Washington Commanders head coach Dan Quinn talks with Maryland Governor Wes Moore (Photo by Greg Fiume/Getty Images)
Maryland Gov. Wes Moore, seeking to address a budget shortfall of approximately $3 billion, is proposing changes to the state sports betting tax rate. His latest proposal, unveiled Wednesday, includes doubling the rate from 15% to 30%.
While Moore’s proposal may rankle some sports bettors, it’s not unprecedented. Illinois recently increased its rate from 15% to 40%, while Ohio’s doubled from 10% to 20%. Massachusetts and New Jersey both tried as well, albeit unsuccessfully.
Moore has also proposed raising the tax on casino games from 20% to 25%. Efforts to legalize iGaming in Maryland failed last year, though they are likely to be revisited in the future.
“Seems like a big jump, but many of our neighboring states are significantly higher than 15% today,” Helene Grady, Maryland’s budget and management secretary, said per multiple reports. “Pennsylvania is at 36% and New York is even higher, north of 50%.”
Maryland sports betting has been legal at retail sportsbooks since 2021, with mobile sports betting launching the following year. The state is now home to 11 online sportsbooks — including industry leaders DraftKings, FanDuel and BetMGM — and 13 retail locations. State laws allow up to 60 licenses, so there is plenty more room to grow as the industry keeps surging in popularity across the country.
The state has performed relatively well since legalization. Sports betting wagers totaled $5.9 billion in 2024, a 28.7% increase over 2023. Gross revenue among sportsbooks was $653.7 million. Furthermore, in December alone, the year-over-year handle increased 13.8% to $637.8 million. That was in spite of a drop in gross revenue to $45.6 million. Meanwhile, state contributions still totaled $6.51 million.
The NFL unsurprisingly accounted for the highest percentage of sports wagers at more than $121.8 million. The NBA was next in line at $103.7 million. This comes as the industry prepares for one of its busiest stretches on the calendar, with the Super Bowl in February and the NCAA men’s and women’s basketball tournaments in March.
The potential for tax increases in Maryland and other states has created volatility on Wall Street in recent days, with DraftKings stock slipping 3%. Other gaming stocks could be impacted on a smaller scale, including Caesars, Flutter Entertainment, MGM Resorts and Penn Entertainment.
A bill to raise the betting tax in Michigan expired this week. Efforts in Louisiana recently fell short as well. Should Maryland’s pass, it would rank among the highest in the country
Moore also suggested a 6.25% tax hike on earners of more than $500,000 and a 6.5% increase for those making more than $1 million.
He added: “If our economy had been growing more rapidly, we could better withstand any headwinds or any challenges that this state might face. So that’s why economic growth is our north star.”
Doug is a seasoned sports writer/editor with bylines for the New York Times, Associated Press and CBS Sports. He also has extensive experience in the betting industry, including work for Point Spreads. Prior to that, he covered UConn women's basketball and football for Hearst Connecticut Media.
