Maryland governor proposes doubling sports betting tax rate for 2026 budget
Wes Moore calls for 30% tax on sportsbooks, while the regulator reveals cease-and-desist letters have been sent to 11 illegal operators
Maryland Governor Wes Moore has included plans to double the state’s online sports betting tax rate as part of his proposed 2026 fiscal budget.
If approved, the move would see the sports betting tax rate increase from 15% to 30%, which would put Maryland among the highest-taxed states, behind only Vermont (31%), Pennsylvania (36%), New York (51%), and Illinois’ graduated tax rate of between 20% and 40%.
New Hampshire and Oregon have rates of 51% and 50%, respectively, yet these are monopoly markets operated by DraftKings. Likewise, Delaware (50%) is controlled by Rush Street Interactive with its BetRivers brand the sole online sportsbook in the state.
Explaining the rationale for the suggested hike in Maryland, Moore’s budget and management secretary, Helene Grady, pointed to significantly higher tax rates in neighboring jurisdictions.
“[It] seems like a big jump, but many of our neighboring states are significantly higher than 15% today. Pennsylvania is at 36% and New York is even higher, north of 50%,” she said.
Launched in late 2022, Maryland’s favorable online regulatory framework, including the 15% tax on gross gambling revenue, which is below the national average of around 20%, meant the state ultimately attracted almost a dozen bookmakers.
As per the budget proposal, It is estimated that the new tax rates would generate an extra $95.4m to the state every year.
This would go some way to plug the state’s $2.7bn budget deficit – the largest in the Old Line State for 20 years.
Moore’s proposed budget for 2026 has now moved to the committee stage for further examination.
In addition to the suggested tax hike, Maryland’s gaming regulator revealed it has also sent out mass cease-and-desist orders to illegal operators accepting players in the state.
The Maryland Lottery and Gaming Control Agency (MLGCA) dispatched 11 cease-and-desist letters to various entities, including sweepstakes operators, demanding that they block individuals in the state from accessing their platforms.
EGR North America contacted the regulator and was told Golden Hearts, Zula, MC Luck, REBET, Fortune Coins, and StakeUS acknowledged the letter and responded to the MLGCA.
However, there was no response from BETUS, BETNOW, SlotsAndCasino, Everygame Sportsbook, and BetAnySports.
The regulator added that none of the named operators have yet agreed to block Maryland residents from accessing their sites.
The MLGCA added that follow-up letters have been sent and initial letters to payment processors are in progress, again demanding they prevent access from Marylanders.