However, despite its success, a new push from lawmakers seeks to repeal online sports betting entirely. Senate Bill 1033, introduced by Senator Joanne Benson, would eliminate online sports betting in Maryland by 2026, leaving only retail sportsbooks intact.
This move comes as a surprise, given that sports betting was overwhelmingly approved by voters in 2020 and has since contributed significantly to state revenues. In January 2025 alone, Maryland’s online sportsbooks handled $601.3 million in wagers, contributing over $8.1 million in taxes.
Since legalization in December 2021, sports betting has added $143.3 million to the Blueprint for Maryland’s Future Fund, which supports education.
The proposed repeal follows a similar bill in Vermont, where lawmakers claim that state-sanctioned gaming functions as
“a camouflaged form of regressive taxation”
that disproportionately harms low-income families.
However, Maryland’s tax structure directs the bulk of its revenue toward education, creating a sharp divide between concerns over gambling’s social impact and its financial benefits.
Tax Increases and Expansion: A Conflicting Vision
While some Maryland lawmakers aim to dismantle online sports betting, others are pushing for its expansion. Governor Wes Moore has proposed doubling the sports betting tax rate from 15% to 30%, aiming to increase funding for education and public services.
This mirrors trends in states like Illinois and New Jersey, which are also considering higher sportsbook taxes to maximize state revenue.
At the same time, Maryland legislators are weighing the introduction of online casino gaming (iGaming), with Delegate Vanessa Atterbeary’s House Bill 17 leading the charge.
However, this effort faces resistance from brick-and-mortar casino operators, who fear that digital expansion will cannibalize their businesses.
Industry experts caution that excessive taxation could push bettors toward offshore markets, undermining the state’s regulatory framework.
“Lawmakers are clearly uneasy about the proportion they receive from major sportsbook operators’ record-breaking incomes,”
one source noted, suggesting that a balance must be struck between regulation and keeping operators competitive.
The Reality of Sports Betting in Maryland
Despite concerns about its social impact, sports betting in Maryland has proven to be a major financial success. In January 2025, total wagers reached $618.8 million, with mobile platforms accounting for the vast majority.
Maryland betting apps alone generated $80.6 million in revenue before taxes, highlighting the dominance of digital betting over retail locations.
With such strong financial contributions, the proposed repeal of online sports betting appears at odds with the industry’s performance. While concerns about problem gambling and taxation persist, Maryland’s experience suggests that sports betting, when properly regulated, can serve as a vital revenue source without dismantling existing structures.
As lawmakers debate the future of sports betting in Maryland, they must grapple with a crucial question: Should they shut down an industry that has already proven its value or refine its structure to maximize benefits while addressing potential harms?
