Igaming Legislation Moves Forward in the US in January

Author: Sean Chaffin | Fact checker: Tommi Valtonen · Updated: · Ad Disclosure
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Legalized US online casinos celebrated 10 years in 2023 and legislators in a few states are considering adding online gaming this year. Officials in Maryland and Maine are at least discussing the issue as the two states’ legislative sessions get underway.

Sen. Ron Watson (D) is a proponent of online casinos in Maryland and has begun circulating a bill. He pushed for a similar bill last year, but that never got out of committee. He’s hoping for better results this year and plans to introduce the bill on Jan. 10.

“Many view this as an additional revenue stream, currently projected to make between $30 million to $40 million,” Watson told Maryland Matters in September.

Details on the Plans

Watson believes online gaming could be a major driver for a state facing a $400 million budget deficit. The U.S. has seven states with legalized online gaming and the American Gaming Association reported that the industry produced $5 billion in total revenue in 2022 and $1.3 billion in tax revenue.

The bill calls for allowing 12 operators partnering with the state’s six casinos, two each. Operators would face a 46.5% tax with a $1 million licensing fee for four years. Online poker would be legalized and allow for the state to join interstate poker compacts.

iGaming revenue from online slots and table games would include significant funds to combat problem gambling, Watson said. Some casino workers have oppose the plan, believing the industry could lead to job losses at live casinos.

“It will harm thousands of Maryland workers who rely on in-person gaming and tips,” union leaders recently noted in the Baltimore Sun. “It will undermine the promise of good jobs and economic development that the industry made to Maryland’s voters in 2008.”

Maine Casino Plans

In Maine, the state’s tribes have an exclusive license to operate online sports betting and are now looking to add other forms of online gaming as well. Three bills were recently announced and would allow the tribes to offer iGaming in addition to mobile sports betting, which launched in late 2023.

Some in the state, however, have expressed opposition to allowing an expansion of the tribes’ monopoly on online gaming. Gov. Janet Mills (D) has also generally been an opponent to expanded gaming in the state, but did allow for the expansion of sports betting.

The Maryland legislative session runs Jan. 10 to April 8, while Maine’s runs Jan. 3 to April 17.

Alabama Senator Has Doubts About Lottery Gambling Bills

In other casino news, efforts to add a state lottery in Alabama as well as expanded casino gambling faces an uphill climb in this year’s legislative session, according to one state senator. Legislators have begun discussing adding a lottery and casino gaming this year.

Sen. Sam Givhan (R) believes a “clean” lottery bill might have a chance, but fears the issue may be attached to legalizing more casinos. He doesn’t give that much of a chance this year, and says this is part of the challenge the issue has faced in the past.

“I don’t think it’d ever get a vote,” he told WVNN. “If it would come up for a vote on the floor without amendment, then yes. Or without a total hijacking, is what I would say.”

In recent months, some Democrats and Republicans have expressed support for expanded gaming in the state. Alabama has three Wind Creek tribal gaming properties in Montgomery, Wetumpka, and Atmore, all owned and operated by the Poarch Band of Creek Indians. Players can also visit the Victoryland Casino in Shorter to play slot-like electronic bingo as well as wager on simulcast greyhound and horse racing.

Regarding possible expansion, Givhan predicted that the senate wouldn’t move on the issue until the house passed a bill first. He also believes a bill would be “hijacked” in the senate and see amendments added.

“Let’s say that it passed the House, a clean lottery, one that was acceptable, maybe had half the money going into Education Trust Fund, half the money going into General Fund,” Givhan said. “That means everybody can fight another day about where the money’s going to be spent, and fight year to year about where the money’s going to be spent. That would probably be tolerable to me.”

Alabama is one of only five states without a lottery. Givhan said there was much more interest in adding a lottery and predicted a standalone bill would pass. He argued that a standalone casino bill would face a much bigger uphill climb. Tying the two issues together may doom both, according to the senator.

“If we do that, yeah it’s not great, but it is what the people want,” he said. “And then we’re not going really to have to deal with casinos, in my opinion, because casinos standing alone will not pass.””

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Sean Chaffin is a longtime freelance writer, editor, and former high school journalism teacher. A journalism graduate of Texas A&M University, his work has appeared in numerous publications and websites. Sean has covered the gaming and poker industry for many years and writes about many other topics.