Maryland state senators Paul Corderman and Karen Lewis Young have reintroduced legislation (SB 639) to legalize historical horse racing (HHR) in Maryland, aiming to generate new tax revenue, support struggling off-track betting (OTB) locations, and prevent gaming tax revenue from flowing to neighboring Virginia’s expanding HHR market. The bill, which would put HHR legalization to a voter referendum in November, is backed by OTB owners and horse racing advocates who argue it will preserve Maryland’s horse racing industry and generate significant revenue—estimated at $56.5 million in the first year and growing to $188.3 million by 2031—without raising taxes.

However, Maryland casinos, including MGM National Harbor and Horseshoe Casino, oppose the bill, citing concerns that HHR machines would cannibalize their revenue and reduce state tax income due to lower tax rates on HHR compared to video lottery terminals (VLTs). MGM representatives highlighted the negative impact of Virginia’s nearby HHR facilities on their business, warning that flooding Maryland’s market with thousands of new HHR machines could further harm casino revenues rather than solve the competitive challenge posed by Virginia’s growing gaming market. No vote was taken on the bill during the committee hearing.