Maryland lawmakers are once again considering legislation to legalize online casino gaming, this time through Senate Bill 885. The proposal, sponsored by Sen. Ron Watson, would put the question of iGaming before voters in a statewide 2026 referendum while embedding new labor protections, licensing provisions, and economic impact measures in the state’s gaming regulatory framework.
SB 885 would place the legalization of online casino gaming before Maryland voters in a statewide referendum scheduled for November 2026, allowing residents to determine whether iGaming should be authorized.
The bill also establishes a $10 million displacement fund intended to support workers who may be affected by the expansion of online gaming. To further address labor concerns, applicants for iGaming licenses would be required to either maintain a collective bargaining agreement or enter into a labor peace agreement with relevant labor organizations. These agreements would prohibit work stoppages for at least five years.
In addition, the legislation creates financial incentives for in-state investment. Operators offering only live dealer online games and committing at least $5 million to build studio facilities in Maryland would qualify for a 50% license fee reduction, lowering the fee to $500,000. Revenue from live dealer games would be taxed at 20%, compared with a 40% tax rate on other online casino revenue.
Finally, the bill mandates annual impact studies to assess how online gaming may affect Maryland’s brick-and-mortar casinos and surrounding businesses, providing lawmakers with ongoing data to evaluate the industry’s economic effects.
SB 885 also separates online casino gaming from online poker within its regulatory framework, allowing the state to apply different standards to each vertical. By distinguishing between the two, lawmakers would be able to tailor licensing requirements, tax structures, and operational rules based on the specific characteristics of each product.
Online poker, which often involves peer-to-peer play and potential multistate liquidity agreements, presents different regulatory considerations than house-banked casino games. Treating the categories independently provides policymakers with greater flexibility to address compliance, oversight, and market structure in a more targeted manner.
Senate Bill 885 emerges as lawmakers are already weighing significant changes to Maryland’s sports betting framework under House Bill 518, signaling a broader reassessment of the state’s gaming policies.
While HB 518 focuses on improving consumer protections in sports wagering, SB 885 shifts the conversation toward expanding legalized gaming through online casinos.
Taken together, the two proposals highlight a changing landscape in Maryland: one aimed at strengthening responsible gaming guardrails and another exploring new revenue opportunities through iGaming.
The timing of SB 885, following the sports betting reform debate, underscores that Maryland’s gaming landscape is in flux, with lawmakers simultaneously considering expansion and stricter regulatory controls as part of a broader policy recalibration.
