When Maryland lawmakers debated legalizing online casinos earlier this year, concerns over job losses stalled legislation.
Despite representatives from four of Maryland’s six casinos speaking in favor of iGaming, employees from the other two won over enough lawmakers to keep the issue on the back burner.
They claimed iGaming would cannibalize the industry, resulting in pink slips for employees at retail casinos.
A gaming attorney in New York, however, may have a solution to the dilemma if lawmakers decide to consider Maryland online casinos when they can bring up the issue again in 2026.
A simple solution to a complicated issue?
Daniel Wallach, a gaming law and sports betting attorney, recently wrote an opinion piece for Forbes. Wallach specifically examined the online casino debate in New York, which is the same one that just happened in Maryland.
In New York, casino employees and their unions have argued that iGaming would result in a wave of unemployment. Even though studies have shown the opposite, Wallach has presented a way for lawmakers to address those concerns.
He proposed that if casinos want to secure an iGaming license, they must ensure that no jobs will be lost. These employment guarantees would be considered each time a casino attempts to renew its online license.
The solution is simple, Wallach wrote.
“Guarantee the jobs.”
To secure and keep an iGaming license, a casino would need to maintain its current employment levels, Wallach wrote.
“For every $20 million of annual casino revenue attributable to iGaming, the casino licensee must increase both the number of union jobs and pay by a specific percentage.”
Wallach wrote that in strong union states like Maryland, any model iGaming legislation “should be crafted around securing the support of the relevant gaming and hotel workers union.”
Why online casino legislation failed in Maryland
During the online casino debate in the last legislative session, representatives from two Maryland casinos highlighted a study by The Innovation Group. It projected that Maryland casinos would lose as much as 10% of their revenue if the state were to legalize iGaming.
Other studies have disproved that theory. For instance, a study conducted by iDevelopment and Economic Association and Eilers & Krejcik Gaming found that online casinos actually boost revenue at their land-based counterparts.
Nevertheless, job security concerns worried enough lawmakers that online casino legislation failed to gain any traction, said iGaming proponent state Sen. Ron Watson.
“Material was put under all the legislators’ doors each and every day leading up to the vote to ‘not take our jobs.’ It was on television. They had a campaign, and they were willing to put money behind this campaign to fight this initiative.”
Who spoke out against Maryland online casinos?
During the last session, representatives from Ocean Downs Casino & Racetrack and Live! Casino spoke out against online casinos.
They told members of the House Ways and Means Committee that legalizing online casinos would result in their businesses being cannibalized.
Ocean Downs General Manager Bobbi Jones claimed that iGaming “will cause a loss of good-paying jobs year-round, health benefits, and retirement benefits.”
Executive Vice President and General Council of The Cordish Companies Mark Stewart represented Live! Casino Maryland. He predicted that “thousands” of people would lose their jobs.
“If iGaming passes, we’re a gaming company, we’ll do well financially. But despite our potential financial gain, we are asking you not to do iGaming, and that should speak volumes.”
Employees of the casinos also spoke out. Both a dealer and a server said less foot traffic would result in their jobs being cut. Specifically in the case of the server, she stated that a good chunk of her income comes from tips. Less people in the casinos would mean fewer tips.
Could job guarantees silence cannibalization concerns?
Job guarantees might be how proponents approach the iGaming issue next year.
As Watson noted, employee concerns seemed to outweigh the positive sentiments most casinos had on expanding to an online industry. Maryland lawmakers might find more backing by introducing legislation that directly addresses the issue.
Prioritizing job security is probably the best way to move forward on legalizing online casinos in Maryland.
