Maryland Governor proposes increase on sports betting tax rate

While the original legislation called for a tax rate increase of 15% to 30%, the House Ways and Means Committee trimmed the proposal down to 20% for operators.

Following a proposed sports betting tax rate increase of 15% to 30%, Maryland Governor Wes Moore has reportedly seen his legislation amended by the House Ways and Means Committee to implement a 20% tax rate for online sports wagering. 

Governor Moore has been advocating for a significant increase in the state’s sports betting tax for quite some time. During January 2025, he began to draft the original version of HB 352, signaling an intent to double the tax rate from 15% to 30% to help reduce a $2.7bn state budget gap.

During a session held by the House Ways and Means Committee on March 20, however, lawmakers trimmed the proposed increase to 20%, and approved the legislation by a majority vote of 13-5. The new legislation now includes an amended online sports betting tax rate of 20%. 

Governor Moore had argued that a 30% rate would mirror the sports betting tax rates of neighboring states while also fostering sound tax policy and helping to cover the state’s financial shortfall.

Good to know: Maryland Lottery and Gaming released the state’s sports wagering results throughout February 2025, including a 7.5% increase year-over-year in handle for a reported total of $475.7m

Following the committee’s approval of HB 352, now titled the Budget Reconciliation and Financing Act, the legislation must pass through the Maryland House of Representatives and Senate before being finalized by April 7. 

During the March 20 meeting, the Committee also voted against an additional proposal Governor Moore had included at the beginning of 2025, which would raise the tax rate on casino table games from 20% to 25%.

Kirk Geller

Visit Profile

Players trust our reporting due to our commitment to unbiased and professional evaluations of the iGaming sector. We track hundreds of platforms and industry updates daily to ensure our news feed and leaderboards reflect the most recent market shifts. With nearly two decades of experience within iGaming, our team provides a wealth of expert knowledge. This long-standing expertise enables us to deliver thorough, reliable news and guidance to our readers.