Since the Maryland Lottery’s inception in 1973, starting with the simple Twin Win game, Maryland’s journey with gambling has evolved significantly. Initially presented as a means to support education funding through the generated revenue, the lottery has expanded to include at least 10 different games, amassing over $19.3 billion for the state.
The narrative of gambling as a solution to educational funding gaps continued with the legalization of slot machines by the Maryland General Assembly in 2008, under the “Slots for Tots” initiative. Subsequently, the introduction of table games and sports betting followed suit, each time with the promise of solving the state’s education funding issues. However, with Maryland currently facing budget deficits due to its Blueprint for Education, it’s becoming increasingly clear that the anticipated remedy from gaming revenues hasn’t fully materialized.
The latest proposal to address funding woes comes in the form of iGaming, which is being considered through Senate Bills 565 and 603, along with House Bill 1319. iGaming aims to bring the casino experience directly to individuals via smartphones, iPads, and computers, offering round-the-clock access to gambling. This development raises the question of why, despite the availability of sports betting in almost 40 states, only seven have embraced casino gambling on mobile devices, which has been around for more than a decade. The consensus among 43 states against iGaming suggests a recognition of its potential adverse effects.
A New Jersey study highlights the negative financial implications of iGaming, noting that it’s been a net loss for the state, contradicting the notion of it as a revenue booster. Similarly, a study commissioned by the Maryland Lottery predicts a 10% decrease in gaming revenue from Maryland’s six casinos if iGaming were to be introduced. Given the casino industry’s $3.5 billion annual contribution to Maryland’s economy, as reported by the American Gaming Association, such a decline would significantly impact gaming taxes collected from physical casinos, leading to losses in high-paying jobs, many of which are unionized, and a slowdown in casino expansions. This would not only affect property taxes but also reduce the casinos’ contributions to local communities and charity organizations.
Beyond the financial repercussions, iGaming poses considerable social and ethical concerns. Les Bernal of Stop Predatory Gambling and the Campaign for Gambling Free Kids likens iGaming to the extreme form of gambling, equating it to having a casino in your bedroom, facilitating unchecked gambling in privacy. The rise in addiction, particularly among younger demographics, is alarming, with numerous reports documenting the detrimental effects of mobile sports betting and iGaming on individuals and their families.
Morgan State University’s Center for Data Analytics and Sports Gaming Research has urged caution, recommending a comprehensive study before advancing with iGaming legislation. The concerning increase in gambling addiction rates following the introduction of internet sports betting in Maryland underscores the need for careful consideration of iGaming’s potential economic benefits versus its risks.
Maryland residents already have ample gambling options through the lottery, casinos, sports bars, and sports betting. The introduction of iGaming, despite its modest revenue prospects, poses significant risks to the state’s socio-economic fabric. Heeding Morgan State University’s advice, policymakers must prioritize the principle of “do no harm” in their decision-making process, ensuring that the welfare of Maryland’s citizens and economy is safeguarded against the potential pitfalls of iGaming expansion.
