[{"_1":2,"_88":-5,"_89":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6387602,"mediaKeyId","2116219-92705caf1343854e9a7c548836646c21","parentId",2116219,"title","Maryland regulators describe offshore 'illegal' online gaming as persistent challenge; cease-and-desist letters ineffective so far","audioSeconds",2093,"startMs",1214000,"endMs",3307000,"viewUrl","/Search/View?dp=1&key=2116219-92705caf1343854e9a7c548836646c21&start=1214&end=3307","thumbnailUrl","https://assets.pipeline.soar.com/2116219-92705caf1343854e9a7c548836646c21/thumbnail_1214000.jpg","articleUrl","/articles/6387602/Maryland/Maryland-regulators-describe-offshore-illegal-online-gaming-as-persistent-challenge-cease-and-desist-letters-ineffective-so-far","mediaUrl","https://secure.pipeline.soar.com/6387602-fd8c9fa3aaa56439a0716388c286902d/orig.mp4?Expires=1771148523&Signature=RkNf8pPAmkDMlotr3DMWtcw8tPIOYgisC1HuI3Xvtxf29jgNTn0TeuyMpx9wf5yGJ8MTR6EAkE4VUYUlAtZ1Csn1zIySKz~oWnh2~pxmte9Fip-6sUHSfizlSak172lDov0AqfNvBQbwhb5dF-BFLVEo3Jk-2Bl6RNfLTN-tU9YKAD~8acQmjUTV4ZZEYF3V16ntTypR9gUP146fYfuSirg-qAFPLB~LS0IsV9vJn5V2iBNnqfFAX7P5EDnKBipzmfhQg4kF283qx4oSc7F0pWOxKi63PLZr8fr4PEopyLGjC1LI2tSbTTs8nckWkZ~CTX5q1efDGn0qeggYk93syQ__&Key-Pair-Id=KUT5TJCACFTXG","author","Maryland General Assembly - Ways and Means","date","2025-01-15T00:00:00Z","article","John Martin, director of the Maryland Lottery and Gaming Control Agency, told the House Ways and Means Committee on Jan. 15 that illegal online gaming operators—primarily offshore sites offering casino-style games and sports wagering—remain an unresolved enforcement problem for the state.

“There's dozens, if not 100, of these entities across the country,” Martin said. “It's almost like, and I apologize for using the term, but the whack a mole concept is something that we use in the industry.” He said the agency had sent 11 cease-and-desist letters and that six recipients had responded to assert their businesses were compliant; none had agreed to block Maryland access.

Lawmakers pressed the agency on where those operators are located and how enforcement proceeds. Martin said most operators are offshore, which complicates service of legal process and prosecution. He described multi-state coordination with about a dozen peer regulators, and said the agency works with the attorney general’s office and other states on iterative legal responses.

Committee members raised the possibility that significant tax increases or regulatory changes could push customers toward illegal operators. Chair Atterberry noted that the governor’s proposed budget included a recommendation to raise the mobile sports-wagering tax from 15% to 30% and a proposed increase in table-game tax rates; Martin said his office would review the governor’s proposal and assess impacts on operators, minority- and women-owned businesses and the legal market.

Lawmakers and the director discussed tools beyond cease-and-desist letters. Martin said payment processors are one enforcement leverage point—credit-card companies and other processors can be asked to identify or block transactions tied to illegal sites—and that some jurisdictions (Michigan was cited by the agency) have taken a stricter approach. He told the committee that many illegal sites accept credit-card payments and that sophisticated cryptocurrency or darknet mechanics are not universally required for these operations.

Delegates asked whether state law provides the agency or the attorney general adequate enforcement tools. Martin said he was not optimistic that additional state-only tools would fully solve the problem because many operators are offshore, and he said he expects some relief would be most effective at the federal level.

Members also raised sweepstakes-style sites and daily-fantasy-sports operators; Martin said sweepstakes are unregulated and can function as a workaround that converts in-game “coins” into monetary value, and that the agency continues to evaluate legal and policy responses.

