Maryland raises online betting tax rate from 30% to 20%
Maryland Increases Online Sports Betting Tax Rate
Maryland lawmakers have approved an amended version of House Bill 352, which increases the tax rate on mobile sports betting operators from 15% to 20% of taxable proceeds, effective from July 10, 2025. This change is part of Governor Wes Moore's 2026 budget plan and aims to strengthen state revenue without directly taxing players.
The new tax rate places Maryland within a competitive range among states, as earlier calls by Governor Moore to increase the tax as much as 30% were not acted upon. Retail sports wagering operators will continue to pay a 15% tax rate supporting education funding.
The House of Delegates' Ways and Means Committee approved the amended bill, with the new tax revenue directed towards Maryland's general fund. The increased tax revenue will support local schools, law enforcement, and firefighters.
The tax hike follows a broader trend that has swept multiple US jurisdictions. Maryland lawmakers argue that higher taxes will align Maryland with its neighbors and introduce a sounder tax policy. However, the decision to lower the proposed tax hike will save operators some expenses.
In a recent development, Maryland regulators are trying to get controversial sweepstakes operators to stop offering their products to local players. A proposal to outlaw sweepstakes gained significant traction earlier this month in Maryland, potentially spelling trouble for sweepstakes companies.
The Maryland Lottery and Gaming Control Agency has ordered VGW, one of the biggest social casino companies available in the US, to cease and desist. Sweepstakes, which remain unregulated in the United States, have experienced significant growth recently, prompting regulatory scrutiny.
It is worth noting that the tax rate for casino table games in Maryland remains unchanged. The state regulator has published a list of all legal gaming services available in the state, as well as a list of all operators that have received cease-and-desist orders from the agency.
Governor Moore's latest budget will take some of the tax burden off Marylanders' shoulders, with 94% of all people in the state either getting a tax cut or remaining unaffected in terms of income taxes. Only those who have "done exceptionally well" will have to pay more taxes, according to Governor Moore.
The new tax rate for online sports betting in Maryland will be between 15% and 20%, representing an increase of 5%. This is lower than the tax rate in Ohio, which was doubled two years ago. The extra money from the revised tax structure will support local schools, law enforcement, and firefighters.
In conclusion, the proposed tax increase for online sports betting in Maryland will see a rise from 15% to 20% of taxable proceeds, effective from July 10, 2025. The new tax rate places Maryland within a competitive range among states and aims to support local schools, law enforcement, and firefighters without directly taxing players. The decision to lower the proposed tax hike will save operators some expenses.
- The increased tax rate on mobile sports betting in Maryland, set to take effect on July 10, 2025, will not only apply to sports betting but could potentially impact the casino-and-gambling industry as well, given the broad gambling trends across multiple US jurisdictions.
- The 5% increase in the tax rate for online sports betting in Maryland, while aligning with gambling-trends in other states, marks a departure from earlier proposals that sought a 30% tax rate, a difference that could have greater implications for the business side of casinos.
- While the tax hike on sports betting and potential future adjustments in casino taxes are matters of politics and casino-culture, the ultimate aim is to bolster state finance by generating revenue that supports local schools, law enforcement, and firefighters.
- As the debate on taxes for online sports betting and potential regulative actions against sweepstakes operators unfolds, general-news outlets will closely monitor the decisions made by Maryland lawmakers, affecting not only the gambling sector but the broader economic landscape as well.
