Maryland has long been a hotspot for gambling enthusiasts, with its land-based casinos generating significant revenue for the state. However, the conversation around legalizing online casinos in Maryland has gained momentum in recent years. While neighboring states like Pennsylvania and West Virginia have already embraced iGaming, Maryland is still debating whether to follow suit.
The introduction of House Bill 17 in 2025 has reignited discussions about online casino legalization. Proponents argue that regulation could generate substantial tax revenue and curb illegal gambling, while opponents worry about its impact on existing casino jobs and gambling addiction concerns. This article explores the current status of online casinos in Maryland, the proposed legislation, and what the future might hold for online gambling in the state.
The Current Legal Status in Maryland
As of 2025, online casinos remain illegal in Maryland. While the state has legalized retail and online sports betting, online slots, table games, and poker remain prohibited under current law.
However, Maryland residents can still access certain online gambling alternatives, such as:
- Social casinos – Platforms that allow free-to-play games with virtual currency.
- Sweepstakes casinos – Sites where players can use promotional sweepstakes entries to win real cash prizes.
- Offshore gambling sites – Unregulated international platforms that operate outside of Maryland’s jurisdiction, posing risks to consumers.
The lack of legal online casinos has resulted in Maryland losing potential revenue to neighboring states. Both Pennsylvania and West Virginia have fully legalized iGaming markets, generating hundreds of millions in tax revenue annually. According to mdbetting.com, Maryland lawmakers are now considering regulation to keep gambling revenue within the state.
A Renewed Push for Legalization
House Bill 17 (HB17), introduced by Delegate Vanessa Atterbeary in January 2025, aims to establish a regulated online casino industry in Maryland. The bill outlines a framework for licensing, taxation, and consumer protections.
Key Provisions of House Bill 17:
- Licensing – Only existing land-based casinos and their online gaming partners would be eligible for licenses.
- Taxation – A 15% tax on gross gaming revenue, with funds allocated to public projects such as education and infrastructure.
- Responsible Gambling Measures – Stricter age verification, self-exclusion programs, and responsible gaming initiatives.
- Cybersecurity Protections – Enhanced security protocols to safeguard user data and prevent fraud.
Atterbeary argues that legalizing online casinos would bring Maryland in line with other states benefiting from iGaming revenue. However, opponents—including labor unions and some casino operators—fear that online gambling could cannibalize land-based casino profits and lead to job losses.
Despite these concerns, the momentum for online casino legalization in Maryland continues to grow. If House Bill 17 gains enough support, it may be put to a public referendum, allowing Maryland voters to decide the fate of online gambling in the state.
Opposition to Online Casino Legalization
While House Bill 17 presents a structured approach to legalizing online casinos in Maryland, it has faced significant opposition from various groups. These opponents argue that legal iGaming could have negative consequences for local businesses, employment, and social well-being.
Concerns from Land-Based Casino Operators
Maryland is home to six commercial casinos, including major establishments like MGM National Harbor and Live! Casino & Hotel. These casinos generate billions in revenue annually and employ thousands of workers. Many operators fear that legalizing online casinos could reduce foot traffic to their physical locations, ultimately cutting into their profits.
However, data from states like New Jersey and Pennsylvania suggests that iGaming does not necessarily harm brick-and-mortar casino revenue. Instead, it can complement the industry by engaging a different demographic—primarily younger players who prefer online gaming.
Labor Unions and Job Loss Fears
Labor unions representing Maryland’s casino workers have been some of the most vocal opponents of online casino legalization. Their primary concern is that digital gambling platforms could lead to a decline in traditional casino employment. In the 2024 attempt to legalize iGaming, union members testified that job losses in hospitality, customer service, and casino operations could be substantial if more players shift to online gambling.
To address these concerns, House Bill 17 proposes workforce development programs and potential job transition initiatives. However, it remains to be seen if these measures will be enough to ease opposition from labor groups.
Problem Gambling and Consumer Protection Concerns
Another key argument against online casino legalization is the potential for increased problem gambling. Opponents, including some lawmakers and advocacy groups, worry that 24/7 access to online casino games could lead to higher rates of gambling addiction.
Proponents counter that a regulated iGaming market could offer better consumer protections than the current unregulated options. Legal online casinos would be required to implement responsible gaming features, such as self-exclusion tools, deposit limits, and access to problem gambling resources.
