Will Sportsbooks Exit Maryland With One Hundred Percent Proposed Tax Increase?
The state of Maryland is ready to pull the trigger on a significant tax increase on sports betting apps that will be among the highest in the nation.
That new proposal calls for an increase to 30% from 15% on operators.
In an effort to reduce the state’s $3bn deficit, Maryland Governor Wes Moore has put forth a budget plan that would raise state taxes on Maryland’s casino table games, according to an Associated Press report.
The casinos get off a little easier with a tax rate rising from 20% to 25%.
Governor Moore’s plan aims to bring in close to $987m in revenue.
Whether all the sportsbooks can afford to pay the increase remains to be seen.
Powerhouses like DraftKings, FanDuel and BetMGM have shown a willingness to pay more in taxes in states like Pennsylvania and New York. But Maryland is no New York. The Empire State's population was estimated to be 19,795,791 compared to Maryland's population of 6.16 million. Eleven sportsbooks currently hold licenses in the state.
During a recent news conference, Moore said in a statement, “And Marylanders who have done exceptionally well financially, we’re going to be asking to contribute a little bit more so we can make targeted investments in economic growth and targeted investments in public safety and targeted investments in education.
Moore’s plan would require state legislator approval to move forward.
The Maryland Lottery and Gaming released its sports betting report for the month of December. Sports wagering last month generated nearly $6.5m in contributions to the state.
Players throughout the state wagered nearly $637.3m last month, an increase of 13.8% year-over-year.
Nearly $619.5m in bets came from wagers placed online, while $17.8m in bets were placed at land-based casinos.
This all comes as Maryland regulators sent out cease and desist letters to unregulated gambling operators, some of which reside offshore while others are based within the United States and operate sweepstakes casinos. Stake.US and McLuck were among those issued warnings.
One offshore sportsbook operator tells Gambling911.com that, while they are not closed to the Maryland market, they discourage affiliates from promoting their brand in the state. Another, Bovada, has long restricted resisident of Maryland from opening accounts.
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