The measure opens the possibility of sports betting at a new Washington Redskins stadium.
Following a 47-0 vote in the Senate, the bill now goes to the House.
If approved by the House, sports betting would go to a voter referendum this November.
Maryland has been reluctant to take up sports gambling legislation but pressure from neighboring states and Washington D.C. may have forced lawmakers into urgency.
Earlier this week, the Virginia legislature approved a sports betting bill pending the governor’s approval.
Virginia and Maryland are competing for the new Redskins stadium, and Maryland’s chances of winning over owner Dan Snyder’s approval could be tied to whether the state legalizes sports betting.
The Redskins would face less competition for sports bettors in northern Virginia, where no casinos are slated to be built.
Maryland has a handful of casinos in the Washington D.C. region including MGM National Harbor and Live! Casino & Hotel in Hanover.
Maryland also faces competition from the nation’s capital.
The Washington D.C. Lottery is expected to launch its sports betting app this month.