Online sports betting operators in Maryland must now deal with a higher tax rate.
Gov. Wes Moore recently signed HB352, known as the Budget Reconciliation and Financing Act of 2025. As part of the bill, the Maryland online sports betting tax rate jumps from 15% to 20%.
The legislature passed the tax increase to reduce the state’s $2.7 billion budget shortfall. However, the increase is short of Moore’s initial request.
Governor Gets Less Than He Wants
Moore wanted to double the rate to 30%. Additionally, he proposed raising the casino table game tax rate from 20% to 25%. Lawmakers kept the casino tax rate increase out of the bill.
In the Terrapin State, 5% of sports betting tax revenue goes to the general fund, with another 95% earmarked toward public education.
“All options are on the table right now to make sure we protect public education, health care, and vital services for Marylanders,” Del. Ben Barnes, the House of Delegates appropriations committee chairman, said earlier in the session regarding tax increases in the state.
One of those options on the table was legalizing online casinos, which would’ve included poker.
A pair of bills were filed in the House and the Senate. However, both proposals died in the legislature, and poker players in the state will have to wait at least another year to see if lawmakers can reach an agreement on the issue.
Tax Rate Hikes Has Mixed Results Elsewhere
The news of the tax increase comes as some other states recently considered tax increases on sports betting as well. North Carolina recently doubled its rate from 18% to 36%. Only New York (51%), New Hampshire (51%), and Delaware (50%) have higher rates.
Ohio Gov. Mike DeWine also favored doubling the Buckeye State’s rate from 20% to 40%, but legislators stripped that out of a budget bill. Illinois also recently increased the sports betting tax rate form
Illinois recently introduced a sliding scale that can see the tax rate rise as high as 41% for bigger operators. New Jersey Gov. Phil Murphy is seeking to hike the levy on sports betting from 13% to 25%. The tax on online gaming would also rise from 13% to 25%.
