Gaming revenue contributes a significant sum to tax revenue for many states, and this is no different for Maryland. However, it has been reported that Maryland’s six casinos might not have performed as well as last year, with the total gaming revenue having seen a 5% drop for September 2025. Naturally, this decline will potentially have a negative impact on state finances, with there already being a decline in contributions to the ETF (Education Trust Fund). As such, it would seem the upcoming fiscal year is not off to a great start.
There could be a potential solution to this decline, with iGaming offering a large untapped stream of revenue. It could be argued that part of the reason for this decline is the emergence of out-of-state online casino and slots platforms where locals can play Sweet Bonanza and other similar games. Players get access to free spin bonus rounds, a huge payout potential, wide betting varieties, and high RTP (Return-to-Player) and volatility. Living in a digital era means accessibility and convenience are more important than experience; hence, these platforms are trending.
However, Maryland regulators have come to this conclusion on their own and have been making efforts to legalize iCasinos by 2026. Not only will this decision help stabilize and grow the state’s tax base, but it will build the path to consumer safety through in-state oversight and regulation. Currently, the total decrease in casino contributions to state coffers fell by 10.7% YOY, standing at $64.95 million for September. Adding iGaming to this revenue could see the growth increase by double, just based on how well states where this practice is legalized are performing.
The ETF was established to provide supplemental funding to Maryland public schools as a means to better the quality of education learners are receiving. The program is funded mainly through gaming revenue, but it seems it has run into an issue with the $5.6 million decline it experienced compared to September 2024. This means the program is running at a loss of 10.7%, receiving only $46.8 million as opposed to the average $52 million it should be obtaining. If this number continues to decline, will the state still be able to keep funding the program on its current scale, or will potential cost-cutting need to happen?
When looking at this decline through the lens of the broader 2026 Fiscal Year, it is apparent that Maryland is already off to a poor start. In just the first quarter, casino revenue is down by 3.1% while contributions have seen a decline of 2.3% between 1 July and September 30. Although these might not seem like significant figures on paper, they create a severe ripple effect across the board. Local communities, public education, and the state’s horse racing industry are all impacted by these cuts, and it is only a matter of time before the consequences become tangible.
Breaking down each casino’s performance can significantly help in understanding where this decline might have occurred. For one, MGM National Harbor in Prince George’s County contributed to the statewide loss the most, with a whopping 5.6% decline. This means the casino suffered over $3.7 million, the largest dollar amount loss in the entire state (and amongst the other casinos). In comparison, Anne Arundel County’s Live! Casino & Hotel saw the biggest percentage drop with 7.8% (a loss estimated to be over $4.6 million) despite being a top-tier venue. Historically, these casinos have performed well, but the sudden decline can be attributed to a number of reasons.
As mentioned, the rise of online gambling could be stealing a large number of customers from the venues, showing a noticeable decline in consumer traffic. Even more, the rise of other casinos (even those in neighboring states) could greatly change the standard daily traffic. If a nearby casino has opened up, and it potentially has better game offerings or other unique services, more customers would flock towards the newer casino. Another contributor might be a general decline in consumer spending due to inflation, which also comes back to a decrease in customer traffic. With prices going up and salaries staying the same, there is not much room for consumers to spend on luxuries or gaming.
On a larger scale, persistent inflationary pressures mean locals are not only forced to cut entertainment spending from their budgets, but also account for resources lost. The total gaming revenue helps in supporting larger communities where vital facilities and amenities are located. Small, minority, or women-owned businesses also get funding through these mandated contributions, and the ripple effect could negatively impact them as well. In conclusion, this dip in revenue is not just a government issue, but one locals should be concerned about, as well.
