Legislative Updates in the US Gambling Industry
The gambling industry in the United States continues to experience legislative changes. This week, discussions include a proposed tax increase in Maryland, efforts to legalise online casinos in Wyoming and Indiana, and a bill targeting “sweepstakes games” in New Jersey.
Maryland: Proposed Tax Hikes on Sports Betting and Table Games
In Maryland, supporters of online gaming expansion have announced plans to reintroduce legislation advocating for its legalisation. On Wednesday, 15 January, Governor Wes Moore unveiled his annual budget, which includes proposals to raise the tax rate on sports betting from 15% to 30%. Additionally, the tax on table games in casinos is set to increase from 20% to 25%.
These proposals come as other states, such as Ohio and Illinois, have recently increased their sports betting tax rates. Notably, Ohio adjusted its rates less than a year after the first legal wagers were placed.
New York’s Influence
New York’s significant revenue from its 51% tax rate on sports betting has drawn attention across the US. In 2024, New York collected over $1 billion in taxes, stemming from $2 billion in gross gaming revenue and $22.6 billion in total wagers. While Maryland’s revenue potential cannot match New York’s scale, the current 15% tax rate is below national averages. However, a jump to 30% would place Maryland among the higher tax jurisdictions.
New Jersey: Regulating Sweepstakes Games
In New Jersey, Assemblyman Clinton Calabrese introduced a bill this week aimed at regulating “sweepstakes” games. Under this legislation, sweepstakes casinos would be classified as internet gaming, requiring licensing, oversight, and taxation in line with the state’s existing internet gaming laws.
Future Prospects
Legislative activity in the gambling sector continues to evolve across the US. Further initiatives, including tax hikes and the legalisation of new gambling formats, are anticipated in the coming months.
