The Maryland General Assembly's W&M Committee convened on January 15, 2025, to discuss several key issues regarding the state's gaming operations and regulatory landscape. The meeting focused on the Maryland Lottery and Gaming Control Agency's (MLGCA) ongoing efforts to enhance its operations and address emerging challenges in the gaming sector.

The session began with an update on MLGCA's application for national recertification in its responsible deeming verification program. This initiative aims to ensure that Maryland's gaming operations remain consistent with best practices and standards across the country.

A significant portion of the discussion centered on the competitive landscape of gaming in the region. MLGCA representatives highlighted the presence of neighboring states such as Pennsylvania, West Virginia, Delaware, Washington, and Virginia, which have advanced gaming markets, including online lotteries and casinos. This regional context underscores the need for Maryland to remain competitive and responsive to evolving market dynamics.

The committee was informed about upcoming contracts crucial to the lottery's operations. MLGCA is preparing to issue a request for proposals (RFP) for a new lottery central system, which is described as the largest contract any lottery will undertake. The current contract is set to expire in 2025, but a two-year extension has been approved to facilitate the transition to a new system. Additionally, an RFP for an upgraded e-licensing system, which supports regulatory functions for casinos and sports wagering, is also in the works.

The meeting also addressed the advertising contract, which is nearing completion and expected to be awarded by the end of the first quarter of 2025. Furthermore, the ITLM program, which serves veteran services organizations, has had its contract extended to November 2025, pending legislative improvements.

A critical issue raised during the meeting was the growing concern over illegal online gaming activities. MLGCA officials reported that illegal operators are offering casino-style games and sports wagering to Maryland residents without state oversight. This situation not only deprives the state of tax revenue but also poses risks to consumer protection, as illegal operators do not implement measures such as age verification or responsible gaming practices. MLGCA is actively collaborating with approximately 12 to 15 states to share best practices and strategies to combat illegal gaming, including issuing cease and desist letters to illegal operators.

In conclusion, the W&M Committee session highlighted Maryland's proactive approach to enhancing its gaming operations while addressing the challenges posed by illegal gaming activities. The discussions underscored the importance of maintaining a competitive edge in the regional gaming market and ensuring consumer protection in the evolving landscape. The committee's next steps will involve monitoring the progress of the upcoming contracts and legislative efforts to strengthen the state's gaming regulations.