The Impact of iGaming on African American Communities

Maryland’s gambling landscape faces the specter of transformation with the recent introduction of online sports betting and the potential legalization of Interactive Gaming (iGaming) in the State. This report delves into the socio-economic impacts of these changes, focusing particularly on the adverse effects, informed by data and trends from other states.

This article examines the impact on African American communities if Maryland were to authorize iGaming. The key points are:

• iGaming is illegal in 43 of the 50 states and there are increasing concerns about online gambling as more data from online sports betting and iGaming is becoming available for study by governmental entities, universities and health organizations. Last year, eight states introduced bills to legalize iGaming, and, in every state, the bills failed to become law, including in Maryland. More recently, when iGaming legislation was introduced, the bills instead have been referred to a committee to conduct a three-year study. Virigina adopted this approach when iGaming legislation was introduced in 2025.
• The societal harm of iGaming outweighs the purported benefits. The societal costs from increased problem gambling resulting from iGaming in New Jersy, pro-rated for Maryland’s population, are expected to equal or exceed $235 million annually.
• Research shows that online gamblers are more likely to be problem gamblers than those who engage only in traditional forms of gambling and that online gambling can be 10 times more harmful than traditional forms.
• Public health officials and other specialists in the field of gambling addiction from around the world are in agreement that the ease of accessibility of iGaming on smartphones and electronic devices has caused a dramatic increase in gambling addiction. The National Council on Problem Gambling warns that the risk of gambling addiction grew by 30% in the last three years while online gambling has expanded.
• A 2023 study commissioned by the Maryland Lottery and Gaming Control Agency found that revenues and, thus, the taxes paid by brick-and-mortar casinos would decrease by an estimated 10.2% if iGaming were legalized in Maryland.1 When the costs to Maryland to address the social ills caused by iGaming are added to the lost revenues from brick-and-mortar casinos, a net loss of revenue to Maryland could be the result if iGaming were authorized.
• Problem gambling hotline calls have surged everywhere that iGaming has been introduced.
• Studies in the U.S. and around the world have shown minorities are disproportionately affected by gambling-related harms.
• iGaming will cause severe public health, mental health, financial, and other problems in African American communities.
• Online gambling is known to cause significant financial distress. For example, in Brazil, a study found 20% of all welfare funds provided to low-income families were diverted to gambling activities.