Online casino already a popular topic in first week of 2025

Delegate Vanessa Atterbeary, chair of the Maryland House Ways and Means committee, will again try to move an online casino bill in Maryland. HB 17 would allow for igaming regulated by the Maryland State Lottery and Gaming Control Commission (MSLGCC). It was prefiled in December and it will officially be filed 8 January, when the legislative session opens.

The bill is similar to one she filed last year that passed the house but didn’t get to the senate floor. Concerns about how digital gambling would cannibalise retail casinos became a sticking point. A senate bill suffered the same fate.

Atterbeary’s latest version would allow for existing video lottery operators and sports betting facilities to apply for icasino licences. The MSLGCC would also be able to issue five licences for applicants who “meet the requirements for an internet gaming licence under the subtitle.”

Tax proceeds from igaming would be earmarked for education. 

Application fee would be $1 million

Among the provisions in the bill: 

• The initial licencing fee would be $1 million (£799,297/€970,400) and five-year renewals would be 1% of an operator’s average annual revenue; 

• Through the first five years following legalisation, operators can deduct between 20-35% of promotional play, depending on gross gaming revenue; 
• 1% of tax revenue would be earmarked for problem and responsible gambling initiatives; 
• If an applicant is live in at least three other US jurisdictions and the regulator deems those places comparable in terms of igaming regulation, the application process will be streamlined; 
• As with the 2024 proposal, Atterbeary proposes unique guidelines for “social equity applicants.” These are essentially online gambling applicants who live in “economically disadvantaged” areas;
• Some percent of online gambling revenue would be funneled to horse racing. It would be used for purses and for a “Racetrack Renewal Fund.” 

The proposal would also allow for multi-state internet gaming agreements, indicating that digital poker will be in the mix. 

Virginia: igaming would be taxed at 15%

Virginia senator Mamie Locke prefiled a bill that would legalise online casino in that state, including live-dealer games. Operators would be taxed at 15% of adjusted gross revenue. The proposal would allow for licenced retail casinos to apply for digital licences. Casinos could have up to three digital partners.

Licences would be valid for five years and would be required to pay a $1 million application fee. According to the text of the bill, each platform must have its own distinct brand. A second brand for online poker platforms would be allowed.

As it did with legal sports betting licences, the regulator would open a 30-day application window for online casino licences. The proposal includes advertising and problem and responsible gambling guidelines and requires that the “1-800-GAMBLER” and the phrase “gambling problem” be “prominently” displayed on the platform. The legal gambling age would be 21.

The bill was prefiled 31 December and the legislative session is set to go from 8 January-22 February.

Illinois bill reclassifies gambling disorder

An Illinois bill would amend HB 5367 to add “gambling disorder” to substance abuse as a “serious public health problem.” The amendment defines gambling disorder and lays out treatment and care services that the state would provide.

This designation would make Illinois unique. Most US states don’t put substance abuse and gambling disorder into the same category in terms of available state programs. Most US jurisdictions earmark some tax revenue for problem and responsible gambling programs, but do not elevate gambling addiction to such a high-level issue.

It also appears that it would provide those suffering from gambling disorder more services, including early intervention and recovery support programs.

The bill passed the house in April 2024 and passed the senate 5 January. It has been sent back to the house for concurrence and consideration of the amendment.

Responsible gambling advocates will likely applaud such a proposal as they continue to fight for services. Gambling addiction, which can have the same negative effects as other addictions, was added to the Diagnostic and Statistical Manual of Mental Disorders (DSM-5) in 2013, meaning that it is a recognised disorder in the US. But there are still few federal or state programs that directly address it.

Minnesota hearing Wednesday

Though no bills have been filed, Minnesota’s senate finance committee Wednesday (8 January) will hold a hearing on the “economic, health, and social harms resulting from online sports betting.” The hearing is scheduled for 10 a.m. local time. The agenda has not yet been posted.