Maryland Gov. Wes Moore and key members of the state legislature appear to have struck a budget deal that includes a lower tax hike for online sportsbooks than was originally envisioned.
The budget proposal Moore unveiled in January contained a doubling of the state’s tax rate for Maryland sports betting sites, with the governor recommending it rise to 30% from its current 15%.
Reasons given for the proposed increase included that it would bring Maryland more in line with neighboring states and perhaps “better align the state with the principles of sound tax policy.”
A hike too far?
Yet a meeting of the Maryland House of Delegates’ Ways and Means Committee on Thursday suggests that the governor and legislators have landed on a lower-yet-still-higher tax rate of 20%.
The committee voted 13-5 to approve an amended version of House Bill 352, the “Budget Reconciliation and Financing Act of 2025.”
That legislation previously proposed to increase the amount of revenue online sportsbook operators would have to hand over to the state to 30% from 15%.
However, after changes were made by the House committee on Thursday, and the committee's decision to favorably report the amended bill, it would now only increase the tax rate to 20%.
The increased tax revenue would also go to the state’s general fund, the committee heard.
Step back from that hike, my friend
At any rate, what’s on the table now is a decent-sized step back from the tax hike that was initially tossed out by Moore, which could mean a sizable chunk of change saved for operators.
Legal Maryland sports betting launched in late 2021, and retail and mobile operators have since contributed roughly $150 million toward education in the state via the 15% tax rate.
It may also be that lawmakers have had some sober second thoughts following the big bump to the Illinois sports betting tax rate last year.
Indeed, Maryland is lowering the temperature on online sports betting taxation as it sounds like lawmakers in Ohio are cool to the idea of another hike there (the state is already at 20%) and as New Jersey’s governor is getting pushback for his own proposed increase.
The White House is cutting taxes for the rich and burdening everyone else with high prices. But in Maryland, we’re doing things differently.
— Governor Wes Moore (@GovWesMoore) March 20, 2025
Today, I was proud to announce a budget framework for the state of Maryland alongside @SpeakerAJones and@SenBillFerg.
Meanwhile, another gaming-related tax hike proposal that the governor pitched has apparently been wiped out entirely. Members of the Ways and Means Committee voted against lifting the tax rate for casino table games to 25% from 20%.
The amendments by the House committee followed Moore, House Speaker Adrienne Jones, and Senate President Bill Ferguson announcing they’d arrived at a budget framework.
“Under this agreement, 94% of Marylanders will either get a tax cut or see no change in their income taxes,” Moore said on Twitter/X. “And, yes, we’re asking those who have done exceptionally well to pay more to support the best schools in the country, our law enforcement, and our firefighters.”