Lessons from the 2024 Online Casino Bill Failure
Maryland has attempted to legalize online casinos before. In 2024, a similar bill passed in the House of Delegates but stalled in the Senate due to opposition from casino operators, labor unions, and conservative lawmakers. Ultimately, the bill was not included in the state’s budget and was left off the legislative agenda, effectively killing its chances for that year.
Why the 2024 Bill Failed:
- Strong industry pushback – Casino operators feared revenue cannibalization.
- Concerns about problem gambling – Lawmakers were hesitant due to potential social risks.
- Lack of voter urgency – Unlike sports betting, which had overwhelming public support, iGaming did not generate the same level of enthusiasm.
Despite this setback, House Bill 17 incorporates lessons from the previous attempt by addressing concerns over job losses, social equity, and responsible gaming. The bill’s sponsors are hoping that these revisions will make it more appealing to lawmakers and voters alike.
Maryland Lottery’s Role in the Legalization Debate
The Maryland Lottery and Gaming Control Agency has been a major advocate for online casino legalization, arguing that it would help curb illegal gambling and generate much-needed tax revenue for the state.
Combatting Illegal Online Gambling
A key argument in favor of iGaming regulation is the existence of illegal offshore gambling sites. According to a 2024 report from Yield Sec, over 892 illegal online gaming operators were active in the U.S., with hundreds of affiliates promoting them. The Maryland Lottery estimates that these unregulated platforms cost the state nearly $197 million annually in lost tax revenue.
To combat this, the agency has worked with the Attorney General’s Office to issue cease-and-desist letters to unlicensed operators. However, many of these sites continue to operate, highlighting the need for a regulated alternative.
Revenue Opportunities from Legal iGaming
Neighboring states like Pennsylvania and West Virginia have shown that legal online casinos can be highly lucrative. Pennsylvania’s iGaming industry alone generated over $1.5 billion in revenue in 2023, with a significant portion going toward state-funded programs.
By legalizing online casinos, Maryland could redirect millions of dollars in gambling revenue away from offshore sites and into state-approved platforms, benefiting public services such as education, infrastructure, and addiction treatment programs.
Next Steps for the Maryland Lottery
The Maryland Lottery has already expressed interest in regulating a potential iGaming market. If House Bill 17 gains traction, the agency would likely oversee licensing, enforcement, and consumer protections. The agency has also hinted at additional studies on illegal gambling trends, further strengthening the case for legal online casinos.
The Future of Online Casinos in Maryland
The fate of online casinos in Maryland largely depends on the progress of House Bill 17 and the broader legislative landscape. While opposition remains, growing support from lawmakers, industry stakeholders, and consumers suggests that Maryland could eventually join the ranks of states with legalized iGaming.
Potential Timeline for Legalization
Even if House Bill 17 passes in the Maryland General Assembly, it does not mean online casinos will be immediately operational. Because gambling expansion requires a constitutional amendment, the bill would need to be placed on the 2026 ballot for voter approval. If voters approve the measure, it could take until 2027 or later before online casinos officially launch in Maryland.
Key Steps in the Legalization Process:
- House Bill 17 must pass in the Maryland General Assembly – This requires approval from both the House and Senate.
- Bill would be placed on the 2026 general election ballot – Maryland voters would decide whether to approve the expansion of online gambling.
- The regulatory framework would be developed – The Maryland Lottery and Gaming Control Agency would establish rules, issue licenses, and implement consumer protections.
- Online casinos could launch by 2027 – If everything moves forward as planned, Maryland residents could have access to legal online casino platforms within the next few years.
The Role of Public Opinion
Voter sentiment will play a critical role in determining whether Maryland legalizes online casinos. Recent polling suggests that public support for iGaming is growing, particularly among younger demographics. However, many older voters and conservative groups remain hesitant about expanding gambling access.
To boost public approval, proponents of House Bill 17 may launch education campaigns highlighting the economic benefits of iGaming, such as:
- Increased tax revenue for public programs
- Consumer protections that do not exist with offshore gambling sites
- Job creation in the tech and regulatory sectors
Various Types of Web-Based Casinos and Their Benefits(Opens in a new browser tab)
Will Maryland Follow Its Neighbors?
States like Pennsylvania, West Virginia, and New Jersey have demonstrated the financial success of regulated online casinos. Pennsylvania alone generated over $1.5 billion in gaming revenue in 2023, with a significant portion benefiting state programs.
Maryland, which has already embraced online sports betting, may find it increasingly difficult to justify keeping online casinos illegal while losing potential revenue to neighboring states.
