The sports betting market in Maryland has thrived over the past two years but the state is also facing a $2.7 billion deficit for the upcoming fiscal year. Now, some legislatures are wondering if the industry can help address this issue.
The sports betting industry in Maryland set a record of $593 million in wagers in October 2024. With the numbers for November now available, the sector has once again reached a new record high. The wagers in the past month amounted to almost $640 million, marking the highest monthly handle ever recorded.
The figures regarding sports betting in Maryland have been steadily going up as more and more residents are getting involved in the activity and major sporting events continue to drive significant interest.
Marylanders have access to locally available sportsbooks, but for casino gaming, offshore sites are the only option at the moment. These sites are constantly attracting more attention as they offer players unique perks such as cryptocurrency deposits, instant withdrawals, and various bonuses.
The role of offshore casinos may increase even further as the state is openly discussing raising its sports 15% tax rate as a way to fight its $2.7 billion deficit for the upcoming fiscal year. If this change takes place, local sites may be forced to scale back their promotions and player perks, making offshore casinos even more appealing to bettors.
The tax revenue for sports betting has also reached a record high of almost $11.8 million in November, surpassing the previous record by over $2.4 million. However, this number may go up significantly should the proposed tax increase take effect.
Maryland isn’t the only U.S. state aiming to increase its sports betting tax revenue. In fact, several other states are looking to do the same with the most recent example being Louisiana, where a bill was recently proposed to nearly triple the tax rate.
The proposal in the Bayou State called for raising the tax on sports betting operators from 15% to 51%. Such a move would match New York and Vermont for the highest sports betting tax in the nation.
However, amid a strong pushback from the gambling industry, the bill in Louisiana was quickly deferred.
We can expect to see sportsbooks in Maryland react in the same way should the talks over tax increases continue, especially if the proposed hike turns out to be as aggressive as the one in Louisiana.
Another state in which discussions have been held over increasing sports betting tax is New Jersey. Earlier this year, Senator John McKeon introduced a bill that would see the tax for online wagering and online sports betting increase to 30% from 15% and 13%, respectively.
While the discussions over potential tax increases in Maryland have been ongoing, State Senator Johnny Mautz commented that he would not be inclined. He added that the sector is prospering and that the best thing to do would be to let it grow.
