On January 16, 2025, Maryland introduced Senate Bill 340, a legislative proposal aimed at regulating internet gaming within the state. This bill seeks to establish a framework for the distribution of proceeds generated from online gambling, with significant implications for state revenue and local economies.

The primary purpose of Senate Bill 340 is to ensure that the proceeds from internet gaming are managed effectively and contribute to various state funds. According to the bill, the majority of these proceeds will be transferred daily into the State Lottery Fund, with specific allocations designated for the Video Lottery Facility Employee Displacement Fund. This fund is intended to support employees affected by changes in the gaming industry, particularly as internet gaming becomes more prevalent.

Key provisions of the bill include allowing licensees to retain a portion of the proceeds from live dealer games and other internet gaming activities. Specifically, licensees can keep 80% of the proceeds from live dealer games and 45% from all other forms of internet gaming. This retention is designed to incentivize operators while ensuring that a substantial portion of the revenue is directed to state funds.

The bill has sparked notable discussions among lawmakers and stakeholders. Proponents argue that regulating internet gaming will generate significant revenue for the state, which can be used to fund education, infrastructure, and social services. However, there are concerns regarding the potential social implications of expanded gambling access, including issues related to addiction and the impact on local communities.

Economic implications are also a focal point of the debate. The bill outlines a gradual increase in funding to jurisdictions with video lottery facilities, with allocations set to rise from $6.5 million in fiscal year 2027 to $11.4 million by fiscal year 2031. This structured approach aims to balance the interests of various stakeholders while ensuring that local economies benefit from the influx of gaming revenue.

As the bill progresses through the legislative process, experts anticipate further discussions and potential amendments. The outcome of Senate Bill 340 could reshape Maryland's gaming landscape, influencing not only state revenue but also the broader social and economic fabric of the region. Stakeholders will be closely monitoring the bill's developments, as its passage could set a precedent for how internet gaming is regulated in other states.