Maryland Considers Ending Online Sports Betting by 2026
Maryland is another state to reconsider online sports betting. A new bill, SB 1033, aims to eliminate mobile sports betting by January 1, 2026, while allowing retail sportsbooks to continue. Senator Joanne Benson introduced the bill, which also proposes refunds on application fees for some licensed operators.
A Sudden Shift
Maryland voters approved sports betting in 2020, leading to the launch of retail sportsbooks in 2021 and online platforms in November 2022. Since then, the industry has grown rapidly. By January 2025, Maryland bettors had wagered $12.2 billion, generating $143.2 million in state tax revenue.
Most of this revenue funds the “Blueprint for Maryland’s Future”, which supports public education. In the first seven months of fiscal year 2025, online sports betting alone contributed $54.8 million.
Banning online betting would cut off a major portion of these funds, raising concerns about budget shortfalls.
Why End Online Sports Betting?
Senator Benson has not fully explained the reasons behind the bill. However, it reflects growing concerns about the impact of gambling on low-income communities.
Lawmakers in Vermont have raised similar arguments, calling state-run gambling a “hidden form of regressive taxation” that harms poorer households.
At the same time, Governor Wes Moore proposed raising the sports betting tax from 15% to 30%. If online betting is banned, the tax hike would only apply to retail sportsbooks, reducing the expected revenue increase.
A Growing Anti-Gambling Movement?
Maryland is not the only state reconsidering legal betting. In Vermont, a proposed bill (H.133) seeks to repeal the state’s sports betting and lottery laws.
If passed, violations could lead to fines up to $2,000 or even jail time. Lawmakers argue that gambling disproportionately harms low-income residents, echoing concerns in Maryland.
With 40% of Vermont’s sports betting activity coming from out-of-state players, eliminating the industry could also impact local businesses and tax revenue. Maryland lawmakers may face similar challenges.
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