Maryland lawmakers reject Moore’s sports betting tax hike

Maryland lawmakers have rejected Gov. Wes Moore’s plan to double the state’s online sports betting tax, choosing a smaller increase instead. At the beginning of 2025, the Maryland governor proposed a sports betting tax hike from 15% to 30%. However, lawmakers settled on a 20% rate, which was included in the amended Budget Reconciliation and 

Maryland lawmakers have rejected Gov. Wes Moore’s plan to double the state’s online sports betting tax, choosing a smaller increase instead.

At the beginning of 2025, the Maryland governor proposed a sports betting tax hike from 15% to 30%. However, lawmakers settled on a 20% rate, which was included in the amended Budget Reconciliation and Financing Act of 2025 (HB352).

Moore initially argued that a 30% tax would balance the competition with neighboring states and help close a $2.7 billion budget gap. However, lawmakers felt 20% was a fair compromise. They also rejected his proposal to raise the tax on casino table games from 20% to 25%.

The House Ways and Means Committee approved the change in a 13-5 vote, but it still needs final approval by April 7. If passed, Maryland would be the third state in two years to increase its sports betting tax.

Recent states to change sports betting tax rates

• Ohio doubled the rate from 10% to 20% in 2023, and Gov. Mike DeWine suggested raising it further to 40%. However, Ohio House rejected DeWine’s sports betting tax hike proposal earlier this month.

• Illinois introduced a sliding scale tax in 2024, with top operators facing rates up to 40%.

• New Jersey is considering raising its online sports betting tax to 25%.

• New York remains the highest at 51%, though some lawmakers want a reduction.