On February 26, 2024, Legislative Director Kevin Kinnally testified before the House Ways and Means Committee in support of HB 1319- Internet Gaming- Authorization and Implementation with amendments.
Contingent upon approval through a referendum by a majority of the voters in the 2024 general election, this bill authorizes the State Lottery and Gaming Control Commission (SLGCC) to license video lottery operators to conduct and operate internet gaming in the state.
In addition to advocating for a more equitable share of new internet gaming revenue, MACo seeks to guard existing revenue streams from brick-and-mortar casinos – upon which local governments have relied for several years to support critical services and infrastructure.
From the MACo Testimony:
MACo anticipates that once implemented, internet gaming will negatively impact local jobs, the local economy, and the revenues associated with in-person table gaming and VLTs. As such, MACo urges the Committee to include a hold-harmless provision to ensure the continued success of local impact grants and the services and programs they provide for casino-adjacent communities.
Like the State, counties face significant budget pressures, driven primarily by the ballooning costs to implement the Blueprint for Maryland’s Future successfully. The local levels of funding for education in each respective jurisdiction have reached record levels in recent years. However, this record county funding, combined with more significant funding requirements mandated by the law, will limit counties’ ability to fund competing governmental needs at basic operational levels.
This can threaten Blueprint implementation and the funding and stability of critical local government services, like public safety and emergency management, public health and social services, transportation infrastructure, libraries, and community colleges. No county government wants to choose between funding education or safety, human services, and infrastructure.
This bill provides counties with a one percent share of internet gaming revenue – distributed to each county based on its school-age population – to fund education. As internet gaming has the potential to generate significant revenue to fund public schools, MACo urges the Committee to consider a more equitable revenue distribution for county governments as true partners in education investments.
HB 1319 was heard in the opposite chamber, the Senate Budget and Taxation Committee, on March 26. MACo submitted testimony in support of this bill with amendments.
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