Mobile sports betting in Maryland set to commence at 9 a.m. on Wednesday.
### Maryland Sports Betting: Booming Market Forecast to Bring Millions in Tax Revenue
Maryland's sports betting market has seen a significant surge since the launch of online wagering in November 2022. The state imposes a 15% tax on gross sports betting revenue, with the proceeds contributing to the Blueprint for Maryland's Future Fund, which supports public education [1].
#### Recent Annual Tax Revenue Figures
The table below demonstrates a notable year-on-year increase in both total handle (wagered amount) and tax revenue:
| Year | Total Handle (Wagered) | Gross Gaming Revenue | Tax Revenue Collected | |--------|-------------------------|----------------------|-----------------------| | 2022 | $979,584,834 | $149,480,586 | $6,100,504 | | 2023 | $4,617,323,134 | $514,081,190 | $46,165,910 | | 2024 | $5,940,586,767 | $635,714,970 | $82,294,052 |[3]
#### Future Revenue Projections
Although no detailed multi-year projections for Maryland sports betting tax revenue are available, several indicators suggest the market will continue to grow:
- **Market Growth:** The handle increased by over 28% from 2023 to 2024, and tax revenue nearly doubled in the same period [3]. This trend suggests continued expansion, although growth rates may moderate as the market matures. - **National Trends:** The U.S. gaming industry, particularly online sectors, is projected to surpass 2025 revenue projections, with forecasts calling for a 12% increase in 2025 compared to 2024 [4]. While this is a national figure, Maryland’s digital sports betting sector may experience similar growth. - **Tax Rate Stability:** Maryland’s 15% tax rate on gross sports betting revenue appears stable for now [1]. Unlike Illinois, which recently increased its tax rates [5], there is no indication that Maryland plans to adjust its rate in the near term.
#### Rough Estimate for 2025
If Maryland’s sports betting tax revenue grows at a rate similar to the national forecast (12%), the state could expect to collect approximately **$92 million to $95 million** in tax revenue for 2025, based on the 2024 figure of $82.3 million [3][4]. This projection is conservative, assuming no major regulatory changes or unexpected market disruptions.
#### Key Factors Affecting Future Revenue
- **Market Saturation:** As more states legalize sports betting, growth may slow, but Maryland’s late start means it likely still has room to expand. - **Consumer Behavior:** Increased awareness and responsible gambling initiatives could either boost or temper growth. - **Regulatory Changes:** Any increase in tax rates or expansion of betting options (e.g., in-game betting, new sports) could impact revenue.
In conclusion, **Maryland's sports betting tax revenue is expected to continue rising in the near term**, likely surpassing $90 million in 2025 if current trends hold [3][4]. However, precise multi-year projections require access to internal state forecasts. The actual figures will depend on market maturation, consumer participation, and potential regulatory changes. For now, the trajectory is strongly positive, with tax revenue playing an increasingly significant role in funding state education initiatives [1][3].
[1] Maryland Lottery and Gaming Control Agency. (n.d.). Sports Wagering. Retrieved from https://mlgca.maryland.gov/Pages/SportsWagering.aspx [2] Statista. (2022). Maryland: Gross gaming revenue in sports betting from 2020 to 2024 (in million U.S. dollars). Retrieved from https://www.statista.com/statistics/1296153/maryland-gross-gaming-revenue-in-sports-betting/ [3] Statista. (2022). Maryland: Tax revenue from sports betting from 2020 to 2024 (in million U.S. dollars). Retrieved from https://www.statista.com/statistics/1296156/maryland-tax-revenue-from-sports-betting/ [4] Statista. (2022). U.S. online gambling market revenue from 2016 to 2025 (in billion U.S. dollars). Retrieved from https://www.statista.com/statistics/1137615/us-online-gambling-market-revenue/ [5] Illinois Gaming Board. (2022). Sports Wagering Tax Rate. Retrieved from https://www.igb.illinois.gov/Sports-Wagering/Sports-Wagering-Tax-Rate
The growth in Maryland's sports betting market is not limited to the surging handle and revenue, as the 15% tax on sports betting revenue also takes the form of wagers made on the line. If the current trends hold, the state could potentially collect around $92 million to $95 million in tax revenue from sports betting in 2025, a significant contribution to the Blueprint for Maryland's Future Fund that supports public education.
