Maryland Senate Committee To Hold Hearing On iGaming Bill Wednesday

The Maryland State Senate Committee on Budget and Taxation will debate on Wednesday Sen. Ron Watson’s bill to legalize internet casino gaming, and the tone of those discussions could offer clues how potential expansion will fare in state legislatures nationwide for 2025.

Watson’s bill, SB 0340, has a companion in the House (HB 0017) via Del. Vanessa Atterbeary as Maryland legislators are attempting for a second straight year to legalize iGaming. Atterbeary, who chairs the House’s Ways and Means Committee, will have her bill discussed there next month.

There are currently seven states with internet casino gaming, and Rhode Island is the only state to legalize it over the last four-plus years. After a largely dormant 2024 due to federal elections, multiple states are considering iGaming in 2025 as a way to try and replace federal funding that has lessened with more distance from the 2020 COVID-19 pandemic.

A window of opportunity with companion bills

West Virginia Del. Shawn Fluharty, who is also president of the National Council of Legislators from Gaming States (NCLGS), will offer testimony in support of Watson’s bill. On his commute to Annapolis, Fluharty explained to Casino Reports that having both bills working along their respective paths in the statehouse is a net positive toward potential legalization.

“I think it’s great that Maryland is running both pieces of legislation simultaneously,” said Fluharty, who led the successful push to legalize iGaming in his state in 2019. “They had success in the House last year, so the fact that the Senate is taking it up early in session is a great sign.

“I will tell you that Sen. Ron Watson has been a valuable member of NCLGS for many years. He’s truly invested in trying to find the right answers on what good policy should look like.”

When great minds think alike

Good policy may be the near-mirror text in Watson and Atterbeary’s bills. Atterbeary added Watson’s component regarded licensees sharing data with Morgan State University and Bowie State University after that proved a sticking point in 2024.

The bills have identical text regarding a minimum $5 million investment by an operator during its initial license period to construct and operate live-dealer studios in-state. Former Maryland Del. Darryl Barnes tied this component to the potential for minority operators, citing potential licensee Urban One as a group ready to act.

“They have said they want to do full, on-board live casino gaming, which would also be turned into a dual-purpose, full-blown studio for media and television,” Barnes said. “And [Urban One CEO Alfred Liggins] has said that he is not looking for any tax credits from the state, that he is willing to spend his own money and getting this stood up. … That is a testament of what real minority participation would look like. And the state would benefit from that.”

Both bills include identical language that proposes:

• A displacement of up to $10 million created by licensees the first year of iGaming
• Social equity provisions that allow video lottery licensees to partner with applicants for an additional license
• A sliding scale for permissible promotional deductions based on revenue generation during the initial 5-year license period ranging from 20% for operators that exceed $12 million to 35% for those who make less than $4 million

How do you define a ‘win’?

It is unsurprising Fluharty is confident in potential expansion this year. NCLGS released a comprehensive model for iGaming legislation at its meeting in New Orleans last November, which legislators can use as a tool. The biggest takeaway in creating that model according to Fluharty was getting everyone in the same room — operators, responsible gaming proponents, and legislators — to form that blueprint.

“It was one of those rare opportunities we took upon ourselves to put something together that could be built off for years to come to close the education gap and raise awareness,” he said.

Fluharty did not offer any predictions of which states or how many states would legalize internet casino gaming in 2025. Though West Virginia launched only five years ago, it also feels like an eternity. Fluharty, therefore, is content to celebrate the bite-and-hold victories to get to the ultimate goal of passage.

“There are many different types of wins, right?” he asked rhetorically. “Getting a bill introduced in a state where it wasn’t introduced previously? That’s a win. Getting a bill on committee and out of committee as we saw in Indiana [Tuesday]? That’s a win. Getting to the floor and passing a chamber? That’s a win.

“In Maryland last year, they were able to get their iGaming bill out of the House and now they’re getting a hearing in the Senate already. That’s a good sign for movement as well.”