Maryland Gov. Wes Moore’s attempt to double the online sports betting tax has been thinned out.
During a Thursday House Ways and Means Committee meeting, lawmakers trimmed Moore’s proposed 30% tax on Maryland sports betting in his 2025 budget to 20%. The current sports betting tax rate is 15%.
Heading into the session with his proposed budget, Moore included a 30% tax rate.
Maryland sports betting tax rate fluid
Moore included the doubled tax rate to help make up a $3 billion budget deficit.
The committee approved the amended budget by a 13-5 vote. It voted against another proposal to increase casino table game taxes to 25% from 20%.
The legislature must approve the budget by April 7. Moore’s budget will be discussed elsewhere in the legislative process, so the proposed tax rate could change again.
US tax rate changes?
Maryland would not be the first state to increase its sports betting tax rate. In 2023, Ohio Gov. Mike DeWine doubled the sports betting tax rate to 20% from 10% in his budget. DeWine proposed another doubling of the rate this year. Key Ohio lawmakers, however, have signaled that the tax rate increases in DeWine’s proposed budget are unlikely.
In 2024, Illinois lawmakers implemented a tiered tax system ranging from 20% to 40%. That was up from its original 15%.
This year, NJ Gov. Phil Murphy also proposed hiking online gambling taxes in his budget. An industry source told LSR that when the budget was announced, it seemed unlikely the tax rate would be as high as he proposed. Still, at least some lawmakers see positives in the idea.
Lawmakers in other states, including Michigan and Indiana, also pitched tax increases on sports betting.
