Maryland Settles on 20% Betting Tax Hike After Bigger Push Fizzles
Maryland’s sports betting tax was set for a big jump. Gov. Wes Moore wanted to double it from 15% to 30% to tackle a $3 billion state budget gap. But lawmakers pumped the brakes. On March 20, the House Ways and Means Committee voted up House Bill 352, settling on a 20% rate instead.
A Lighter Hit for Sportsbooks
That’s a solid step back from the original plan. Operators like DraftKings and FanDuel can breathe easier, 30% would’ve stung hard. Now, the extra cash from this 5% bump still heads to the state’s general fund to chip away at that deficit.
The shift is a win for betting companies. A 20% tax means they keep more to play with compared to the 30% idea. Talking to WBOC, local man Derek Baker, co-founder of Crab Sports, says a huge hike would’ve crushed smaller outfits like his.
He’s glad the state didn’t go all-in, 20% lets them keep offering decent odds and promos. Lawmakers had until April 27, the session’s last day, to lock this in. For now, the lighter touch looks like the plan.
Bettors and Operators Weigh In
Players felt the heat too. Big names like DraftKings and FanDuel warned that a 30% tax could slash special offers. A 20% rate keeps things manageable, so bettors might still score some deals.
Gov. Moore’s first pitch didn’t just target mobile betting. He also wanted casino table game taxes up. That got shot down flat. The focus stayed on sportsbooks, and even then, lawmakers dialed it back. Why?
Maybe pushback from operators and fans made a dent. Maryland’s betting scene’s been growing since going live in 2021, with $558 million in handle last December alone, per state numbers. A softer tax hike keeps that momentum rolling without scaring off the industry.
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