Why Maryland’s Online Casino Bill Keeps Stalling While Indiana Already Cashed In

Why Maryland’s Online Casino Bill Keeps Stalling While Indiana Already Cashed In

Photo by mikemac29 with Flickr Creative Commons License

Despite the objections of Republican lawmakers, two Circuit Court judges, and two justices of the Maryland Supreme Court, Maryland’s legislative leaders bulldozed a constitutional amendment onto the November ballot that will give them a free hand to redraw congressional districts lines and potentially eliminate the state’s lone GOP congressman. Just as the state constitution says voters must decide on changes to the constitution, voters must also decide by referendum on each and every expansion of gambling

Maryland’s constitution requires certain kinds of legislative expansion, gambling included, to clear a statewide voter referendum before it becomes law. Not just a committee vote. Not just a legislative majority. Not just a governor’s signature. A ballot question, same mechanism, same deadlines, same vulnerability to a legal challenge from anyone who thinks the wording is off or the timeline was missed. Sen. Ron Watson’s iGaming bill had to survive that gauntlet before a single Marylander can legally spin a slot from their couch. It hasn’t gotten close.

While the Maryland Lottery and Gaming Control Commission sits on a licensing framework, it can’t change the basic rules of the game until voters approve.  Indiana passed a regulatory structure that lets residents access working platforms today, no referendum required, because Indiana’s constitution doesn’t route gambling expansion through the ballot box the way Maryland’s does. Hoosiers comparing what their state built can pull up Indiana online casinos right now and see a functioning market. Marylanders comparing what their state promised are still reading committee minutes from Crossover Day.

It’s not that lawmakers don’t want the tax revenue. Watson has been explicit that most license fee proceeds, after agency reimbursement and a 1% carve-out for the Problem Gambling Fund, would flow straight into the Blueprint for Maryland’s Future Fund. That’s real money for a program that is, by its own advocates’ admission, a fiscal headache every single budget cycle.

But wanting the money and clearing the referendum bar are two different problems. Maryland’s constitutional design treats gambling expansion with the same suspicion it treats redistricting amendments. Big structural changes go to voters. Voters only get a say once every two years in a general election cycle. Miss the window, and you wait.

Indiana didn’t have to ask permission twice

Indiana’s path looked nothing like this. The state’s General Assembly authorized its regulatory framework through ordinary legislative process, no statewide referendum standing between committee approval and a working license. That’s the structural gap, plain and simple. It’s not that Indiana lawmakers moved faster or cared more. Their constitution just doesn’t make them clear the same hurdle.

That said, Indiana’s own path to full iGaming hasn’t been frictionless either. Deadspin covered Indiana’s stalled attempt at broader online casino legalization back in 2025, noting the state was unlikely to pass comprehensive iGaming that year despite momentum in neighboring markets. Nothing about gambling expansion is automatic anywhere. Indiana just wasn’t fighting its own constitution on top of everything else.

The American Gaming Association’s State of the States 2026 report puts real numbers on what states with working iGaming frameworks are capturing versus states still stuck at the sportsbook-only stage. Maryland’s sports betting arm alone has pulled in roughly $140 million in tax revenue since its December 2021 launch, according to figures cited during SB 885 hearings. That’s the sports betting slice. The casino slice, the one that requires a referendum Maryland hasn’t gotten to the ballot, sits at zero.

Zero isn’t a policy failure exactly. It’s a structural one. But the effect on the state budget is identical either way.

What actually kills a Maryland gambling bill

Three things, repeatedly:

The referendum requirement itself, which pushes any vote to a general election and away from a simple legislative majority.

Ballot language fights, where opponents challenge wording as confusing or misleading and a judge has to sort it out under time pressure.

Missed procedural deadlines, which is precisely what Republicans alleged in their redistricting lawsuit and which Crossover Day repeatedly does to iGaming bills that run out of legislative runway before a floor vote.

None of these are secret. Eye On Annapolis flagged the referendum requirement directly back in February, tying it straight to the Blueprint funding question. Casino.org’s national coverage noted Watson withdrew a related bill, SB 761, after the Senate Budget and Taxation Committee simply canceled a scheduled hearing. You can’t out-argue a canceled hearing. You can only wait for next session and try again.

Why this matters beyond the casino industry

Maryland isn’t choosing gridlock. It built gridlock into the constitution on purpose, decades ago, for reasons that had nothing to do with online blackjack. The tradeoff is that any expansion this big has to survive an election cycle, a legal challenge window, and a ballot printing deadline all at once. Redistricting just proved how narrow that path is. IGaming has been proving it for three years running.

Frequently Asked Questions

Why does Maryland need a referendum for online casinos but Indiana doesn’t? Maryland’s constitution requires voter approval for certain gambling expansions, treating it similarly to other major structural changes. Indiana’s constitution doesn’t impose that same requirement, letting its legislature authorize a regulatory framework through ordinary lawmaking without sending the question to voters first.

What happened to Senate Bill 885? SB 885, sponsored by Sen. Ron Watson, aimed to let the Maryland Lottery and Gaming Control Commission award iGaming licenses to video lottery operators. It failed to advance before Crossover Day in the 2026 session, marking its second consecutive stall.

Is Maryland sports betting affected by this same referendum rule? No. Maryland’s sports betting market launched in December 2021 through separate legislative authorization and has generated roughly $140 million in tax revenue since. Online casino gaming falls under a different constitutional requirement that sports betting didn’t trigger.

Where can Maryland residents legally play online casino games right now? Nowhere within state lines, since no license has been issued under a bill that hasn’t passed. Residents sometimes look at neighboring or comparison states with working frameworks to understand what a regulated Maryland market might eventually look like once SB 885 or a successor bill clears the referendum process.

Gambling involves risk. Please play responsibly and only wager what you can afford to lose. If you feel gambling is becoming a problem, visit BeGambleAware.org or call 1-800-GAMBLER.

Maryland’s next shot at iGaming will come next year with a new legislature and a senator or delegate willing to sponsor the move. 

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