MD Senator Watson Drafts iGaming Bill Alongside iDEA
Senator Watson is currently working on an iGaming (and online Bingo) bill to be introduced soon in MD. John Pappas has gone back and forth with Sen. Watson on language, with the attempt to simplify the eligible entities for a license and lower the tax rate.
However, it seems to be proving difficult. The bill mirrors many of the policies included in the bills that were introduced last year. Sen. Watson is working with Delegate Edith Paterson to cross-file the bill in the House.
Without a strong leader running these bills, like Chair Atterbeary was previously, it may be challenging getting the momentum to advance. Watson communicated to iDEA that he was not instructed by leadership to do this, but wanted to get something out there in case the state needs money. iDEA will continue to liaise with him on the bill and in the meantime, we can determine how much effort we want to put behind supporting/changing in MD.
Below is the bill summarized and you can find the drafted bill here.
What it does:
Authorizes online casino gaming (iGaming) and online bingo in Maryland.
Requires voter approval via statewide referendum before launch.
Eligible iGaming applicants include:
Existing Maryland casinos (Video Lottery Operators)
Maryland sports wagering operators licensed by Dec. 31, 2026
Certain Maryland-based companies that meet very specific requirement (this was written to give Urban One a license)
One iGaming platform per license
Up to one operating partner per license
Additional licenses available if casinos partner with social equity applicants (≥33% ownership)
Eligible online Bingo applicants:
Limited to existing commercial bingo operators licensed in Maryland
Bingo licensees may not also hold an iGaming license
Effective tax rates:
40% on RNG / traditional iGaming
20% on live-dealer games
40% on online Bingo
Promo Policy:
Limited promo deductions for first 5 years only; No promotional deductions after Year 5
Partial deductions based on prior-year revenue:
35% deduction for operators under $4M GGR
Phases down to 20% once GGR exceeds $12M
Casino Employee Protection Fund:
Creates a Video Lottery Facility Employee Displacement Fund
Purpose is to support casino workers displaced by iGaming
Funded with Up to $10M in Year 1 of iGaming operations
Social Equity Requirements:
Generally ≥5% ownership by social equity applicants
Competitive licensing rounds prioritize ≥33% social equity ownership
Employee profit-sharing arrangements as an option
Reduced license fees for majority minority-owned applicants