Gorvernor Wes Moore has proposed to double the Maryland sports betting tax to 30% in his budget highlights for FY2026.
The proposals outlined in a comprehensive budget also suggest ramping the gaming table tax rate from 20% to 25%.
The Governor has outlined his plans are built on four principles:
- Growing the Maryland economy;
- Strengthening Maryland’s labor force;
- Modernizing government;
- Fixing what’s broken in the Maryland tax system.
He commented: “We are guided by a single, clear principle: build an economy that grows the middle class and gives everyone a pathway to work, wages, and wealth. We did not create this fiscal crisis, but we are determined to fix it. Our common-sense proposal balances the state budget through strategic investments in growing the middle class.”
Moore added, “By prioritizing economic growth, modernizing government, and making taxes simpler, fairer, and for the vast majority of Marylanders, lower, we will weather this storm and emerge stronger. I look forward to partnering with the Maryland General Assembly to tackle this historic budget crisis and set Maryland on a path of sustainable economic growth.”
Alongside the floated increase, the governor’s budget also proposed a hike in the gaming table tax rate from 20% to 25%.
Sports Wagering to generate $95.4 million for the state in FY2025
The Old Line State generated $6.5 million in contributions to the state from sports wagering in December 2024, bringing the total contribution for the first half of fiscal year 2025 to $46.6 million. The FY2026 budget suggests sports wagering would generate $95.4 million with the increased charge.
Maryland’s total handle in December 2024 was $637.3 million, with $591.7 million paid out in prizes. The taxable win after promotional play and other deductions was $43.2 million, and it has a cumulative total of $304.5 million in FY2025 to date. The State has 11 licensed mobile sports betting platforms and 13 locations boasting a retail sportsbook.
Maryland sports bettors wagered $637,301,168 during December 2024 and won back $591,678,179 in prizes. Maryland has 11 mobile sports wagering platforms and 13 retail sportsbooks. This was slightly lower than the record $639.9 million generated in November.
The budget document outlines tax amendments being made to bring Maryland’s tax rates in line with those of its neighbors or better align the State with the principles of sound tax policy.
Not the first, and probably not the last
Two examples of sports wagering tax increases in recent years exist. In 2023, Ohio Governor Mike DeWine doubled the state’s sports betting tax rate to 20% from 10%. The idea was suggested just weeks after betting was officially signed into law. More recently, Illinois Gov. J.B. Pritzker implemented an adjustable sports wagering tax model, with operators generating over $200 million in revenue being taxed at 40%. Those below pay a 20% tax rate.
Explore more articles like this
Subscribe to the Markets Outlook newsletter
Get critical insights to spot investment opportunities, mitigate risks, and refine your trading strategies. Delivered every Monday
Coinpectra is a free to read website, by purchasing a product through affiliate links in our content, we may earn a commission at no extra cost for our readers. Which will allow us to finance our operations and continue with our research work for our readers. We ensure all recommendations go through in-depth editorial checks to maintain accuracy and quality. You can learn more about this on Content Guidelines and How We Rate pages.
1
1
