Maryland Governor Wes Moore has approved a five percentage point GGR tax hike in the state from 15% to 20% for online sports betting operators as part of his approved budget.
The Budget Reconciliation and Financing Act of 2025, presented as House Bill 352, will raise the rate of tax for sportsbooks in the Old Line State to 20% on all GGR, up from 15%.
Initially, in an early draft of HB 352, Moore proposed an even higher tax rate of 30%, with the aim of easing a $2.7bn burden in the state’s budget.
However, lawmakers pushed back on the strict rate, despite the governor’s stance that the tax hike would be in line with neighbouring states.
Maryland is bordered by Pennsylvania where the tax rate is 36%, while fellow neighbour Delaware has a 50% levy, albeit against monopoly operator Rush Street Interactive.
However, Virginia and West Virginia, which also share state borders with Maryland, are among the lowest tax rates in the US at 15% and 10%, respectively.
Maryland’s new rate of tax will now be on a par with Ohio’s, after the rate there was doubled from 10% in 2023. Ohio Governor Mike DeWine wants to push the rate to 40% as part of his own budget.
Other aspects of HB 352 included a tweak to where tax funds are allocated that will now see 5% of online sports wagering tax revenue go towards Maryland’s general fund, while the remainder will be used to fund public educational resources.
The rate of tax for retail sports betting revenue in Maryland remained unchanged at 15%.
Governor Moore’s state budget plans did not feature any provision to introduce igaming in Maryland, despite bills from Senator Ron Watson and Delegate Vanessa Atterbeary looking to legalise the vertical in the state.
Moore, discussing the bill’s signing into law in a press release, said: “This wasn’t just about balancing a budget. It was about weathering two storms: a fiscal crisis and a new White House that attacks our economy.”
Sports betting tax hikes could come into effect elsewhere across the US, with New Jersey Governor Phil Murphy’s budget plans proposing raising both sports betting and igaming tax to 25%, up from 13% and 15%, respectively.
Both Louisiana and North Carolina lawmakers are also mulling over sports betting tax increases, though the Tar Heel’s House of Representatives has issued pushback to the Senate’s suggestion of doubling the rate from 18% to 36%.
The post Maryland online sports betting tax rise signed into law first appeared on EGR Intel.
Mobile sports betting operators in the Old Line State will now be subject to a 20% tax rate on GGR, avoiding Governor Wes Moore’s initial proposed hike of 30%
The post Maryland online sports betting tax rise signed into law first appeared on EGR Intel.