Maryland Online Gambling Hearing Highlights Differing Views on the Issue
Senator Ronald Watson discussed the fallacy of cannibalization during the Maryland online gambling hearing on Wednesday. In addition, he said an illegal market valued at $200 million exists within the state.
The state senate budget and taxes committee held a three-hour informative hearing. Proponents and opponents of SB340, the bill that would legalize iGaming in Maryland, testified about equal numbers. A vote was not taken. After a heated debate, cannibalization finally took center stage. A key issue in the national debate on Internet casino legalization is the potential loss of income from traditional casinos to online ones.
According to bookie pay per head experts, the gaming business is deeply fragmented due to cannibalization. Local casinos that aren’t as big claim that internet gambling sites steal their consumers and, eventually, their money. This puts a strain on the retail gambling industry and causes employment losses.
Online casinos could increase the income of established casino operators. Based on pay per head bookie reports, income from internet gambling exceeds that from brick-and-mortar establishments in the seven US states where it is legal. Who gains and who loses is the key question.
Maryland Online Gambling Hearing Recap
The first to bring it up was The Cordish Companies, owners of the Live! Casino in Maryland. During the 2024 iGaming hearings in Maryland, the company’s statement effectively halted the legalization process. In December, corporate representatives voiced their opposition to legalization in Louisiana, among other places where they have spoken. But if the opportunity presented itself, the business would join the market. According to the best pay per head providers, Cordish’s online casino is already available in Pennsylvania.
Mark Stewart, a spokesperson for Cordish, stated that while his firm employed three thousand people for its retail operation, just one individual was recruited to run the internet casino in Pennsylvania. He detailed Cordish’s investment of $900 million in brick-and-mortar facilities and $500,000 in iGaming.
Caitlyn McDonough, a representative for Penn Entertainment, agreed with Stewart that her firm is against the measure but does not apply to iGaming. She stated that, in her opinion, a more complementary structure to Penn’s Hollywood Casino Perryville may be created.
Comparing Maryland with Pennsylvania
The newest Pennsylvania revenue report shows that the Cordish Companies’ retail and digital casinos have boosted income, according to John Pappas, who represents the iDevelopment and Economic Association (iDEA). He asserted that the data demonstrated an 11% surge in retail slot machines and an 18% surge in internet gaming income.
According to Bobby Jones, general manager of Ocean Downs Casino, smaller land-based casinos are severely hurt by internet gambling. She claimed to have witnessed this firsthand when legalization occurred in Pennsylvania. According to Jones, 45% of the staff were let go after the Presque Isle Casino saw a 15% drop in revenue. She is worried that Maryland will experience the same thing.
During his testimony, Jerry Evans, representing the Bingo World and Rod ‘n Reel bingo halls, asked for an amendment to SB 340. He proposes banning internet casinos selling bingo and including bingo halls as licensees. He predicted that bingo halls would close their doors and commercial bingo in Maryland would end unless those modifications were made.
Last but not least, Wednesday’s witness was Stewart of the Cordish Companies. In his opening remarks, he stated that the business has consistently opposed iGaming legislation in all its operating jurisdictions.
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