Maryland Most Likely State to Raise Sports Betting Tax, Says EKG

Posted on: February 23, 2025, 07:06h. 

Last updated on: February 24, 2025, 09:11h.

Todd Shriber @etfgodfather Read More

Expertise: Financial, Gaming Business, Mergers and Acquisitions.

• Maryland seen as most likely to raise sports betting taxes in 2025
• Mixed outlook for other states following suit

We’re less than two months into 2025, and the outlook for more states approving iGaming or online sports betting is growing dimmer by the day. On the other hand, there’s momentum for increasing sports wagering taxes, with Maryland emerging as a leading contender to do so.

In a recent report, Eilers & Krejcik Gaming (EKG) said Maryland could be the state most likely to pass an online sports wagering tax hike this year. Gov. Wes Moore’s (D) 2025 budget proposes boosting the state’s levy on mobile sports betting to 30% from 15%. It also includes a provision to raise the tax rate on table games at brick-and-mortar casinos to 25% from 20%.

We view the Maryland one as the most likely to pass, raising the top-line tax rate from 15% to 30%,” observes EKG.

The research firm said a recent effort to increase online sports betting taxes in Indiana is “dead on arrival,” indicating Maryland could be the one state to move forward with a sports betting tax hike this year.

Why Maryland is Logical Candidate to Raise OSB Taxes

Among the reasons that Maryland is a prime candidate to increase its mobile sports wagering tax is that legalizing iGaming and internet lottery lacks political support.

“Opponents to the tax rise have suggested online casino or iLottery to make up tax revenues; however, we hear these alternatives have not been overly persuasive because they involve much heavier political lifts than simply upping the sports betting tax,” adds EKG.

An iGaming bill was filed in the State House last month, but consensus holds that the legislation is likely doomed because internet casinos could pose a competitive threat to the state’s land-based gaming venues.

“Maryland is the most serious contender for a tax rise, in our view, though we will have a better idea of that come March and April,’ according to EKG. “And regardless of that outcome, the general trend towards more taxation shows no sign of abating, in our view.”

Other States That Could Raise OSB Taxes

Last year, Illinois implemented a graduated tax system on sports betting under which the largest operators by market share pay higher rates. Concern mounted in the gaming industry that other states would also raise those levies as an avenue for bolstering state coffers.

This year, Ohio is attempting to do so with Gov. Mike DeWine (R) pushing to double the state’s online sports wagering tax to 40% from 20%. That’s after it was already doubled to 20%, which is in line with the national average.

“There is some chatter that New Jersey Governor Phil Murphy is considering online gambling tax rises as part of his plan to address a $3.8bn budget deficit. The current OSB and online casino tax rates, respectively 14.25% GGR and 17.5% GGR, are comfortably below national averages,” concludes EKG.