Maryland has a rich gambling history and a long-established horse racing tradition, and it is home to legendary thoroughbred racetracks such as Laurel Park and Pimlico Race Course. However, racetracks are not the only locations in Maryland where gambling takes place. The Old Line State has six commercial casinos, the last of which, MGM National Harbor, began operating at the end of 2016.
The other five brick-and-mortar gaming venues are located in Flintstone, Perryville, Baltimore, Hanover, and Berlin. The venues provide jobs for more than 15,300 Marylanders and reported $1.93 billion in gross gaming revenue in 2021. Numerous gambling options are legally available to residents, including slots, video poker, and tournament poker. The state legislature legalized table games in 2012, allowing wagers on casino classics such as roulette, craps, baccarat, blackjack, and banked stud poker.
Maryland was one of the first states to start regulating daily fantasy sports (DFS) in 2017. While online casinos remain illegal in Maryland for the time being, the state made significant progress toward interactive gambling expansion in 2021. Retail sports betting launched in December 2021, and the first mobile sportsbooks are expected to go live sometime in 2022.
Gambling Laws in Maryland
Marylanders can legally participate in many forms of gambling, all regulated at the state level under the Maryland Code. This compilation lists all statutes currently in effect and organizes them by subject. State-sanctioned lotteries launched in 1973 under the oversight of the Maryland Lottery and Gaming Control Agency (MLGCA).
Slot machines, commonly known as video lottery terminals (VLT), became legal in 2008. Lawmakers amended the statute again in 2012 to allow live table games. Businesses that want to offer legal gambling must first obtain licenses from the state regulatory authorities. Providing unauthorized gambling is an offense under Maryland Criminal Law.
Maryland Criminal Law
Maryland Code §9-1A-01
Maryland Code §9-1A-05
Maryland Criminal Law
The Maryland Criminal Law §12-101 provides a broad definition of gambling devices. The category covers gaming tables for chance-based games where players risk real money or anything else of value, but it excludes billiard games. Bingo, chance books, paddle-wheel games, and wheels of fortune are also classified as gambling devices under the law.
Carnivals, raffles, bazaars, and all other enterprises that operate such devices are considered gaming events, meaning individuals and businesses can organize them only with authorization. According to Title 12, Subtitle 1, §12-102, keeping, renting, or using buildings and sailing vessels to run illegal bookmaking or gambling is prohibited in Baltimore City.
Violators of this misdemeanor can face fines of up to $5,000 and/or six months in jail. Playing or betting on illegal gaming devices is a civil offense and carries fines ranging from $500 to $1,000. Individuals who fail to pay within thirty days of being cited may receive the maximum penalty.
Maryland Code §9-1A-01
Electronic table games and video lottery terminals (VLTs) are legal in the Old Line State and are regulated under Section §9-1A-01 of the Maryland Code. Marylanders approved the terminals in a 2008 constitutional referendum, which capped their number at 15,000 across five locations.
The machines are also covered in Article XIX of the Maryland Constitution. Taxes generated from the terminals primarily fund public education, including schools and pre-kindergarten programs. The VLT locations were initially limited to Baltimore City and the four counties of Anne Arundel, Worcester, Allegany, and Cecil.
Perryville’s Hollywood Casino in Cecil County became the first venue to offer this form of electronic gaming in 2010. It was soon followed by Ocean Downs, which opened the next year with about 750 machines. The Maryland Lottery Commission was originally the sole owner of the terminals, purchasing them and then leasing them to licensees. The Commission later concluded that this approach was too expensive and transferred ownership to the gaming facilities in 2018.
Maryland Code §9-1A-05
Another referendum took place on November 6, 2012, when Marylanders voted in favor of a sixth gaming facility in Prince George’s County. Voters also approved live gaming tables at commercial casinos and round-the-clock operations at all licensed locations.
Section §9-1A-05 of the Maryland Code created the Video Lottery Facility Location Commission, capping the number of licenses at six. Licensees may offer a wide range of classic table games, including roulette, blackjack, poker, mini-baccarat, sic bo, craps, pai gow, and more. In 2016, MGM National Harbor became the sixth and final commercial gaming venue in the state.
The total number of video lottery terminals authorized in Maryland rose from 15,000 to 16,500. A single gaming facility may operate no more than 4,750 terminals on its premises, except for the venue in Allegany County, which is allowed up to 1,500 terminals.
Hanover’s Maryland Live! Casino is the largest gaming venue in the state, offering more than 4,000 slot machines and over 200 live gaming tables. As a rule, gaming facilities cannot be located within or near residential areas.
Gambling License Types and Requirements
The six commercial gaming facilities in Maryland have all obtained operator licenses from the local regulatory agency. Permits are issued through a competitive bidding process. Licenses are non-transferable and apply only to the locations for which they are issued.
