Maryland Pursuing Online Casino Legislation After All

With only one week gone of the new year, there are already signs that the iGaming legislation will be front and center in several key states. That includes the state of Maryland where legislators have been reluctant to give iGaming any consideration at all. As they say, "Necessity is the mother of invention."

Facing a revenue shortfall of $2.7 billion deficit in fiscal year 2026, Maryland legislators are scrambling to find reliable sources of revenue. It's no small thing that this is the largest deficit the state has faced over the last 20+ years. The targeted revenue source might be taxes and licensing fees from online casino operations.

In an interview with PlayUSA.com, Sen. Ron Watson stated that he and House Delegate Vanessa Atterbeary would be pursuing iGaming legislation in their respective chambers. He further mentioned that Delegate Atterbeary had already presented a house bill numbered HB0017.

Having not supported iGaming legislation in the past, Sen. Watson has had a change of heart brought on by his discovery of the impending deficit after he joined the Senate Spending Affordability Committee. He told the PlayUSA.com reporter:

"The reason I changed my mind is because the revenue picture has worsened and the governor stated that all options are on the table." Then adding, "This is an option. Prudence dictates that this is available should the need arise as an alternative to raising taxes.”

Referendum Needed to Pass iGaming Legislation

Watson's reluctance to pursue such legislation in 2024 was attributable to the fact the passing of iGaming legislation would require the creation of a referendum. With 2025 being a non-voting year, he didn't see the urgency of iGaming laws with other more immediate needs on the legislative docket. Indeed, necessity has brought about a change in attitude.

The idea that a referendum was needed was established two (2) years ago when Watson consulted with Maryland Attorney General Anthony Brown. Brown was of the opinion that online casino gambling represented an expansion of current gambling laws, and that required putting a referendum in front of voters.

The counter-argument to that opinion is slot machines and casino table games are already legal in Maryland's retail casinos. With that being the case, presenting the same kind of games in an online format would simply be a matter of how the games are being delivered.

Obstacles for the Passing of iGaming Legislation

As the Senate and House prepare to address this issue, there are issues that will surely be encountered. First, it's clear that at least two (2) retail casino operators oppose such activity based on the fact it will cost jobs. Second, Maryland Senate President Bill Ferguson will need a lot of convincing to let said legislation go forward as he has been a hard no in the past. Finally, Gov. Wes Moore has also expressed concerns in the past.

With that said, the state's financial position will certainly be a factor. It will be interesting to see which way this battle goes.