Online Casino Revenue Excluded from Maryland Budget Killing 2025 Hopes

By John Isaac,
Editor at online-gambling.com

John Isaac Editor at online-gambling.com

John Isaac is an editor with many years of experience in the gambling industry. He writes expert articles on card games like blackjack and poker. In addition, he is also well aware of the US gambling laws and the Indian and Dutch gambling markets. You can rely on verified information and insightful details.

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Last updated: April 5, 2025

Bills to legalize online casinos in Maryland failed to cross over before the legislative deadline. Gov. Wes Moore excluded gaming revenue from his budget, killing all hopes of online casinos in 2025. Proponents for legal online casinos in Maryland will now have to wait until 2026 to review the matter again.

Lack of Momentum is Cause for Disaster

Sponsors of the legislation need to persuade an indifferent legislature and address the opposition they are getting from several gaming licenses in the state.

Del. Vanessa Atterbeary and Sen. Ron Watson renewed their efforts to advance the issue in the 2025 session, but neither successfully crossed over from their chamber of origin to the opposite chamber before the March 17 deadline.

Watson’s SB 340 was presented to a Senate committee in late January but gained no momentum. The bill proposed a voter referendum to allow sports betting operators and established gaming companies in Maryland to offer online casino games. Watson aimed to tax live dealer games at 20% and other approved games at 55%.

Atterbeary’s HB 17 also proposed a 55% tax on most iGaming. She stated that she introduced the updated bill to regulate and capitalize on the existing illegal online gaming market, which is valued at $7 billion annually.

Moore’s proposed FY26 state budget does not account for any new revenue from gaming expansion taxes, as suggested in HB 17 and SB 340. This signals his belief that such an expansion will not take effect.

Proposed Sports Betting Tax Hike is Restrained

Gov. Wes Moore has been pushing to increase the taxes imposed on sports betting and online casinos to help alleviate the state’s financial situation.

In January 2025, the initial draft of his proposed budget suggested doubling the online sports wagering tax rate from 15% to 30%. However, during a House Ways and Means Committee hearing chaired by Atterbeary, lawmakers approved a revised version that raised the tax more modestly to 20%.

The committee also rejected Moore’s proposal to increase the tax on casino table games from 20% to 25%. While the committee advanced the Budget Reconciliation and Financing Act, it must still pass through the legislature and be finalized by April 7, leaving room for potential changes.

Sweeps Ban Still Alive for 2025

Maryland Sen. Paul Corderman’s proposed ban on online casino games based on sweepstakes met the crossover deadline, receiving unanimous approval from the Maryland Senate on March 12. Meanwhile, the House Ways and Means Committee reviewed the House companion bill, but no action has been taken yet.

While banning such online gaming could potentially lead to regulated iGaming in Maryland, the legislature currently views the two issues as separate.