Maryland Officially Increases Sports Betting Tax Rate

• Gov. Wes Moore (D) signed a bill into law that includes an increase to Maryland’s sports betting tax rate
• HB 352 included an increase to 20% for the state’s sports betting tax rate
• The House and Senate included the planned increase in their state budget proposals

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Maryland is the first state in 2025 to officially increase its sports betting tax rate.

Several state lawmakers have proposed plans to increase rates in 2025, but Maryland Gov. Wes Moore (D) made it a reality today as he signed HB 352 into law.

The bill includes a tax rate increase to 20%, up from 15%.

Compromised Down to 20%

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

However, Moore’s version of the budget he introduced in January included an ever larger increase to Maryland’s sports betting tax rate. Moore originally proposed an increase to 32% for the state’s rate.

Lawmakers settled on a 20% compromise.

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.

Millions in New Revenue

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.

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

First State to Increase Sports Betting Tax Rate in 2025

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.

However, the House and Senate both denied the increase in their budget plans.

New Jersey Gov. Phil Murphy (D) also 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.

The budget has yet to move forward.

Finally, Louisiana lawmakers are seriously considering an increase to the state’s sports betting tax rate. Earlier this week, the House of Representatives approved a bill to increase the sports betting tax rate to 21.5%, up from the 15%. The bill will move forward to the Senate.