Maryland lawmakers have reduced the proposed sports betting tax hike from 30% to 20%.
In his budget highlights for the 2026 fiscal year, Maryland’s Governor, Wes Moore, suggested hiking the online sports betting tax rate to 30%. The proposed budget does not address cryptocurrency further.
Maryland Lawmakers Reduce the Potential Tax Rise
At a House Ways and Means Committee session, the budget framework was adjusted to feature a more modest rise than the initial proposition.
The current online sports betting tax rate is 15%, but the new proposals would increase it to 20%.
The Committee voted through an amended version of House Bill 352 by 13 votes to 5. The bill, titled the Budget Reconciliation and Financing Act of 2025, has a sister bill in the Senate, Senate Bill 0321, and contains the new proposals.
When Moore initially outlined his proposed budget, he said: “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.”
The House Ways and Means Committee’s bill also voted to remove Moore’s suggested tax rate increase on casino table games from 20% to 25%.
The proposed tax rate amendment has not yet been finalized. It will next be moved through the legislature and must be finalized by the close of Maryland’s session on 7 April 2025.
Tax is a Hot Topic Across the United States of America
Several states are considering amendments to their respective tax rates on gaming products.
In Ohio, Gov. DeWine wants to increase the online sports betting tax rate to 40%. After an initial doubling just months after legalization, the state would become the first to raise the tax rate twice.
House Finance Committee Chair Brian Stewart voiced opposition to the rate, asserting that it goes against the Republic Party ethos and that several GOP members were unimpressed by the leaders’ proposed tax hikes.
The hikes go against the company’s general policy, and President Trump’s party could instead explore general deregulation and the potential broadening of digital currency legislation.
A potential tax avenue that remains unexplored is taxation on crypto sportsbooks, which currently operate outside of state legislation due to nascent policy and misunderstanding by lawmakers.
Legislators in New Jersey suggest a near-double tax rate increase from the current sports betting rate of 13% to 25%. If passed, the state would also see a tax rate increase on gaming products from 15% to 25%.
The increase in tax rates would generate a further $322.6 million for the Casino Revenue Fund, contributing just under $1 billion in tax.
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