Maryland mobile sportsbooks face tax hike
Maryland Governor Wes Moore is proposing to tax online operators between 15% and 30% as part of the 2026 state budget.
Moore and the Maryland General Assembly have come to the agreement, which aims to tackle the state’s US$3 billion deficit, according to reports.
Maryland’s popular sportsbooks, FanDuel and DraftKings, are already feeling the ramifications, warning bettors that the tax increase could affect promotions and bonuses.
Independent and local sportsbook operators, like Crab Sports, are also unhappy with the proposal, saying that they would bear the brunt of the tax increases.
Crab Sports Co-Founder and Chief Executive Derek Baker said, “A significant tax hike would disproportionately impact smaller operators like us, limiting our ability to offer the promotions, odds, and bonuses that bettors have come to expect.”
In response to WBOC’s reporting of the 2026 tax budget, Moore’s office said, “The governor will continue to work with the state legislature, local leaders, and all partners involved to ensure that we pass a budget that will give middle-class families a break, grow our economy, and protect and invest in our people.”
Yet, Maryland Delegate Wayne Hartman told WBOC that he doesn’t believe that the tax hike will significantly affect sportsbook operators, saying, “My understanding is it’s going to come back looking somewhat different. Maybe in the 20% range, we know it’s going to be increased, to what extent I can’t commit to right now.”
Deutsche Bank analyst Carlo Santarelli warned in January that the tax hikes could rattle operators, while Truist Securities analyst Barry Jonas expressed concern that other states might follow suit.
Charlotte Capewell brings her passion for storytelling and expertise in writing, researching, and the gambling industry to every article she writes. Her specialties include the US gambling industry, regulator legislation, igaming, and more.
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