Maryland Proposes Doubling Tax Rate on Sports Betting to 30%

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00:00Maryland, oh my gosh, are we surprised,

00:03wants to raise their tax rate?

00:0515% is what they got.

00:08Yeah.

00:09They're asking for 30, doubling the tax rate?

00:12Is this gonna pass?

00:15Who knows at this point, but yeah, this is something,

00:17you know, the industry has been kind of worried

00:18about the last two years since New York passed their,

00:23you know, legalized at 51% tax rate.

00:26The industry has been like, oh man,

00:27this could be bad for us in other states

00:30when they see what New York's bringing in.

00:31Because for the most part,

00:32states legalized sports betting at a nice,

00:34reasonable amount that the industry had liked

00:37and worked with legislators to propose,

00:39you know, somewhere around the likes of under 20%,

00:42you know, whether it's 15% in a lot of states,

00:45including Maryland or others.

00:47But since then, we've seen a lot of bills come in,

00:51including this year in Michigan and Louisiana.

00:54But in Maryland, we're seeing the governor come out

00:57and in his proposed budget,

00:59include doubling the tax rate, to your point,

01:01from 15% to 30%.

01:04And this is something we've seen in other states

01:06in the past, including Illinois last year.

01:08They went from 15% to a tiered system

01:11based on revenue from 20% to 40%.

01:13So the more you make, the more you get taxed.

01:17The year before that, just shortly after it launched,

01:19Ohio's governor, Mike DeWine, put in his budget

01:23another doubling from 10% to 20%.

01:25So they're still reasonable.

01:27But both of those passed the legislator

01:30when they went through the budget.

01:31And this is kind of where you look at Maryland,

01:34similar to how we've talked about Illinois'

01:36online casino proposal this year in the budget,

01:39which J.B. Pritzker did,

01:40Wes Moore is facing a $3 billion deficit in Maryland.

01:44So from that, you see this tax rate and say,

01:48maybe we do need to up it to get some more revenue

01:51from this tool that they instituted,

01:54mostly to gain more tax revenue.

01:56So that's where you're looking at Maryland.

01:58Does it pass?

01:59We're gonna see.

02:00This is kind of, it has to go through

02:02the whole entire legislative process,

02:04get passed from the House, get passed from the Senate.

02:08There's gonna be lots of talking about it.

02:10Who knows if they actually bring this up?

02:12This could be one of the things

02:13that gets put in the budget that just kind of slips through

02:15and isn't even really talked about.

02:17What also is interesting with that $3 billion deficit,

02:21is there more of an appetite for the online casino bill

02:24that we've seen introduced in Maryland,

02:27which of course last year passed the House,

02:30fell kind of on deaf ears in the Senate.

02:33Could this $3 billion deficit and this tax rate hike say,

02:36hey, maybe this gambling is a way to bring in more revenue.

02:40Let's do this,

02:40because we have a lot of money to make up in Maryland.

02:43So yeah, the tax rate, who knows,

02:45could be something that slips through.

02:48And then also it could have implications

02:49on the online casino bill there in Maryland as well.

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