The Senate also approved a similar House bill on Tuesday. The House bill now goes to Gov. Martin O'Malley.
Under Maryland law, up to $100 million in slot machine proceeds will be dedicated to horse racing, once slots become operational.
The legislation would provide more money for horse racing purses -- the money horse owners get if their horses win. The amount would rise from 85 percent to 89 percent. The increase would be a loss for money to the horse breeding industry, which would drop from 15 percent to 11 percent.