Maryland’s mobile sportsbooks may soon be affected by a tax increase introduced in the state budget for 2026.
Governor Wes Moore and the Maryland General Assembly have agreed upon a framework for the state budget, which aims to tackle the state’s $3 billion budget deficit. Maryland lawmakers would introduce new taxes and significant cuts to state spending in the proposed framework.
Part of the tax hike would see Maryland sportsbooks be taxed between 15% and 30%, much to the dismay of operators in the state. Popular sportsbooks like DraftKings and FanDuel are already warning players about the possible ramifications of a tax increase, while independent sportsbook operators feel disadvantaged.
“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,” said Derek Baker, Co-Founder and President of Crab Sports.
In response to how Maryland plans to tackle the state’s budget deficit, Governor Moore’s office provided WBOC with the statement, “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.”
However, Maryland Delegate Wayne Hartman told WBOC that he didn’t believe the tax hike on sportsbook operators would be that extreme.
“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,” said Hartman.