Although Maryland is relatively small, it plays a significant role in the U.S. commercial gaming landscape. The state’s gaming tax revenue is substantial, funding various public programs and services.
In 2025, Maryland ranked as the 10th largest state for commercial casinos. The state’s six gaming venues, prominently featuring MGM National Harbor, along with both retail and mobile sports betting, accumulated over $2.7 billion in gross gaming revenue (GGR).
Maryland boasts some of the highest gaming tax rates nationwide, requiring casinos to contribute between 42% and 58% of their slot GGR to the state, while table game revenues are taxed at 20%. This advantageous structure led to impressive results in the fiscal year 2026.
According to the Maryland Lottery and Gaming Control Agency (MLGCA), casinos contributed $822.2 million in taxes from slot machines and table games during the year ending June 30, 2026. This included $599.1 million directed towards the Education Trust Fund, $103.5 million in local assistance, $94.8 million supporting the horse racing sector, and $20.3 million for the Maryland Small, Minority, and Women-Owned Business Fund.
Additionally, casino taxes contributed $4.5 million towards responsible gaming initiatives.
Rising Sports Betting Trends
Even with worries that prediction markets might divert sports bets from state-regulated online systems, the MLGCA has reported record tax revenues from sportsbooks in FY26. The state received $132.3 million from both online and retail sportsbooks, representing a remarkable 49% increase over the $88.9 million garnered in FY25.
Mobile sportsbooks remit 20% of their GGR to the state, with 15% earmarked for the Blueprint For Maryland’s Future Fund. Retail sportsbooks face a lower tax rate of 15%, all of which benefits the Blueprint Fund.
Fantasy sports operators contribute 15% of their contest fees to the state, yielding just over $1 million in additional revenue.
Lottery Performance Remains Robust
The Maryland Lottery experienced its third-best year ever in FY26, achieving sales close to $2.7 billion. For the fifth consecutive year, sales of scratch-off tickets surpassed $1 billion, while lottery participants collectively won $1.69 billion over the year, averaging $4.6 million daily.
With a profit of $681.6 million, the Maryland Lottery allocated $532.5 million to the General Fund to assist various state programs and services. Lottery funds supported public transit projects, the Maryland Veterans Trust Fund, and upgrades to Camden Yards, home of the Baltimore Orioles.
There were 1,659 lottery tickets that won $10,000 or more, with 542 winning tickets reaching prizes in excess of $50,000. Retail sales and commissions amounted to $199.5 million, providing an average of $47,000 per retailer.