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Maryland Lawmakers Consider Internet Gaming Referendum

Written by Jennifer Newell
Last updated on
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Maryland would like a word about online gambling. Not too many words, mind you, but a few of the state’s lawmakers would like to talk about it.

They are interested enough to put forth a bill in 2023 to legalize internet gaming for people in the state of Maryland. Perhaps they’ve been watching their neighbors like New Jersey, Pennsylvania, and Connecticut rake in millions – even billions – in igaming revenue. Maryland could use some of that extra revenue.

Considering iGaming

Maryland State Senators Nancy King and Ronald Watson – two Democrats – created SB267. They introduced the bill on January 25. The goal of the legislation is contained in the synopsis:

“Authorizing the State Lottery and Gaming Control Commission to issue certain licenses to certain video lottery operators to conduct or participate in certain internet gaming operations in the state, authorizing the governor, on recommendation of the Commission, to enter into certain multijurisdictional internet gaming agreements with certain other governments, subject to certain limitations, and submitting the Act to a referendum of the qualified voters of the state.”

A certain bill made its debut in the Budget and Taxation Committee. And five days later, they set it for discussion at a hearing on February 15.

Much Needed Funds

Let’s face it. Every state in America could use some extra funds. Maryland is no different.

What is different is that Maryland has a longer path to new gambling laws than a lot of other states. Something like igaming must obtain the approval of the voters of the state to change its constitution.

That is what happened with sports betting. That issue made it to the voters in 2020, and it did pass by a two-to-one margin. But that appeared to be enough gambling for the time being, as lawmakers didn’t want to overwhelm voters with another gambling-related bill as early as 2022. However, by 2024, King and Watson believe it might be palatable.

They also feel that voters might be interested in putting gambling revenues to good uses, rather than raising taxes. The tax on igaming revenue would be 15%, which would go to the Lottery Fund. They would then divide the monies among funds for stadium facilities, the veterans’ trust, Baltimore City public school construction, and the state’s general fund.

What’s Next?

The February 15 committee hearing will be very telling. If they can move the bill forward, they will get closer to a 2024 ballot measure in the general election that asks: “Do you favor the expansion of commercial gaming in the State of Maryland to authorize internet gaming for the primary purpose of raising revenue for education?”

Lawmakers merely need to approve the issue to go to the voters.

 

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