Operator Licenses
Supplier Licenses
Employee Licenses
Operator Licenses
Maryland senators and members of the House of Delegates may not own gaming facilities or apply for operator licenses. Approved operators must pay $3 million in licensing fees for every 500 video lottery terminals they run. These licenses are initially valid for 15 years.
At the end of that period, operators may resubmit their documentation to renew the permits for an additional 10 years. Under §9-1A-23 (a), licensed facilities may operate 24/7. The average theoretical return of the video lottery terminals must be at least 87%.
Supplier Licenses
Companies or individuals that distribute, manufacture, or sell gaming machines or equipment to authorized operators must obtain supplier licenses. Interested suppliers must complete the appropriate application form, which includes corporate and partnership information. They must also disclose any past criminal or insolvency history.
In addition to the application form, suppliers must submit supporting documents, including financial statements and tax returns for the previous five years. The Maryland regulator may waive some or all licensing requirements for suppliers that already hold valid permits in other states, provided the regulator determines that the other jurisdiction’s requirements are comparable to its own.
Manufacturers of gaming machines and equipment must pay a $10,000 fee when submitting their applications. Initial manufacturer licenses cost $5,000 and require renewal every five years. Companies that only distribute or resell gaming equipment are subject to application fees of $10,000, while the initial permit itself costs $1,000. Distributor licenses expire after five years, and renewal again costs $1,000.
Employee Licenses
These licenses are required for employees who are directly involved in gaming operations at licensed facilities. Under §9-1A-14, such workers must demonstrate their integrity, expertise, and fitness. Applicants convicted of gambling-related crimes in the United States or elsewhere within the past seven years will be rejected.
All key employees of gambling operators, including those who service video lottery terminals, must apply for principal employee licenses. These licenses are valid for five years and cost $2,500 to apply. There is also a $2,000 fee for the background investigation of key employees, plus a $37.25 fee for fingerprinting. The license issuance itself costs $750.
Taxes on Gambling Operators in Maryland
One thing that sets Maryland apart from other states with regulated gambling is that tax rates vary for each licensed casino. The taxes imposed on video lottery terminals and table games also differ. The commercial operators can retain the following percentages of their VLT revenue:
The profits from table games are taxed at 20%. The Education Trust Fund receives 15% of the tax money under §9-1A-27(d) of the Maryland Code, and the counties hosting the gaming facilities receive 5% of the proceeds from table games. The taxes collected from licensed slot machines are allocated as follows:
- 46% – Horseshoe Casino Baltimore (over 2,200 slots and 150 video poker machines)
- 44% – MGM National Harbor in Oxon Hill, Prince George’s County (over 2,200 slots)
- 49% – Maryland Live! Casino in Hanover, Anne Arundel County (over 4,000 slots)
- 39% – Hollywood Casino in Perryville, Cecil County (over 800 slot machines)
- 60% – Rocky Gap Casino Resort in Flintstone, Allegany County (over 600 slots)
- 53% – Ocean Downs Casino in Berlin, Worcester County (over 850 slots)
| Allocation of Tax Money Collected from Licensed VLTs |
| Racetrack Renovation and Maintenance |
1.00% |
| Maryland Lottery and Gaming Control Agency |
1.00% |
| Small-scale local businesses owned by women or minorities |
1.50% |
| Host Counties |
5.50% |
| Horse Race Purses |
6.00% |
| Maryland Education Trust Fund |
32.75% to 47.50% |
Maryland casino operators can use up to 20% of their overall VLT earnings from the previous fiscal year for free bets and other promotions. Gamblers should keep in mind that withholding taxes are levied on their winnings, but only when these exceed $5,000. In that case, the casinos must withhold 8.75% from residents of the state and 7.5% from non-resident players.
Responsible Gambling Requirements in Maryland
The state regulator encourages Marylanders to make healthy choices when they gamble. It tackles gambling-related harm through awareness campaigns, research, and employee training. The Maryland Code §9-1A-33 established the Problem Gambling Fund within the Department of Health.
Problem Gambling Fund
Self-Exclusion Database
Gambling Advertising Restrictions
Problem Gambling Fund
All licensed VLT operators must pay $425 per gaming machine each year. The regulator may also impose a $500 annual fee on every gaming table operated by licensees. All fees are deposited into the Problem Gambling Fund and support addiction treatment, prevention, and recovery.
If any funds remain, the Department of Health may use them for other addiction services. A dedicated hotline for compulsive gamblers is free, fully confidential, and available around the clock.
Free counseling is available to all Marylanders, regardless of financial situation or insurance coverage. Information about these services must be prominently displayed at all casino entrances. Licensed operators may not entice gamblers with free alcoholic beverages. All six casinos work diligently to prevent underage gambling. Individuals under 21 cannot access the gaming areas.
