Maryland Bill Proposes Ban on Online Sports Betting

Can Maryland afford to lose millions in tax revenue from online sports betting? A new legislative proposal, Senate Bill 1033, seeks to eliminate online wagering by January 2026, citing social concerns and regulatory challenges. With online betting generating over $12.2 billion in wagers and $143.2 million in tax revenue, the bill’s impact could be far-reaching. Will lawmakers prioritize consumer protection, or will economic considerations prevail?

Maryland Senator Introduces Bill to Ban Online Sports Betting by 2026

Key Points:

1. Senate Bill 1033 Seeks to End Online Sports Betting by 2026

   • The bill, introduced by Senator Joanne Benson, would allow retail sportsbooks to continue operating but eliminate online betting.
   • Licensed operators impacted by the ban would be eligible for partial refunds on their application fees.

2. Potential Revenue Loss and Budget Shortfalls

   • Online sports betting contributed $54.8 million in state tax revenue in just seven months of the latest fiscal year.
   • A ban could significantly reduce funding for public education initiatives, including the Blueprint for Maryland’s Future program.

3. Concerns Over Consumer Behavior and Black Market Growth

   • The bill does not address potential increases in illegal gambling if online sports betting is banned.
   • Without legal online options, bettors may turn to unregulated offshore sportsbooks, reducing tax revenue and consumer protections.

Maryland Lawmakers Consider Ending Online Sports Betting

Maryland’s gambling industry may face a major shift after Senator Joanne Benson introduced Senate Bill 1033 (SB 1033), aiming to ban online sports betting by January 2026.

If passed, the bill would prohibit all mobile and online betting platforms while allowing retail sportsbooks to continue operations.

The move has sparked concerns among industry stakeholders, as online sports betting has quickly become a significant source of tax revenue for the state.

Since Maryland legalized sports betting in 2020, the industry has expanded rapidly. By January 2025, total wagers had surpassed $12.2 billion, with $143.2 million in tax revenue going toward public programs.

A major beneficiary of these funds has been the Blueprint for Maryland’s Future, an education initiative designed to improve public schooling across the state.

However, if online betting is eliminated, Maryland could face a significant funding gap, forcing policymakers to find alternative revenue sources.

Senator Benson has not yet provided a detailed rationale for the bill, nor has she addressed concerns about illegal gambling potentially rising in response to a ban.

Economic and Social Concerns at the Core of the Debate

The proposal reflects growing concerns among some lawmakers about the social impact of gambling, particularly in lower-income communities.

However, critics question why the bill does not target land-based sportsbooks or casinos, which continue to generate substantial revenue.

Some legislators argue that state-regulated gambling functions as a regressive tax, disproportionately affecting households with fewer financial resources.

Governor Wes Moore has instead proposed doubling the state’s sports betting tax from 15% to 30%, rather than eliminating online betting entirely.

If SB 1033 is passed, the increased tax would apply only to retail sportsbooks, reducing its overall financial impact.

Could a Ban Fuel the Black Market?

A key concern among industry experts is that banning online sports betting could push bettors toward illegal markets.

• Offshore sportsbooks operate without consumer protections, meaning Maryland residents could be exposed to fraud and unfair betting practices.
• The state would lose significant tax revenue as bettors turn to unregulated platforms.
• A similar trend has been observed in other states with limited legal betting options, where black-market gambling has flourished.

Some policymakers worry that the unintended consequences of an online ban could outweigh any perceived benefits.

Could SB 1033 Derail Maryland’s iGaming Expansion Plans?

The proposed bill also raises questions about Maryland’s broader approach to gambling regulation.

Maryland has recently been considering legalizing online casinos, following the success of sports betting. However, SB 1033 suggests there may be strong legislative opposition to expanding iGaming in the state.

If the ban moves forward, online casino legislation may face significant hurdles, as lawmakers express concerns over gambling addiction and consumer protections.

Maryland’s Ban Mirrors Vermont’s Efforts to Repeal Gambling Laws

Maryland is not alone in reconsidering its stance on online betting.

In Vermont, lawmakers have introduced House Bill 133 (H 133), which seeks to repeal both the state’s sports betting and lottery laws.

• If passed, individuals caught gambling illegally could face fines up to $2,000 or jail time.
• Vermont’s gaming industry has drawn significant participation from out-of-state players, accounting for nearly 40% of total betting activity.
• The bill is currently under review by the state’s Committee on Government Operations and Military Affairs.

The parallels between Maryland and Vermont suggest a growing movement to re-evaluate the role of legalized gambling in state economies.

What’s Next for Maryland’s Online Betting Industry?

As SB 1033 moves through the legislative process, debates will likely focus on three key areas:

1. Revenue Replacement: If online sports betting is banned, how will Maryland offset the loss of tens of millions in tax revenue?
2. Illegal Market Risks: Will banning online platforms push bettors toward unregulated offshore sportsbooks?
3. Future of iGaming: Does SB 1033 indicate broader opposition to online gambling expansion in Maryland?

For now, the fate of Maryland’s online sports betting industry remains uncertain.

Maryland Faces High-Stakes Decision on Online Sports Betting Ban

Maryland lawmakers must weigh the social concerns of online gambling against the economic benefits of a regulated market.

With millions in tax revenue at stake, the debate over SB 1033 will test the state’s commitment to balancing consumer protection and financial stability.

As the bill moves forward, industry leaders, policymakers, and residents will watch closely to see whether Maryland embraces regulation or retreats from online gambling entirely.