State legislators in Maryland and Virginia are gearing up to debate the legalization of online casino gambling in 2025, a move that could further expand the U.S. iGaming market. With both states drafting bills to regulate and tax digital gambling platforms, this legislative effort could pave the way for new revenue streams while addressing concerns raised by traditional casino operators.
Maryland’s Push for Online Gambling: HB 17
In Maryland, Delegate Vanessa Atterbeary is leading the charge with House Bill 17 (HB 17), pre-filed ahead of the upcoming legislative session starting on January 8. The bill proposes legalizing and regulating online gambling under the supervision of the Maryland State Lottery and Gaming Control Commission (MSLGCC).
This isn’t Maryland’s first attempt at iGaming legislation. A similar effort in 2024 passed the House but failed in the Senate. This year, HB 17 introduces updated provisions to address prior concerns while positioning Maryland as a potential leader in online gambling.
- Licensing Structure: The bill grants iGaming licenses to existing video lottery operators and sports betting facilities. It also offers five additional licenses to qualified new applicants, ensuring competitive opportunities.
- Fees and Renewals: Operators must pay a $1 million application fee, with license renewals costing 1% of their average annual revenue every five years.
- Tax Allocation: Revenue would be channelled into education, problem gambling programs, and horse racing funds, aiming to maximise public benefits.
- Promotional Deductions: Operators can deduct 20%-35% of promotional play expenses from taxable revenue during their first five years, encouraging market growth.
- Social Equity Guidelines: The bill includes provisions to support applicants from economically disadvantaged areas.
- Multi-State Player Pooling: Maryland could join the Multi-State Internet Gaming Agreement (MSIGA), allowing interstate poker and potentially boosting player engagement.
However, the bill isn’t without opposition. Brick-and-mortar casinos, including Maryland Live!, have expressed concerns about online gambling cannibalising their revenues. As lawmakers deliberate, they must carefully weigh the economic opportunities against the potential risks to existing casino businesses.
Virginia’s Legislative Approach
Virginia is also poised to explore the online gambling frontier, with Senator Mamie Locke pre-filing a bill for discussion during the legislative session from January 8 to February 22. The proposed legislation aims to create a regulatory framework similar to Maryland’s but tailored to Virginia’s unique market dynamics.
- Tax and Fees: Operators would face a 15% tax on adjusted gross revenue and a $1 million licensing fee. Licenses would remain valid for five years, providing stability for businesses.
- Retail and Digital Integration: Existing retail casinos could apply for digital licenses and partner with up to three online platforms, enabling a hybrid gambling ecosystem.
- Branding and Advertising: Platforms must adhere to strict branding guidelines, including unique secondary brands for poker operations. Advertising must prominently feature responsible gambling information.
- Legal Age and Application Process: The legal gambling age is set at 21, with a 30-day application window for operators to secure licenses.
By regulating online casinos, Virginia hopes to capture revenue from unregulated gambling platforms and direct it toward public initiatives such as education and workforce development.
Balancing Revenue and Responsibility
Both Maryland and Virginia are framing their proposals as tools to modernise their gaming industries while addressing public needs. Proponents argue that legalising online gambling offers significant economic benefits without increasing taxes or public spending. The potential for job creation, increased state revenues, and enhanced funding for education and social programs is driving much of the support for these bills.
Critics, however, remain sceptical. Traditional casino operators fear that online gambling could erode their customer base, while some policymakers worry about the social implications of expanded gambling access. Responsible gambling advocates are also urging legislators to prioritise safeguards for at-risk individuals.
Industry Context: A Growing Market
Nationally, Maryland and Virginia are joining a growing list of states considering iGaming legislation. Currently, six states—Delaware, Michigan, Nevada, New Jersey, Pennsylvania, and West Virginia—are part of the Multi-State Internet Gaming Agreement. This compact facilitates interstate poker and could provide a blueprint for Maryland and Virginia to expand their reach.
The U.S. iGaming market has seen remarkable growth in recent years, with online casinos generating billions in annual revenue. As more states legalise digital gambling, experts predict continued expansion, driven by consumer demand and technological advancements.
Key Takeaways for 2025
While debates in Maryland and Virginia are still in the early stages, the outcomes could significantly impact the broader U.S. gaming landscape. If successful, these initiatives would not only bring online gambling to two key states but also signal a shift toward greater acceptance of iGaming nationwide.
With legislative sessions set to begin in January, all eyes will be on the negotiations, amendments, and compromises that will shape the final bills. Whether online casinos become a reality in Maryland and Virginia by the end of 2025 remains to be seen, but the stakes—financial, political, and social—are undoubtedly high.
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