Multiple jurisdictions have weighed a sports betting tax hike this year, but Maryland Gov. Wes Moore has signed his state’s budget, which includes the first finalized bump this year, into law.
Moore signed the Budget Reconciliation and Financing Act of 2025 this week, which includes a 5 percentage point tax hike for Maryland sports betting. The budget takes the rate to 20% from 15%.
Moore introduced his proposed budget earlier this year, which included an increase to 30%.
Maryland sports betting tax hike process
Moore’s proposal to double to tax was an effort to help shrink a $2.7 billion budget deficit. He also proposed increasing casino table game tax to 25% from 20%.
However, during the legislative budget process, lawmakers took a scalpel to Moore’s budget. In the House Ways and Means Committee, lawmakers voted 13-5 to drop the tax increase to 20%.
In the bill, 95% of sports betting tax goes toward public education, while the remaining 5% goes to the general fund.
No go for online casino
Despite thoughts that the budget deficit could help push online casino legislation in Maryland, two bills did not make much noise before the session ended.
Last year, Del. Vanessa Atterbeary guided an online casino through the House. It did not advance out of the Senate despite a champion in Sen. Ron Watson.
This year, both Atterbeary and Watson introduced bills. Neither passed their chamber of origin.
Other tax hike discussions
Tax hikes have been a popular point of discussion in legislatures nationwide.
Ohio Gov. Mike DeWine proposed doubling the rate to 40% from 20%, just two years after increasing it to 20% from 10%. Lawmakers declined that move, but last week, a lawmaker introduced a 2% handle tax.
NJ Gov. Phil Murphy is pushing for a tax bump to 25% from 13%. Meanwhile, a Louisiana hike passed the House this week and awaits Senate action.
Lawmakers in other states, like Indiana and Michigan, also floated tax hikes.
