Delegate Atterbeary Discussed Maryland Online Casino Bill

In a recent Maryland House Ways and Means Committee hearing, Delegate Vanessa Atterbeary was on hand to discuss House Bill 17 (HB 17) with various committee members. Del. Atterbeary, who was the chair and sponsor of HB 17, conversed with traditional casino operators within the state and addressed their concerns about the potential of having real money online casino options within the Free State.

Brick-and-Mortar Casino Operators Weigh In

Given the touchy subject, it was expected that the majority of the queries pertaining to HB 17 came from conventional casino operators, namely, The Cordish Companies, and PENN Entertainment.

Mark Stewart, EVP of The Cordish Companies, testified in opposition to HB 17 after the Maryland Live! parent company previously opposed Atterbeary‘s 2024 version of the bill which passed through the House but didn’t pass in the Senate.

The Cordish Companies company has been “consistent” in their stand in opposing iGaming in other states such as Pennsylvania, which is one of the prime locations for the best US online casinos. However, Del. Atterbeary questioned Stewart on why Cordish would seek an online casino license if it is firmly against such developments,

“We stand to make a lot of money if iGaming is legalized,” Stewart said. “We’re a market leader in this state, on the sports betting side we’re partnered with FanDuel and we have nearly 60% of the market. We will do very well but we think Maryland won’t do very well and we know our employees won’t do very well, and that’s why we’re opposed to it.”

Del. Atterbeary countered by saying that an amendment should be put in the legislation that states all of the brick-and-mortar casino operators get a license except Maryland Live, 

“Maybe that should go in since it’s such a detriment to the state of Maryland. Perhaps that’s what we should do,” Del. Atterbeary added.

PENN Entertainment, who runs Hollywood Casino Perryville in Maryland, also opposed the proposal. Sean Malone, PENN Entertainment’s representative, cited cannibalization concerns but did note the firm “could have easily testified in support with an amendment.” 

Malone noted that while PENN would also seek a license if the market opened, the company doesn’t agree with the iGaming market opening up to operators who do not have a land-based footprint in the state.

HB 17 Addressing Cannibalization Concerns

When it comes to possible cannibalization and unemployment concerns from committee members, HB 17 stipulates that certain proportions of gaming revenue would be dedicated to initiatives such as an employee displacement fund. 

The Lottery would also be required to publish an annual report on the effects that iGaming has had on any ancillary businesses such as restaurants and bars surrounding physical casinos.

Moreover, applicants for licenses would have to maintain a Maryland headquarters for 10 years, employ a certain number of people and meet a variety of other conditions, unless they have existing standing in the state as a gaming licensee.

HB 17 to Help State Regulate Online Casinos

Del. Atterbeary noted that the new version of HB 17 would tax most iGaming at 55%, as a way to regulate the online casino market within the state, and to protect players who enjoy partaking in online casino games.

“At this point, we’re not being left behind,” she said, pointing to other states who have moved iGaming legislation. “We are behind, quite frankly.”

Del. Atterbeary also responded to sentiments from the committee members that iGaming is “too much too fast,” for their state that leaving things unregulated allows vulnerable people to be targeted by bad actors. 

“What’s happening too much too fast is sweepstakes and all these unregulated operators that are coming out and targeting just the people that you’re trying to protect,” Del. Atterbeary added.

John Pappas of GeoComply was in support of taxing iGaming as part of HB 17. Pappas noted that based on a lower-than-proposed 30% tax rate, Maryland could expect $1.65 billion in revenues over the next five years. 

Pappas also stated that Pennsylvania’s retail gaming business has increased since it legalized iGaming, “a testament to how iGaming and land-based casinos can grow together, and how the worker community can thrive under an iGaming environment.”