The Maryland Senate dashed any hope that online casino gambling would be coming to its residents and visitors when the potential revenue stream was not included in its budget discussions.
No Dice
Online casino legislation in the form of HB 1319, sponsored by Delegate Vanessa Atterbeary, cruised through the House by a vote of 92-43 and advanced to the Senate Budget and Taxation Committee. But the reception it received was chilly, to say the least, as evidenced by the question-and-answer period that lasted only 18 minutes.
Ultimately, the Senate did not include online casino gaming in its budget proposal, which means the only possible way iGaming will stay afloat this year is if it is passed through for a referendum on November’s ballot. Yet, even that remote possibility was deemed “unlikely” by Senator Ron Watson.
Senate Standoff
Watson, a proponent of online casino gaming, indicated this would not be the year for the iGaming initiative. “My general sense is the Senate passed a balanced budget without any tax increase and is very reluctant to move forward with iGaming because of concerns about problem gaming and cannibalization,” said Watson.
Senate President Bill Ferguson made no bones about his distaste for online gaming in the Old Line State: “We’ve been consistent for months. It is what it is. It’s a hard no on iGaming and a hard no on combined reporting. Those are not things we’re going to be taking up this year. Appreciate the perspective of the House, again we share similar values and where we want to go in the long run, in terms of what we want to invest in. How we get there is where the difference is.”
Better Luck Next Time
There is plenty of money to be made in the iGaming business and Delegate Atterbeary wanted to use what would have been a new revenue stream to support the Blueprint for Maryland’s Future, an educational fund that has enough money to continue until 2027.
“I put this in because I’m very passionate about our children, which I know all of you are. And, as all of you know, we are running out of Blueprint funds come 2028. This is the House’s way and the way Ways and Means came up with to generate funds specifically for the Blueprint. I am passionate about not walking back on that commitment, particularly to our Pre-K three and four-year-olds.”
Atterbeary also pointed out that illegal online casino gambling is already happening but without the safeguards the state can impose nor the tax benefits it could reap.
“I think it is incumbent on us to capture that market, regulate it, and get rid of the illegal market,” Atterbeary said. “By doing that, you can put safeguards in it. For folks that are worried about problem gaming, there are no safeguards for iGaming happening right now. Absolutely no safeguards.”
Battle of Narratives
One of the issues Atterbeary and her colleagues who support online casino gaming will have to contend with is punching through the narrative that iGaming will lead to the cannibalization of the retail casinos dotting the Maryland landscape.
Despite several studies concluding iGaming either has no deleterious effects on brick-and-mortar locations or actually helps their bottom lines, the one study from Morgan State University’s Center for Data Analytics and Sports Gaming Research concluded just the opposite and was the one Atterbeary’s opponents relied on to counter her efforts.
“We had six reports. Only one said that there would be cannibalization. Due to concerns about job loss and possible cannibalization, off the top, the House decided to create a $10 million fund. For anybody who works at a brick and mortar, if you are displaced by your job, you can go and get your salary on top of getting unemployment from the state,” countered Atterbeary.
Senator Watson summed up iGaming’s latest losing battle by saying, “The House is being proactive in saying we need to take action now because, even though we have a balanced budget, this fiscal need exists and we need to start capturing that revenue today. The Senate recognizes the fiscal challenges ahead but believes we’ve passed a balanced budget and can revisit this next year.”
