Maryland generates $1.6 billion in gaming taxes in 2026

Maryland, though small in territory, is a significant player in the U.S. gambling industry. During the fiscal year 2026, it reached $1.6 billion thanks to gaming taxes, benefiting various public programs.

Casino Revenue and Its Impact

In 2025, Maryland ranked tenth nationally in the commercial casino sector. Its six casinos, led by MGM National Harbor, generated over $2.7 billion in gross gaming revenue (GGR). The state's high tax rates vary between 42% and 58% for slot GGR and 20% for table games, resulting in a significant fiscal return.

The Maryland Lottery and Gaming Control Agency (MLGCA) reported that the casinos contributed $822.2 million in taxes on slots and table games during the 12 months ending June 30, 2026. Of this, $599.1 million was allocated to the Education Trust Fund, $103.5 million for local support, $94.8 million to the horse racing industry, and $20.3 million to the Small Business and Minority Business Fund. Additionally, $4.5 million was directed towards responsible gaming programs.

Growth of Sports Betting

Despite concerns over prediction markets, tax revenue from sports betting reached a new record in fiscal year 2026. Online and physical sportsbooks in Maryland contributed $132.3 million, a 49% increase from the $88.9 million in the previous fiscal year. Mobile platforms share 20% of their GGR with the state, while retail operators are taxed at 15%, which is allocated to the Blueprint For Maryland's Future Fund.

Maryland Lottery Stays Strong

The Maryland Lottery experienced its third-best recorded year in fiscal year 2026, with sales nearing $2.7 billion. Instant tickets surpassed the $1 billion threshold for the fifth consecutive year. During the 12 months, players won $1.69 billion.

The total profit from the lottery was $681.6 million, with $532.5 million allocated to the General Fund for state programs, including public transportation, the Maryland Veterans Fund, and improvements to Camden Yards. Furthermore, 1,659 winning tickets of $10,000 or more were sold, along with 542 tickets of $50,000 or more. Sales and commissions to retailers totaled $199.5 million.

These figures demonstrate the economic relevance and positive impact of the gaming sector in the state, positioning Maryland as a leader among U.S. states.