Self-Exclusion Database
The Maryland Lottery and Gaming Control Commission (MLGCC) operates a self-exclusion program for the six commercial casinos. Excluded individuals remain fully confidential, as only the gambling operators and the MLGCC can access the database. The program applies solely to local casinos, although operators may, at their discretion, ban excluded residents from out-of-state venues. MGM Resorts (MGM National Harbor), Penn National (Hollywood Casino), Cordish Company (Live! Casino), and Caesars Entertainment (Horseshoe Baltimore) all honor self-exclusion beyond the Old Line State.
Excluded gamblers who enter any of the six casinos risk arrest for trespassing. Residents may exclude themselves for two or more years. They can request reinstatement later, but the MLGCC makes the final decision. Friends and relatives cannot add problem gamblers without their consent. Players must submit applications in person at the state lottery headquarters or at one of the casinos.
Gambling Advertising Restrictions
Licensed gambling operators in Maryland may not advertise their services in an exploitative manner. Deceptive or inaccurate marketing of gambling products violates state law, as does intentionally targeting underage or self-excluded individuals. All marketing content, whether on billboards, in print, or on radio and television, must include a problem-gambling assistance message approved by the regulator.
Online Gambling in Maryland
Maryland’s gambling legislation disallows nearly all forms of interactive gambling, which means no online slots, table games, or poker for local internet users. At the time of publication, only daily fantasy sports (DFS) are legal and regulated in the Old Line State. Daily fantasy sports are described in §9-1D-01 of the Maryland Code as contests in which the participating players “own, manage or coach imaginary teams”.
Participants should know what prizes they are competing for beforehand. Winning outcomes should reflect the players’ relative skill and must depend on statistics generated by real-life teams from professional sports leagues.
Only residents who are at least 18 years old can participate in the daily fantasy contests. Skilled players should be labeled as “highly experienced”. DFS operators cannot offer contests that involve collegiate teams. Players can deposit no more than $1,000 per month, although they can request a temporary increase to this limit.
Sports Betting Regulation in Maryland
Maryland was a late arrival to the US sports betting scene, legalizing the activity in May 2021. State residents had approved the measure the previous November, with about 67% voting in favor. Less than six months later, Governor Lawrence Hogan signed House Bill 940, sponsored by House Delegate Adrienne Jones.
Retail Sportsbooks Partners
License Fees, Taxes, and Other Costs
Allowed Bets Types
Retail Sportsbooks Partners
The legislation authorizes remote and in-person sports betting at licensed retail locations. Maryland Live! Casino (FanDuel), Ocean Downs (TwinSpires), Hollywood Casino (Barstool), Horseshoe Baltimore (Caesars Entertainment), and MGM National Harbor (BetMGM) all operate licensed retail sportsbooks. The first mobile apps are expected to launch sometime in 2022.
License Fees, Taxes, and Other Costs
The first retail sportsbooks began accepting wagers in December 2021. Land-based facilities may also apply for mobile wagering licenses. Fees range from $50,000 to $2 million, depending on the permit class. Up to sixty remote betting licenses are available at $500,000 each.
These permits expire after five years. Renewal costs equal 1% of the average annual revenue the operator generated during the preceding three years. Sports wagering revenue is taxed at 15%, but licensees may deduct payouts to winning bettors and the value of promotional free bets. Professional sports leagues do not receive integrity fees.
Allowed Bets Types
Marylanders can choose from a wide variety of bet types, including parlays, straight bets, teasers, totals, and props. In-play and exchange betting are also available. However, licensed sportsbooks may not accept wagers on sporting events that involve high-school athletes.
Maryland Gambling Regulators
The Maryland Lottery and Gaming Control Commission (MLGCC) is responsible for regulating commercial gaming facilities as part of the Maryland Lottery and Gaming Control Agency (MLGCA). The MLGCC comprises a board of seven members tasked with the regulatory oversight of gaming tables and slot machines in the Old Line State. The MLGCC also acts as an advisory board to the MLGCA.
The MLGCC assesses and approves the licenses granted to casino operators and gaming equipment suppliers. As of 2021, the regulatory entity has the added mandate to oversee the regulation of sports betting and daily fantasy sports under HB940 and §9-1D-01. The seven members of the MLGCC serve five-year terms and are selected by the Maryland governor with the Senate’s approval.
One of the seven commissioners is appointed annually to act as the chairperson of the regulatory agency. Each commissioner must be at least 25 years old and a US citizen who has resided in the country for five or more years. Up to five MLGCC members can share the same political party affiliation, and at least one member must be a resident of a county that hosts a commercial gaming facility.
Conclusion
Most forms of gambling are already legal in Maryland, with six commercial venues that cater to gaming fans with regulated table games and slot machines. The most recent development in the local gambling industry is the legalization of retail and mobile sports wagering in 2021. We see this as a positive sign, and remote casino-style gaming could also come to Maryland in the next few years.
