Maryland Lawmakers Planning to Increase Sports Betting Tax Rate

• Maryland Gov. Wes Moore (D) announced the state’s 2026 budget framework
• The budget will include an increase of the state’s sports betting tax rate to 20%
• Moore originally suggested an increase to 30%

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Maryland will indeed increase its sports betting tax rate, but not as much as originally expected.

Gov. Wes Moore (D), Senate President Bill Ferguson (D-46), and House Speaker Adrienne A. Jones (D-10) yesterday announced the framework for the state’s proposed $67.3 billion 2026 budget. The budget includes agreed-upon cuts of nearly $2.3 billion and includes more than $1 billion in new revenues.

Included in those new revenues? An increase in the Maryland sports betting tax rate from 15% to 20%.

Not as Much as Expected

The budget must still be passed by both the House of Representatives and Senate, so amendments to the much could still potentially be on their way. However, the general framework of the budget is likely in place.

While the rate will likely increase when the budget is finalized, it is not as much as originally expected. When Gov. Moore released his budget plan in January to address the state’s $3 billion deficit it included a proposal to increase the state’s sports betting tax rate to 30%.

Moore also proposed an increase to the state casino table games rate, bumping it from 20% to 25%, which was not included in the framework.

The increase to 20% is expected to bring in $32 million more in revenues for the 2026 fiscal year budget.

Maryland’s sports betting market has exceeded most expectations after launching in December 2021. Through the first five eight months of FY 2025, Maryland has reported more than $61 million in sports betting tax revenues to the Blueprint for Maryland’s Future fund.

Since the inception of Maryland’s sports wagering program, Maryland has reported $149,624,451 in sports betting tax revenue.

“This is what responsible governance looks like. 94% of Marylanders will either get a tax cut or see not change in their income taxes. For the third year in a row, there will be no increase in broad based sales tax or state property tax,” Moore said during a press conference announcing the framework.

First State to Enact Increase

Maryland is one of several states since the start of 2025 to propose an increase to its sports betting tax rate.

In early February, Ohio Gov. Mike DeWine (R) presented his two-year budget plan, which included an increase to the state’s sports betting tax rate from 20% to 40%. Ohio lawmakers previously agreed to increase the state tax rate from 10% to 20% in 2023, just several months after launching sports betting.

The sports betting tax rate increase plan will bring in an additional $130 million to $180 million in revenues per year, DeWine said.

New Jersey Gov. Phil Murphy (D) also recently presented a record-setting $58.05 billion budget, which includes a tax rate increase to 25% of adjusted revenues for both online sports betting and iGaming.

The state currently taxes iGaming and online sports betting at a rate of 15% and 13% of adjusted revenues, respectively.