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Maryland’s online sports betting operators are now required to pay more in taxes. Governor Wes Moore signed HB352, the Budget Reconciliation and Financing Act of 2025, which officially raised the tax rate on online sports betting from 15% to 20%.
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The tax hike is part of Maryland’s response to a projected $2.7 billion budget gap. Even though the rate increase is now in effect, it falls short of what the governor originally pushed for. Moore had called for a 30% rate on online betting and also wanted to raise the casino table game tax rate to 25%. Lawmakers kept the casino proposal off the table by reaching a deal ac few months back with just a 20% rate.
Maryland’s sports betting handle for April was good for $513 million as we reported on.
Delegate Ben Barnes, who chairs the House Appropriations Committee, summed up the legislative mindset earlier in the session: “All options are on the table right now to make sure we protect public education, health care, and vital services for Marylanders.”
Currently, 95% of tax revenue from sports betting in Maryland supports education funding, while 5% goes to the general fund.
There was also an attempt to introduce online casinos, including internet poker, during the session. Lawmakers filed bills in both chambers, but those proposals failed to move forward. For now, online poker players in Maryland will need to wait until at least 2026.
The decision to raise Maryland’s rate comes at a time when other states are adjusting their sports betting tax frameworks too. North Carolina was pushing for an increased rate from 18% to 36% but got halted by the House last week. Illinois added a sliding scale that pushes the rate as high as 41% for large operators. New York, Delaware, and New Hampshire still hold the top spots with rates of 50% or higher. Meanwhile, New Jersey Governor Phil Murphy has called for a jump in both online gaming and sports betting taxes—from 13% to 25%.
In Ohio, Governor Mike DeWine aimed to double the state’s tax on sports betting from 20% to 40%, but lawmakers did not include that change in the final budget.