Maryland recently passed an increase in the rate mobile sportsbooks will pay on their revenues, which was short of what the governor demanded but higher than what they were paying.
Tax Increase on Mobile Revenues Only
Maryland Governor Wes Moore recently signed the Budget Reconciliation and Financing Act of 2025 bill that will bump the tax rate on sportsbook revenues from 15% to 20%. However, the governor argued to double the rate to 30%, but that proposal gained little traction from his fellow lawmakers. Yet, the tax rate on retail sportsbooks was untouched and remains at 15% on land-based sportsbooks’ revenues.
Another byproduct of the bill was directing 5% of the mobile sports betting proceeds into the state’s general fund, with the remainder going to funding education in the Old-Line State. The news of a tax hike on sportsbook revenues was simmering throughout the session, as legislators had previously denounced the governor’s plan to double the rate.
However, a rate increase did take effect, and it is one of many the industry has seen over the past few years, with Illinois and Ohio recently boosting their rates. North Carolina and Louisiana are also considering tax increases, while Ohio is considering another bump in the rate.
“This wasn’t just about balancing a budget,” Moore said in a press release announcing Tuesday’s bill signings. “It was about weathering two storms: A fiscal crisis and a new White House that attacks our economy.”
Governor Moore subsequently posted on X, “We inherited a long predicted structural deficit and a state economy that wasn’t growing. But we didn’t kick the can down the road. We addressed this issue head-on.”
Is There a Future for Online Casino Gambling in Maryland?
State Delegate Vanessa Atterbeary has introduced iGaming legislation in the form of House Bill 17, while her colleague in the upper chamber, Senator Ron Watson, has sponsored a similar bill, SB 340. However, passage of either of these bills remains a long shot at best and will likely be shelved until another similar iGaming bill makes an appearance next year.
Atterbeary introduced the bill by saying, “We’ve seen other states significantly boost their economies with online gaming. This legislation will bring Maryland into the future while providing critical funding for education and other essential services.”
Only seven states, including New Jersey, Delaware, West Virginia, Pennsylvania, Michigan, Connecticut and Rhode Island, have launched iGaming in their states, while 39 states have passed sports betting legislation. Although revenues from iGaming dwarf those of mobile sports betting, legislators have been reluctant to pass such legislation due to the addictive nature of allowing people to have a 24-hour casino at their disposal in the form of mobile devices or PCs.
Cannibalization from land-based casinos is also a concern for operators, who fear that the convenience of online gambling will erode their foot traffic and profits. Many lawmakers do not want to lose the support of those powerful industry lobbies and have quietly backed away from supporting iGaming legislation.
Cordish representative Mark Stewart admitted his company has an iGaming license in Pennsylvania, but only because the industry had already launched by the time his firm began operating in the Keystone State. “So, we got a license,” Stewart said. “We could make a tremendous amount of money on legal iGaming in Maryland. But we are telling you not to do it because it is bad for Maryland, it is bad for us, and it is bad for our team members.”
