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Lottery and gaming agency projects steady revenues; sports wagering growth noted

2308725 · February 12, 2025
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Summary

The Maryland Lottery and Gaming Control Agency said fiscal 2024 contributions to state ‘good causes’ remained strong while the fiscal 2026 allowance reflects increases in vendor, personnel and advertising costs; sports wagering revenue growth was highlighted as a rapidly expanding source of state contributions.

The State Lottery and Gaming Control Agency presented its fiscal 2026 allowance to the Education and Economic Development Subcommittee, reporting largely stable lottery and casino revenues for fiscal 2024 and faster growth in sports wagering receipts.

Budget and major cost drivers

DLS analyst Elizabeth Bridal summarized the agency’s budget; the fiscal 2026 allowance totals roughly $133 million (about a 7% increase), mostly from special funds tied to gaming revenues. Bridal said roughly 42% of the agency’s budget covers central monitoring and control contracts (ticket printing/distribution, instant‑ticket equipment, and casino monitoring); personnel costs account for about 31% and advertising about 15%. She noted vendor fees can rise and fall with gaming revenues, and that the agency requested one new lottery sales representative while reducing five contractual FTEs.

Revenues and distributions

Agency director John Martin and CFO Paula Yocom said the agency contributed nearly $1.6 billion for state “good causes” across lottery, casinos and sports wagering in fiscal 2024, with lottery ticket sales of $2.7 billion and a general‑fund transfer of about $655 million in that fiscal year. Casino gaming (slots and table games) generated nearly $2 billion in gaming revenue in fiscal 2024 and contributed to a range of statutorily directed recipients including the Education Trust Fund; table‑game and mobile‑sports wagering tax proposals were discussed as potential BRFAA changes but those tax proposals would need separate legislative action and would not immediately change the agency’s FY26 operating allowance.

Sports wagering

Bridal and agency staff noted rapid growth in sports wagering: in fiscal 2024 sports wagering and fantasy competitions produced about $60.3 million for the Blueprint Fund and were on pace for further growth in FY25. Agency staff highlighted responsible‑gaming initiatives, collaboration with the University of Maryland Center of Excellence on Problem Gambling, and interjurisdictional coordination on illegal gaming markets.

Outcome

DLS recommended concurrence with the governor’s allowance; agency staff requested committee approval of the fiscal 2026 budget as submitted. No legislative action or votes were recorded during the hearing.