- The sports betting tax rate in Maryland increased from 15% to 20% last year in an effort to support a budget gap.
- The effects have been immediately noticed, with the state recording $146 million in revenue over the last year – $36.2 million more than they would have at 15%.
ANNAPOLIS, Md. – One year ago, Governor Wes Moore signed the Budget Reconciliation and Financing Act of 2025 into law. This changed the sports betting tax rate in Maryland, increasing the contributions of sportsbooks from 15% to 20%.
While legislators attempted to increase the rate to 30% in an earlier draft of the bill, the House Ways and Means Committee voted 13-5 to drop it to its current rate.
Effects Of The Maryland Sports Betting Tax Rate Hike
With 95% of the taxes supporting public education, the remaining 5% are earmarked for the state’s General Fund.
With a $2.7 billion budget gap last year, the state approved a budget bill last month at a $1.4 billion shortfall.
Some of this can be attributed to legal sports betting in Maryland, as the amount of money bet on sports in the state increased 10.2% from FY 2025 to FY 2026. However, the tax benefits increased 59.5% in the same time.
With over $114 million sent to the state this fiscal year, the total may double FY2025’s total ($71.9 million) by the time the fiscal year ends on June 30.
With $6.2 billion bet in the 11 reporting months since the tax change, Maryland recorded over $10 million in tax revenue in five straight months – something the state only did once ever before the change.
| Old Rate (15%) | Current Rate (20%) | Rejected Rate (30%) |
| $109.7 million | $146.2 million | $219.4 million |
Due to the changes, Maryland recorded $36.2 million more in taxes from legal sports betting. Since launching, over $264 million has helped fund the Blueprint for Maryland’s Future Fund with another $28.2 million entered into the General Fund.