Lawmakers requested further analysis from the agency about the proposed tax changes and the trafficking of customer payments.","mediaType","Video","parentTitle","W&M Committee Session, 1/15/2025 #1","oneSentenceSummary","Agency officials told the House Ways and Means Committee that offshore operators offering casino-style games and sports wagering to Maryland residents continue to evade state enforcement; the agency has issued 11 cease-and-desist letters, received six responses and none have agreed to block access.","taxTitle","Ways and Means Committee, HOUSE OF REPRESENTATIVES, Committees, Legislative, Maryland","taxId",15064,"location","Maryland","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6387606,"Maryland Lottery reports $2.7 billion in fiscal 2024 sales; agency outlines major contracts and responsible-gaming programs",1582,166000,1748000,"/Search/View?dp=1&key=2116219-92705caf1343854e9a7c548836646c21&start=166&end=1748","https://assets.pipeline.soar.com/2116219-92705caf1343854e9a7c548836646c21/thumbnail_166000.jpg","/articles/6387606/Maryland/Maryland-Lottery-reports-27-billion-in-fiscal-2024-sales-agency-outlines-major-contracts-and-responsible-gaming-programs","https://secure.pipeline.soar.com/6387606-e0d84ef1a1eedba5507554ff34fb4570/orig.mp4?Expires=1771148523&Signature=S1GvWxPcsAi9Kw7-aPyAKx1ZizNeMy2bRGDY5I2szqLkXKw0j0ppvUX1rDARMxvtikIHFe5IwnPQbE3AjqcLCCeBT1a-5MwtqE6YCa1a408W4gqJt-oauEW-3iqDvHEIE81xQ~lfFHPgWSxR6WZEi7vmeqHP3syhlWNFaqohNz121klI5Bkuqn1MWrjED2mRQGvGt0alMHOiQ0trbUFWE5e0PltzYHWm1jJ~~NXaONOAqyJ59qtnIRwjfHyVVd-8iOimiFC-GAkkkhsdt8F4qOiMndCMKwc9vusfE4GTIlV1rjlChiMID4T9wEM0noAl1TYvxe8Ibfh~sq6Zj~7PNg__&Key-Pair-Id=KUT5TJCACFTXG","John Martin, director of the Maryland Lottery and Gaming Control Agency, told the House Ways and Means Committee on Jan. 15 that the agency recorded more than $2,700,000,000 in sales in fiscal 2024 and nearly $700,000,000 in profit.

Martin said lottery product categories include daily draw games (Pick 3, Pick 4, Pick 5), monitor games such as keno, jackpot games (Mega Millions and Powerball) and scratch-off tickets, and described the newer “fast play” product introduced in 2020. “We had over $2,700,000,000 in sales on fiscal 24, which ended obviously June 30th, nearly $700,000,000 in profit,” Martin said.

The agency told lawmakers that the largest single beneficiary of casino revenue is the Education Trust Fund, receiving roughly $600,000,000 in fiscal 2024. Martin said local jurisdiction aid where casinos are located receives about 5% of casino contributions; the horse racing industry receives slightly less than 5%; the small minority- and women-owned business fund about 1%; and the state’s problem-gambling fund received about $4,400,000.

Martin gave a snapshot of the six commercial casinos in Maryland and said MGM National Harbor remained the largest contributor in fiscal 2024. He said sports wagering continues to grow: as of January 2025, Maryland had 24 licensed sportsbooks, and mobile operators DraftKings and FanDuel together account for an estimated 75%–80% of the mobile market. He said contributions from sports wagering were over $46,500,000 at the midpoint of fiscal 2025 and that the agency expects continuing seasonal variation tied to professional and college sports.

Agency procurement and program items listed for calendar 2025 include a competitive RFP for the lottery’s central system (Martin called it “the nerve center that runs all of the lottery operations”), an RFP for the e-licensing system that handles casino and sports-wagering regulatory functions, an advertising contract expected to be awarded in Q1, and continued work on the ITLM (instant ticket lottery machine) program that serves veteran services organizations. Martin said the lottery’s initial central-system contract carried a two-year extension approved by the Board of Public Works to allow time for the new RFP.

Martin described the voluntary exclusion program (VEP) and the agency’s work with the Maryland Department of Health and the Alliance for Responsible Gambling (MARG) to fund and coordinate problem-gambling services and prevention. He said the agency had submitted an application for national recertification of its responsible-gaming verification program.

Committee members asked whether the lottery planned to pursue a state iLottery. Martin said “Currently there's no plan to do that. We continue to monitor iLottery installations around the country and continue to do our due diligence and and be prepared. But, for now that's really not a priority that, that we have.”

The agency also described ancillary oversight responsibilities that do not produce material revenue for the state, including oversight of grandfathered electronic instant-bingo machines in Anne Arundel and Calvert counties, the ITLM program (about 400 machines in roughly 90 veteran posts), skills-based amusement devices (about 3,000 devices at nearly 400 locations), and the regulation and quarterly taxation of 17 daily-fantasy-sports operators whose contributions flow to the Blueprint for Maryland's Future fund (Martin said last year those contributions totaled a little less than $1,000,000).

The briefing closed with committee members and agency staff agreeing to continue review of procurement steps, tax- and regulatory-proposal impacts, and responsible-gaming work this session.","The Maryland Lottery and Gaming Control Agency told the House Ways and Means Committee that fiscal 2024 produced more than $2.7 billion in sales and nearly $700 million in profit, and outlined upcoming procurement actions, veteran-focused instant-ticket machines, and responsible-gaming efforts.","actionData","errors"]

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Maryland regulators describe offshore 'illegal' online gaming as persistent challenge; cease-and-desist letters ineffective so far

Maryland Lottery reports $2.7 billion in fiscal 2024 sales; agency outlines major contracts and responsible-gaming programs