A fresh iGaming bill has reopened the fight in Maryland, with lawmakers split over new tax revenue, casino jobs, and gambling harm.
Budget Pressure Drives New Push
Maryland lawmakers are back to debating online casinos, and the timing is no accident.
Ron Watson’s Senate Bill 885 would legalize online casino games and online bingo under state oversight. He argues Maryland needs new revenue and should stop letting unregulated sites take bets from local players without returning anything to the state.
At a committee hearing, Watson pointed to a looming budget gap, saying the shortfall could hit $2.3 billion next term and grow in the years ahead. His case is that iGaming offers a new stream of tax money at a time when lawmakers are hunting for one.
How The Bill Is Set Up
The proposal would let video lottery operators and certain sports betting licensees run online casino platforms.
A full iGaming license would cost $1 million. Live dealer-only and online bingo licenses would cost $500,000. Licenses would run for five years, with renewals tied to average annual proceeds.
The tax split is steep enough to catch attention. Live dealer games would be taxed at 20%, while other online casino games would face a 40% rate. Watson estimates the market could bring in about $250 million a year.
The bill also includes guardrails. Operators would have to display problem gambling warnings, ban credit card deposits, and face penalties of up to $1 million for tampering with gaming systems.
Virginia Adds Urgency
Watson says Maryland is not debating this in a vacuum.
He pointed to Virginia, where lawmakers have also been weighing online casino legislation. That matters for Maryland because regional competition is already a sore spot, especially for MGM National Harbor, which draws heavily from Northern Virginia.
Watson argues a new Virginia casino would do more damage to Maryland’s retail market than regulated online play ever could. His broader pitch is that Maryland needs to stay competitive instead of waiting to lose players.
Opposition Stays Firm
Not everyone is buying that argument.
Ocean Downs Casino and Worcester County officials say online casinos could pull play away from physical properties, cutting jobs and weakening the local impact casinos were supposed to deliver. For critics, this is the core issue: more gambling revenue on paper could still mean less foot traffic, fewer shifts, and less money flowing into host communities.
There is also concern over problem gambling. Opponents say online casino play is easier to access and harder to control, which can raise the risks for vulnerable players.
What Comes Next
SB 885 has passed its first reading and remains under review in the Senate Budget and Taxation Committee.
Even if lawmakers back it, Maryland voters would still have the final say through a referendum.
So once again, Maryland is staring at the same question: is online casino legalization a smart way to capture money already leaving the state, or a move that creates more problems than it solves?
