MARYLAND - The state of Maryland is cashing in on mobile sports betting, as the industry marks two years.
This major revenue generation comes as the state faces a 2.7 billion dollar deficit in the next fiscal year. The industry has raked in $116M in tax revenue, with the majority of that coming from mobile bets.
Currently, Maryland taxes mobile sports earnings at 15%. Other states have increased their tax rates since the industry's inception. That could be one way the state looks to dig itself out of that budget deficit.
But Eastern Shore State Senator would not support that. Senator Johnny Mautz, who represents Talbot, Caroline, Dorchester and Wicomico Counties says to let the industry grow.
"We have plenty of taxes, plenty of fees, so I would not be inclined. I'm not going to be supporting new taxes on the online gambling. This is a new venue, a new area of business, it's prospering, it's doing well. Let it grow, let it grow," he said.
State Senate President Bill Ferguson has said "everything is on the table" when it comes to tackling the deficit in the next legislative session.
John Martin, Director of Maryland Lottery and Gaming says the industry's first two years have proven successful.
"When you look at where we are and where we may be in the years ahead, its difficult to even fathom a guess as to how things evolve in the future, but based on where we are I think we're very pleased overall as to how things have gone so far," he said.
Martin says any talk of an increase on taxes for sports wagering earnings is "above my paygrade."
"Our role really is to implement what comes from the General Assembly by the end of April and we'll move forward from there," he continued.
The overwhelming majority of sports betting earnings in Maryland contribute to the Blueprint for Maryland's Future, an education plan. That program is also the largest contributor to the state's budget deficit.
Another avenue of generating revenue in the gambling space could be online gaming like blackjack. Legislation last session proposed introducing online gambling in the state, but did not pass. Senator Mautz says he anticipates that to be brought back into discussion in Annapolis in 2025.
