(2/1) Four years ago, Maryland legislators asked their constituents to pass or object to a bill seeking to legalize sports betting in the state through a referendum. Voters passed the bill overwhelmingly. This year, voters could face a similar question.
Lawmakers are finalizing a bill that will let voters decide whether to legalize online casinos. An early draft waiting for approval from lawmakers wants to include this question in the November general election:
"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?
Will Voters in MA Legalize Online Casinos?
If legislators in Maryland include a question asking voters in the state to vote on legalizing online casinos, there's a high chance the bill will be approved. Recent studies show there's a growing interest in safe casino sites in Maryland.
In a study published by CBS News, an interview featuring 1000 adults in Maryland showed that 75% of them were in favor of legalizing online casinos. One of the explanations is that neighboring states already regulate the industry.
Three of the four states that border Maryland all permit online casinos: Delaware, Pennsylvania, and West Virginia. Thousands of casino lovers in MA cross state borders to gamble online at PA, DE, and WV online casinos every month.
By legalizing online casinos, Maryland will legitimize the industry. It will also give its citizens platforms to play slots and table games without the need to cross state borders.
Beyond demand, Maryland is legalizing online casinos to raise more money for education. Few people are likely to object to a bill seeking to put more money into the education kitty.
Past Efforts to Legalize Online Casinos were Unsuccessful
Maryland has attempted to legalize online casinos for several years. An effort to legalize the sector in 2023 failed after legislators raised concerns about cannibalization and taxation.
Maryland has dozens of VLT machine parlors and tribe-owned casinos. Legislators were concerned that legalizing gambling sites could cannibalize these businesses. However after an independent study was done, results showed the threat of cannibalization was minimal.
To further shut down cannibalization concerns, lawmakers presented a new bill will high taxes for online casinos. A tax rate of up to 46% will greatly reduce Internet casino’s advertising budgets. This will ensure they compete fairly with their land-based counterparts.
Another issue concerning lawmakers in NZ is the potential job loss stemming from reduced demand for land-based casinos. A study authorized by MA legislators concluded that brick-and-mortar casinos could suffer a 10% revenue loss if online casinos were to be legalized.
However, the study also clarified that online casinos would more than makeup for this loss. Online casinos will create thousands of jobs in the state, especially sites that offer live dealer games.
Benefits of Legalizing Online Casinos Outweigh Drawbacks
Some lawmakers are rightfully concerned that online casinos could lead to job losses in the state. Many lawmakers are against any idea that could cause unemployment for their constituents.
Fortunately, online casinos hold lots of benefits for Maryland. Below are some of them:
Tax Income
All the six states with legal online casinos make hundreds of millions of dollars through taxation. New Jersey, which has long been the benchmark for successful Internet betting regulation, makes up to $500 million annually from the gambling industry.
Last year, casinos and sportsbooks in Garden State generated $5.78 billion, a new all-time record. Online gambling businesses were an important moneymaker for the state, contributing half of the revenue. New Jersey made $400 million as tax from gambling businesses.
New Jersey uses most of its tax income from online gambling sites to fund education. Some of it goes to infrastructure while a small percentage is used to fight problem gambling.
Job Creation
As mentioned, online casinos won’t have a huge impact on employment in Maryland if the industry becomes legal. That’s because they will create jobs for software developers, managers, accountants, and marketers.
Truth be told, online casinos don't create as many jobs as brick-and-mortar establishments. However, they could add up to 5000 jobs in Little America if records in Garden State are anything to go by.
Added jobs in the online casino sector will help counter any job loss caused by reduced demand for land-based casinos.
Boosting the Local Economy
Online gambling sites in three of the six states that permit iGaming generate more than a billion dollars annually. NJ, as mentioned, makes over $5 billion from the sector. Michigan and Pennsylvania make over $1 billion each West Virginia and Delaware gambling businesses make hundreds of millions of dollars.
The added income from online casinos and sportsbooks doesn’t just help add jobs. It leads to infrastructural development, higher salaries, and increased money circulation. This, in turn, improves property values, attracts more investors, and increases tax income for the state and the Federal government.
A Blow to Black Market Casinos
Earlier on, we mentioned that thousands of people have been crossing West Virginia, Pennsylvania, and Delaware borders to play slots and poker online. Some people have also been using offshore casinos located in Panama, Costa Rica, and Curacao.
By legalizing online casinos in Maryland, more people will spend their money on Maryland-based gambling sites. This will be a huge blow to black-market casinos and a boon for the local investors.
A Safer Gambling Environment
Legalizing online casinos will help the state create measures that protect its citizens from scams, cyberattacks, and problem gambling. For starters, all licensed casinos in MA will need secure websites and apps.
Secondly, the state will vet inspiring casino investors to ensure only competent people can run casino sites in the state. It will also charge licensing fees to eliminate fraudsters.
Another way the state can protect players is by creating laws about betting limits, bonuses, and problem gambling tools. Presently, legislators are setting aside 1% of tax income from casinos to help reduce addicted gamblers. However, the state can do more to educate players on the dangers of excessive gambling.
