Maryland starts 2026 with uptick in collected taxes in January

• While the betting handle was on par year-over-year, Maryland recorded an uptick of 32.6% in the contributions from the activity
• Fiscal year to date results were also strong, newly released data reveals
• The uptick in the collected taxes is the result of an increase in the percentage payable by licensed betting operators

Maryland's sports betting sector recorded a strong start of 2026 with contributions to the state increasing by more than 30% year-over-year in January.

The increase follows a change to the taxation implemented by lawmakers in the summer.

Maryland betting taxes hit $11m in January

Data from Maryland Lottery and Gaming, the state's gambling regulator, reveals that the betting handle reported by licensed retail and mobile betting operators last month was on par year-over-year.

The total wagering handle halted at $615.8m, a result that shows a marginal decrease of 0.5% when compared to the $618m wagering handle reported during the same period in 2024.

A breakdown provided by the gambling watchdog reveals that bettors collected $539.1m in prizes during January, while promo play last month was $20.3m.

Importantly, the contributions by licensed retail and mobile betting operators in Maryland increased in January.

In total, Maryland collected $10.9m in contributions, a figure that points to a significant increase of 32.6% when compared to the $8.2m result from January last year.

According to the Maryland Lottery and Gaming data, fiscal year to date results also recorded a significant increase.

In FY2026, the state hit $4.16bn in betting handle, marking an increase of 11.4% when compared to the corresponding FY2025 result.

Not unexpectedly, the contributions to the state increased as well.

Per the report, FY2026 contributions to Maryland skyrocketed by 63.3% to $89.5m.

This result marks a strong increase, considering that in FY2025, contributions to the state halted at $54.8m.

It is worth noting that Maryland increased the percentage of contributions applicable to mobile betting operators last summer.

The change increased the contributions by licensed betting operators from 15% to 20%, effective from June 2025.

Based on the latest figures, the change is already bringing benefits with notable growth in the state tax revenue collected month after month.

Image credit: Pixabay.com