Maryland Lawmakers Revisit Online Casino Bill

Maryland lawmakers are reconsidering the legalization of online casinos as the state faces a projected $2.7 billion budget deficit for fiscal year 2026, the largest in nearly two decades. Senator Ron Watson and Delegate Vanessa Atterbeary have pre-filed a bill for the 2025 legislative session, reviving the online casino debate. The bill follows a similar proposal passed by the House in 2024, but which was stalled in the Senate.

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Recent Developments

Watson, who had initially said he would not pursue the bill this year, changed his position after joining the Senate Spending Affordability Committee and learning more about the deficit. “The revenue picture has worsened, and the governor has stated that all options are on the table,” Watson said. “This is an option. Prudence dictates that this is available should the need arise as an alternative to raising taxes.”

Online casinos are projected to generate over $500 million in state revenue in the first year, with the potential to reach nearly $1 billion annually once the market matures. The need for new revenue sources is growing, and Watson believes the online casino bill could help close the gap without raising taxes. “Many people are working on bills to reduce the deficit as we speak,” he said. “We’ll soon know if those solutions are sufficient or if we need to go even further.”

The main hurdle to legalizing online casinos is that it requires a voter referendum, which would not occur until the November 2026 election. While Watson initially thought this would delay the issue, he now believes the legal distinction between land-based and online gambling is less significant than previously thought. “I don’t think the Attorney General’s mind is made up,” Watson said, referring to a previous opinion that online casinos would require voter approval. “He’s open to new evidence.”

Opposition to online casinos remains strong, particularly from employees of Maryland’s existing casinos, who fear job losses. Governor Wes Moore has also expressed concerns about problem gambling, but Watson argues that the state has already taken steps to regulate other forms of gambling, including sports betting. “Adults should have the ability to decide how to spend their discretionary income,” Watson said.

 

This is an option. Prudence dictates that this is available should the need arise as an alternative to raising taxes.

 

The Future

In 2024, the House passed the online casino bill and included the potential revenue in the state’s budget proposal to fund education initiatives under the Blueprint for Maryland’s Future. The Senate, however, did not take up the issue. This year, as the budget deficit looms larger, it remains to be seen whether lawmakers will reconsider iGaming as a revenue solution.

The Maryland General Assembly opens its 2025 session on January 8. Watson and Atterbeary hope to have a vetted solution ready for lawmakers to consider. With the state facing a significant financial crisis, online casinos could provide a much-needed revenue boost if lawmakers are willing to act.