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

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

We’re not even two months into 2025, and the prospects for additional states endorsing iGaming or online sports wagering are becoming bleaker each day. Conversely, there is a push for raising sports betting taxes, with Maryland positioning itself as a frontrunner to implement such changes. 

A recent report from Eilers & Krejcik Gaming (EKG) indicated that Maryland may be the state most probable to implement an increase in the online sports betting tax this year. Governor Wes Moore’s (D) budget for 2025 suggests increasing the state’s tax on mobile sports betting from 15% to 30%. It additionally contains a clause to increase the tax rate on table games at physical casinos from 20% to 25%.

"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 company stated that a recent attempt to raise online sports betting taxes in Indiana is “dead on arrival,” suggesting that Maryland may be the sole state to implement a sports betting tax increase this year. 

 

Reasons Maryland is a Sensible Choice for Increasing OSB Taxes 

One reason Maryland is a strong contender for raising its mobile sports wagering tax is the absence of political backing for legalizing iGaming and internet lottery. 

“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.

Last month, an iGaming bill was introduced in the State House, but there is a general agreement that the legislation is probably destined to fail due to the potential competition from online casinos against the state’s brick-and-mortar gaming establishments. 

The Maryland Lottery and Gaming Control Agency advocates for iGaming on the grounds that it might eliminate black market operators who are exploiting customers. That doesn't imply the bill will be enacted, and without approval, the sports betting tax continues to be a focal point. 

“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.”

 

Additional States That May Increase OSB Taxes 

Last year, Illinois introduced a tiered tax structure for sports betting, where the biggest market share operators are subjected to higher tax rates. Worries grew within the gaming industry that other states might increase those taxes as a means to strengthen state revenues. 

This year, Ohio is working to achieve this with Gov. Mike DeWine (R) advocating to increase the state's online sports betting tax to 40% from the current 20%. That’s following its previous increase to 20%, aligning with the national average. 

Industry analysts think the governor’s most recent request is too excessive and probably won’t be approved. Due to substantial budget shortfalls, New Jersey is also a contender to possibly change internet gaming taxes this year. 

“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.