” as study targets.
Notably, this bill’s first version requires the state to hold a gambling expansion referendum with state voters in November 2026. So, should the bill pass the House and Senate this year, online casinos wouldn’t launch until 30 days after an affirmative vote.
Should residents vote against the referendum question, the bill would automatically become “null and void.”
However, Sen. Ron Watson told PlayUSA that there may be an argument that online slots and casino games are merely different methods of offering games already played in the state.
He also said he believes the state’s financial needs will play an essential role in whether or not Maryland legalizes online casinos this year.
As we discuss how to close the gap, we wanted to make sure they had an option ready to go that already has been vetted through the House.
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