Maryland Considers iGaming as Leaders Seek More Tax Funds

Maryland is considering raising its taxes in an attempt to generate more money for education and transportation. Amid the discussions about these taxes’ potential economic impact, local leaders also suggested that the legalization of online gambling – a vertical that has proven to be a great driver of tax revenue – might be what the state needs.

These talks come as Maryland experiences more and more difficulties funding its K-12 education funding plan, Blueprint for Maryland’s Future. The plan was originally approved in 2020 as leaders aimed to provide more money to the education sector but has been affected by rising costs.

The Blueprint for Maryland’s Future budget is sufficient for the upcoming fiscal year but House speakers are already concerned about its funding in the years to come.

According to Democratic House Speaker Adrienne Jones, Maryland can no longer rely on “quick fixes or short-term approaches.” She suggested that such solutions are inevitable to lead to the same problems sooner or later. Instead, Jones believes that the state should prioritize generating more revenues and by extension, more tax money.

The new $1.3 billion House plan believes that online gambling might be the solution to Maryland’s problems.

Is Gambling the Solution to Maryland’s Financial Troubles?

The Maryland House is considering the legalization of iGaming as an attempt to procure more tax money for the Blueprint for Maryland’s Future budget. This will be no easy task, however, as the legalization of online casino gaming would require a constitutional amendment that needs approval from three in five voters from each chamber.

To make matters worse, the clock is ticking as this reform would need to be voted in November.

While online gambling might help Maryland secure more money, it is only a part of the solution. In addition, leaders want to raise the corporate tax, as well as the vehicle excise tax in an attempt to also address the transportation funding challenges. Registration fees may also change, as well as the requirements for a vehicle trade-in exemption. Representatives are also considering increasing toll taxes.  

While the plan addresses many of the current setbacks, Senators are concerned about its potential negative impact on the already struggling economy. Some suggested that this plan would put an additional burden on the people of Maryland.

Local leaders will have to discuss this matter and consider what budgeting changes might be needed by April 8 when the General Assembly adjourns.