A recent report by the Sage Policy Group highlights significant economic risks that could arise from the legalization of igaming in Maryland.
The study was commissioned by the Anne Arundel County Chamber of Commerce to assess the potential effect of legal igaming in Maryland on the state’s businesses and employment. Anirban Basu, chairman and CEO of the Sage Policy Group and former chair of the Maryland Economic Development Commission, emphasized the vital role of existing casinos in supporting local employment and contributing to programs like public education.
“Whereas gaming at brick-and-mortar casinos supports jobs for local residents operating as managers, card dealers, technicians servicing machines, chefs and other food service employees, among others, jobs supported by igaming would primarily be performed beyond Maryland’s boundaries. Accordingly, Maryland’s six casinos, along with other local enterprises, would support fewer jobs,” Basu said. “Same-store [brick-and-mortar] casino revenues from in-person gaming declined 8 percent between 2019 and 2022 in states that legalized igaming while increasing 2 percent in states that did not. This almost certainly understates the long-term decline in brick-and-mortar gaming revenue that would occur in Maryland. The presence of igaming would not only lower the trajectory of near-term revenues but also render it less likely that existing enterprises would expand their respective footprints.”
The report also discusses the broader effect on Maryland’s leisure and hospitality sector, which is still recovering from the pandemic. It highlights the potential drop in job opportunities for non-college-educated workers earning sustainable wages in the casino industry. Additionally, the study refers to possible adverse effects on surrounding entertainment and shopping districts, which benefit from the foot traffic generated by nearby casinos.
The report also raises concerns about the increase in problem gambling, referring to states where igaming is legal, highlighting the challenges of addressing addiction issues.
“1gaming presents a mechanism by which gambling becomes excessively accessible for those who find such activity irresistible to the point of generating self-harm, including the youngest and most susceptible Marylanders,” it said.
Mark Kleinschmidt, CEO of the Anne Arundel County Chamber of Commerce, said in a press release, “we have worked with Sage Policy Group in the past, and they have a superlative reputation for researching economic matters that have a great potential impact on the state. Their collaboration on researching this pressing matter brings much-needed insight into the potential impacts of igaming in Anne Arundel County and throughout the state of Maryland.”
