Maryland House Proposes Changes to Online Casino Licensing

 

In an endeavor to foster inclusivity and diversity within Maryland's burgeoning online casino industry, a Maryland House subcommittee led by Bill sponsor Rep. Vanessa Atterbeary has embarked on a mission that promises to reshape the landscape of online gambling in the state. However, with this ambitious vision also comes a complexity that has sparked both intrigue and concern within the industry.

 

The Key Developments:

1. Expansion of Licensing: The proposed amendment seeks to double the number of online casino licenses in Maryland from 12 to 25, offering increased opportunities for operators in the state's burgeoning online gambling market.
2. Emphasis on Diversity and Equity: With a focus on inclusivity, the amendment introduces conditions aimed at ensuring that licensees represent diverse backgrounds and communities. This includes provisions mandating revenue sharing with social equity partners and setting stringent criteria for social equity applicants.
3. Responsible Gambling Measures: In a bid to address concerns surrounding problem gambling, the proposed legislation prohibits the use of credit cards to fund online casino accounts and implements deposit limits. These measures underscore a commitment to promoting responsible gambling practices.

 

Atterbeary's proposed amendment to Maryland's online casino legislation, HB1319, unveiled on Tuesday in the House Racing and Gaming Subcommittee, signals a significant expansion of the state's online casino licensing framework. Among the key provisions of the amendment is the increase in potential online casino licenses from 12 to 25, effectively doubling the opportunities for operators in the state.

Yet, the expansion of licenses is not the only focal point of Atterbeary's amendment. Embracing principles of diversity, equity, and inclusion, the proposed legislation introduces conditions aimed at ensuring that licensees represent a broad spectrum of backgrounds and communities. This includes provisions mandating revenue sharing with social equity partners and setting stringent criteria for social equity applicants, defining them as individuals or groups with a vested interest in marginalized areas or communities.

The amendment also addresses key concerns surrounding responsible gambling practices and financial integrity. Prohibiting the use of credit cards to fund online casino accounts and implementing deposit limits are among the measures aimed at mitigating problem gambling issues. Furthermore, stringent regulations are introduced to prevent revenue from flowing from illicit or sanctioned sources, underscoring a commitment to upholding the integrity of the industry.

However, amidst the ambitious proposals lie certain challenges and uncertainties. The intricate categorization of licenses into three distinct tiers, each with its own set of requirements and conditions, adds a layer of complexity that some industry stakeholders may find daunting. Additionally, concerns have been raised regarding the potential impact of the proposed legislation on the operational efficiency of online casino operators, particularly in light of the stringent tax rates imposed on gaming revenue.

Moreover, the timeline for the implementation of the proposed changes remains unclear, with questions lingering over the practicality of the amendment and its potential implications for the launch of Maryland's online casino market. Similar efforts to diversify Maryland's online sports betting industry faced significant delays, casting doubts on the feasibility of the proposed model.

 

“As introduced, Atterbeary’s bill included 12 untethered online casino licenses. This differed from SB603, the Senate bill that provides each of Maryland’s six casinos with two skins each. The amendment creates three categories of licenses.”

 

The Conclusions

As the legislative process unfolds, all eyes are now on the House Ways and Means Committee, chaired by Atterbeary, where the fate of HB1319 hangs in the balance. With Maryland's crossover deadline fast approaching, legislators face mounting pressure to navigate the complexities of the proposed legislation and secure its passage before the window of opportunity closes.

Ultimately, the fate of Maryland's online casino industry rests not only in the hands of lawmakers but also in the hands of Maryland voters, who will have the final say on the legalization of online gambling in the state come November. In the meantime, stakeholders await further developments with cautious optimism, mindful of the challenges and opportunities that lie ahead in this evolving landscape of online gaming regulation.