Maryland SB 885 Seeks to Legalize Online Casinos

Written by: Jonathan Rodriguez
Published: Mon Feb 16, 2026, 8:00 am ET
Read Time: 3 minutes

industry
Maryland lawmakers have introduced Senate Bill 885, a sweeping measure designed to legalize full-scale online casino gaming throughout the state.
The proposal arrives as more states expand digital wagering and as competition among US online casinos continues to intensify. At the same time, the debate has reignited broader discussions about the future of Maryland gambling.
Supporters say SB 885 would modernize the state's gaming industry and unlock a new revenue stream. Critics, however, caution that online expansion could impact brick-and-mortar casino performance.
The bill now heads to committee hearings, where lawmakers will debate its structure and fiscal impact.
What is SB 885 All About?
SB 885 would authorize regulated online casino gaming under oversight from the Maryland State Lottery and Gaming Control Commission. The measure allows licensed operators to offer online slot games, table games, and online bingo to adults aged 21 and older.
Importantly, the bill includes a voter referendum requirement. Because Maryland's constitution requires voter approval for expanded gambling, residents would decide the issue on the November 2026 ballot. If approved, regulators would begin issuing licenses shortly thereafter.
The proposal outlines licensing fees, tax structures, and regulatory safeguards. Revenue generated from online casino operations would support education funding, local governments, and responsible gambling programs.
Additionally, the bill allows Maryland to enter multistate agreements for online poker liquidity. This provision would let operators combine player pools with other regulated states.
The "Live Dealer" Mandate
Notably, SB 885 includes a live dealer studio requirement designed to create in-state jobs. The bill mandates that each licensee invest at least $5 million into a Maryland-based live dealer facility. As a result, operators must establish or partner with a physical studio located within the state.
Lawmakers structured this provision to ensure digital gaming expansion produces tangible economic benefits. Live dealer platforms require trained dealers, technical staff, and production teams.
Therefore, even though players wager remotely, the games would stream directly from Maryland. Supporters argue this mandate strengthens the Maryland gambling sector while attracting major US online casinos seeking market entry.
Previous Attempts to Legalize Online Casino Gambling
Maryland lawmakers have attempted to legalize online casino gaming several times in recent years. In prior sessions, comprehensive iGaming bills advanced through committee but stalled before final passage. Concerns from land-based casino stakeholders often slowed momentum.
Earlier proposals also required voter referendums, similar to SB 885. However, lawmakers struggled to align on tax rates and license structures. As a result, Maryland remains without regulated online casino gaming, despite authorizing mobile sports betting in recent years.
Now, supporters believe the timing may be different. Neighboring states continue to explore digital expansion, increasing competitive pressure.
If voters approve the referendum, Maryland could launch regulated online casinos as early as 2027. Such a move would mark a significant shift in the state's evolving gambling landscape.
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