Maryland Cashes In on Gaming With $1.6B in Tax Revenue During Fiscal 2026

Maryland may be small in size, but it’s a major player in the U.S. commercial gaming industry. The state’s coffers are cashing in, with gaming tax revenue helping bankroll an array of public programs.

Maryland was the 10th largest commercial casino state in 2025. The state’s six casinos, led by MGM National Harbor, along with retail and mobile sports betting, generated more than $2.7 billion in gross gaming revenue (GGR).

With some of the highest gaming tax rates in the country, as casinos share between 42% and 58% of their slot GGR with the state, and table game revenue taxed at 20%, Maryland won big in its 2026 fiscal year.

The Maryland Lottery and Gaming Control Agency (MLGCA) reports that the casinos contributed $822.2 million in slot and table game taxes to the state during the 12 months ending June 30, 2026, including $599.1 million to the Education Trust Fund. Local aid totaled $103.5 million, the horse racing industry was supported with $94.8 million, and the Maryland Small, Minority, and Women-Owned Business Fund received $20.3 million.

Casino taxes also helped responsible gaming programs with $4.5 million.

Sports Betting Growth

Despite concerns that prediction markets are pulling sports bets away from state-regulated online platforms, the MLGCA reports that tax revenue from oddsmakers hit a new high in FY26. Maryland’s online and retail sportsbooks contributed $132.3 million to the state, 49% higher than the $88.9 million benefit the state received in FY25.

Mobile sportsbooks share 20% of their GGR with the state, with 15% allocated for the Blueprint For Maryland’s Future Fund. Retail oddsmakers are taxed less at 15%, all of which goes to the Blueprint.

Fantasy sports operators, which also contribute 15% of their contest fees to the state, added a little more than $1 million.

Lottery Remains Strong

The Maryland Lottery had its third-best year on record in FY26, with sales of nearly $2.7 billion. Scratch-off tickets surpassed the $1 billion mark for a fifth consecutive year, and lottery players won $1.69 billion during the 12 months, or an average of $4.6 million a day.

The Maryland Lottery generated a profit of $681.6 million, with $532.5 million allocated to the General Fund to support a variety of state programs and services. Lottery proceeds supported public transit initiatives, the Maryland Veterans Trust Fund, and improvements to Camden Yards, home of the Baltimore Orioles.

There were 1,659 lottery tickets that won $10,000 or more, with 542 plays collecting prizes of upwards of $50,000. Retailer sales and commissions totaled $199.5 million, averaging $47,000 per retailer.