Maryland scales back proposed sports betting tax hike in budget deal

Maryland Governor Wes Moore and several top state lawmakers have come to an agreement on the budget regarding increasing the tax on online sportsbooks. It turns out the tax hike they were originally facing won’t be quite as steep as first proposed.

In January, Moore had suggested doubling the tax rate on Maryland’s sports betting sites, bumping it up from 15% to 30%. But with this new budget deal, it appears that they’re pulling back from that bigger jump. Legislators voted 13–5 to amend the proposed House Bill 352, setting the new rate at 20%.

The committee also heard that the extra tax revenue would be funneled into the state’s general fund.

The White House is cutting taxes for the rich and burdening everyone else with high prices. But in Maryland, we’re doing things differently.

Today, I was proud to announce a budget framework for the state of Maryland alongside @SpeakerAJones and@SenBillFerg.

— Governor Wes Moore (@GovWesMoore) March 20, 2025

The reasoning behind the proposed tax hike is that officials said it would help bring Maryland more in line with its neighboring states and maybe even “better align the state with the principles of sound tax policy.”

Maryland launched its legal sports betting scene in late 2021, and since then, both retail and mobile operators have chipped in about $150 million toward the state’s education funding, thanks to the current 15% tax rate.

Moore’s push to raise that rate was part of a bigger plan to tackle Maryland’s $3 billion budget shortfall. Like other states across the country, Maryland is eyeing gambling revenue as a way to help patch up financial gaps, something that’s becoming more and more common.

But while Moore aimed high with his proposal, some lawmakers seemed hesitant about putting too much pressure on the gaming industry all at once.

There’s still some uncertainty around what the final tax rate will look like, and with the legislature facing an April 7 deadline to approve the state budget.

Meanwhile, it looks like another one of the governor’s proposed tax hikes tied to gaming is officially off the table. The Ways and Means Committee shot down the idea to raise the tax rate on casino table games from 20% to 25%, however, it is still attempting to strike back against sweepstakes casinos.

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