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SB 725

Charles County - Gaming - Video Lottery Operation License and Video Lottery Terminals

2025 Regular Session Introduced by Arthur Ellis

Authorizes one extra Charles County video lottery operation (including a vessel on the Potomac) with up to 1,500 VLTs, raising the state cap to 18,000, pending 2026 referendum.

Hearing 2/25 at 1:00 p.m.
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Bill Summary · SB 725

Summary — SB 725: Charles County — Gaming — Video Lottery Operation License and Video Lottery Terminals

Status: Hearing scheduled 2/25 at 1:00 p.m.
Introduced: February 21, 2025
Sponsor: Senator Ellis (bill text); assigned to Budget & Taxation
Note: This bill is subject to voter referendum (general election, November 2026).

Purpose / Intent

Authorize an additional video lottery operation (VLT) license and authorize additional video lottery terminals (VLTs) to permit a new video lottery facility in Charles County located on a vessel on the Potomac River that can be accessed via the pier in Colonial Beach, Virginia. The change expands Maryland’s authorized commercial gaming capacity and adds a site-specific provision for a vessel-based facility.

Key provisions

  • Increases the statewide cap on VLTs from 16,500 to 18,000 and increases the maximum number of VLT facilities from six to seven.
  • Authorizes the Video Lottery Facility Location Commission to award one additional video lottery operation license for a Charles County facility and allocates up to 1,500 VLTs to a Charles County location.
  • Adds as an eligible facility location: a vessel on the Potomac River in Charles County accessible by the Colonial Beach (Virginia) pier, subject to Maryland environmental law (Art. 16–105) regarding construction of piers and bulkheads.
  • Preserves existing licensing requirements: initial license fee (at least $3.0 million per 500 VLTs), required capital investment thresholds ($25 million construction-related cost per 500 VLTs in bids), competitive selection process, and operational start deadlines (per current law: begin operations in a permanent facility within 18 months, extendable by SLGCC for up to 12 months).
  • Authorizes the Governor to reconstitute the Video Lottery Facility Location Commission for the purpose of awarding the Charles County license.
  • Submits the authorization to a statewide referendum at the November 2026 general election; if approved by a majority, the Act becomes effective 30 days after the official canvass.

Fiscal and programmatic impacts (per Department of Legislative Services)

  • ETF (Blueprint/BMFF) and state spending increase: estimated ETF revenue/expenditure impacts of +$6.0M (FY2027), +$28.6M (FY2029), and +$31.8M (FY2030). General fund expenditures decrease correspondingly except for an estimated $1.2M GF cost in FY2028 to procure a new central computer contract.
  • The fiscal note models a facility opening in July 2028 (assumes 1,000 VLTs and 20 table games for revenue modeling), producing FY2029 increases in gross gaming revenue (~$70.6M VLT; ~$7.2M table games) and problem-gambling fund receipts (~$435,000 annually starting FY2029).
  • Local impact: Charles County estimated to receive approximately $4.2M in FY2029 and $4.7M in FY2030 from local impact grants tied to VLT revenues.
  • Regulatory/administrative: SLGCA will incur costs to integrate the facility into the State central computer system and to staff compliance, auditing, and oversight; revenue from the facility may cover ongoing SLGCA costs.
  • Small business: Potentially meaningful effects (e.g., contracts, local spending, SMWOB account distributions).

Who is affected

  • Prospective video lottery applicants/operators (new licensee for Charles County).
  • State agencies (State Lottery and Gaming Control Agency/Commission) — increased oversight and central system integration.
  • Charles County (local impact grant recipients, county planning/infrastructure).
  • Existing Maryland video lottery facilities (modelling assumes limited cannibalization due to facility location).
  • Voters — final approval is contingent on statewide referendum in November 2026.

Timeline / Procedural notes

  • The bill takes effect for referendum purposes on July 1, 2025. If voters approve the referendum (Nov 2026), the Act becomes effective 30 days after the official canvass.
  • The Video Lottery Facility Location Commission selection process would follow the State’s competitive sealed proposal procedures; the Governor may reconstitute the Commission to award the Charles County license.

Compiled from official sources — confirm details with the bill’s official record.

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