On Monday we learned of an important decision on gambling in our country.
New Jersey had brought a case to the U.S. Supreme Court regarding the Professional and Amateur Sports Protection Act, a 1992 law barring states — except those with pre-existing gambling laws — from allowing gambling on sporting events. In essence, this meant that Nevada was the only state allowed to offer betting on single-game sporting events.
Having passed enabling legislation to allow sports gambling earlier in the decade, New Jersey has been in court since August 2012 trying to legitimize its law and get the federal law overturned. The Supreme Court decision returns federalism to the sports gambling landscape, reserving to the states the power to determine how to regulate gambling within their boundaries.
But if you think sports betting will be coming to Maryland anytime soon, think again.
The modern era of gambling in Maryland has been a series of fits and starts, poor decisions and political machinations by the General Assembly to micromanage even casino locations.
After opposing Republican Gov. Bob Ehrlich’s attempts to introduce slot machines for four years, Maryland Democrats finally got behind the establishment of casinos in 2007. Well after dark during a special session, the General Assembly passed legislation authorizing the establishment of “video lottery terminals.”
But the legislature lacked the political courage to just pass the law. Instead, it forced the voters to weigh in on the issue by authorizing slots through a constitutional amendment that micromanaged the process, specifying geographic locations where slots licenses could be awarded. After a spirited and expensive campaign, the voters adopted the plan.
But Maryland was already behind the times when it came to gambling. By the time the conversation about slot machines in Maryland began, Delaware and West Virginia already had well-established gaming operations less than two hours from Baltimore and close to other customers from Maryland. Pennsylvania followed with slots parlors in 2006.
Many suggested Maryland legalize both slots parlors and table games, but the General Assembly refused. Neighboring states immediately moved to allow table games in their casinos, and it took until 2012 for the General Assembly to send legislation to the voters to legalize table games here.
Legislative leaders in Maryland have known for some time that this case on sports betting was heading to the Supreme Court. But no legislation was passed during this year’s General Assembly session to address the issue. The state Senate and the House of Delegates couldn’t agree on matching language in order to send a constitutional amendment to the voters.
So voters won’t have the opportunity to adopt any amendment on sports betting until November 2020. And Maryland casinos would not be able to offer sports betting until 2021 at the earliest. At the same time, states in our region — including Delaware, New Jersey, Pennsylvania and West Virginia — are moving at full speed toward legalizing sports betting.
Maryland has to decide how serious it is going to be about the gambling industry. Does it exist here solely to provide a source of revenue to state government? Or does Maryland want to have a gambling industry that creates jobs, economic development and opportunities for employees and consumers alike?
If Maryland is going to be a serious player in the gambling industry, the General Assembly should come back in special session and take the shackles off the industry by repealing the unnecessary geographic location requirements, lowering taxes on gaming operators and adopting legislation paving the way for sports betting at casinos, racetracks and off-track betting locations.
If Maryland wants to enjoy the economic benefits of this new reality, we cannot wait for our neighbors to lead, as we have on the gaming issue for decades.
