The Maryland Lottery and Gaming Control Agency (MLGCA) has raised alarms about illegal online gambling as the state considers regulating online casinos.
In a letter to the House Ways and Means Committee, MLGCA Director John Martin highlighted the growing issue of “bad actors” offering unregulated gambling sites that mimic legal, regulated platforms.
The letter, obtained by SBC Americas, followed a January 15 briefing, where lawmakers discussed how to tackle the black market for online gambling. Martin noted that many Maryland residents are unknowingly using illegal offshore websites.
About 892 illegal online gaming operators were active in the U.S. in the first half of 2024, with 651 affiliates promoting these platforms, as per a report by Yield Sec, cited in the letter.
Additionally, the American Gaming Association (AGA) estimates that illegal gambling costs states $13.3 billion in lost tax revenue annually. In Maryland, a 2023 report found the state lost $197 million in tax revenue due to illegal online casino gaming.
Martin also pointed out that neighboring states like Pennsylvania and West Virginia, which have legalized online casinos, are seeing impressive growth in both gaming activity and tax revenues.
In the meantime, the MLGCA has taken action by working with the state Attorney General’s Office to send cease-and-desist letters to 11 illegal operators. However, several operators have refused to comply, claiming they are operating legally.
Amid these challenges, the MLGCA pointed out that a regulated online gaming market can help mitigate revenue losses by bringing gambling activities under state oversight.
“The Agency has already been contacted about a potential bill to further study illegal gaming and we look forward to working with the Ways and Means Committee to divert funds from illegal operators to legal and regulated gaming opportunities in Maryland,” the MLGCA said.
With lawmakers already pushing bills for legal online gaming, including Delegate Atterbeary’s House Bill 17 and Senator Watson’s Senate Bill 340, the MLGCA believes that regulation could help combat illegal gambling and boost state tax revenue.
Original article: https://www.yogonet.com/international/news/2025/02/04/94062-maryland-lottery-officials-warn-of-unregulated-online-gambling-rise-amid-legalization-push
