Maryland Sports Betting Revenue Jumps Ahead of July Tax Shift

Sportsbooks generated approximately $47.9 million in revenue in Maryland, representing a 32.3% increase from May 2024. That said, the $179.3 million that was bet on parlays was up 27.2%. In May 2024, the hold on parlays was 25.7%, which is still high, but 1% less than May 2025.

The overall revenue reported is the fifth-highest in Maryland's history and is up nearly 30% from last year. There was also $51.6 million in taxable winnings, which was a 10.8% increase.

Sportsbooks in Maryland gave out over $13 million in promotions, which include bonus bets, welcome bonuses, and more. These reduce the taxable revenue. There was another $1.2 million in additional deductions from loss carryovers and the 0.25% federal excise tax.

In May 2025, Maryland collected $7.7 million in taxes on sports betting revenue. Now, through the first five months of the year (January to May), it's brought in $33.1 million in taxes, which marks an increase of $3.1 million compared to last year.

Starting July 1, 2025, the tax rate will increase to 20%, up from 15%. This comes after a proposed tax rate of 32%, but was negotiated down to 20%.

This new tax came after Maryland Governor Wes Moore, Senate President Bill Ferguson, and House Speaker Adrienne A. Jones announced the framework of the 2026 budget this past March. The budget was worth $67.3 billion, including $2.3 billion in cuts and $1 billion in new revenues. This increase comes as other states, such as Louisiana and Illinois, have increased their sports betting tax rates.

As of May 2025, Maryland ranks ninth in the country, with a total handle of $2.7 billion, ahead of Virginia at $2.59 billion and behind Massachusetts at $2.85 billion.

Examining Individual Sportsbooks

While Maryland doesn't report figures on a per-sport basis for individual operators, we can infer some data based on the parlay hold.

With the high parlay hold in May 2025, FanDuel likely did quite well. It had a 16.2% hold on a handle of $214.7 million. This would be a gross revenue of $34.7 million. This was the highest hold since 17.9% in January 2024 and marks the third time it's been above 15%.

DraftKings had $17 million or more in revenue for the second-straight month, claiming $17.8 million in May. It had an 11.3% hold from $157.5 million in wagers. It had a $3.5 million expenditure for promotions, which DraftKings was able to deduct credits and betting bonuses in January.

Fanatics had $4.5 million in revenue, a 13.5% hold, and its best month since it launched in Maryland. It spent $1.1 million on promotions. It was over $1 million for the ninth-straight month, but far less than the $1.8 million in March.

Then there's BetMGM. It had a 7.9% hold, brought in $3.4 million in revenue, and spent $1.3 million in promotions. Through May 2025, BetMGM has spent $7.4 million on promotions.

Overall, across 11 sportsbooks, there was $494.2 million in handle, $64.7 million in revenue, a 13.1% collective hold, and year-to-date mobile revenue is up to $310.8 million.