1. Maryland State Gambling Tax Penalties
2. Maryland State Tax On Gambling Winnings
3. Maryland State Gambling Tax Refund
4. Maryland State Gambling Tax Forms
5. Maryland State Gambling Tax Filing

Maryland’s gambling taxes apply to residents and non-residents. If you win big ($5,000+), the gambling establishment will automatically withhold the taxes from your payout check. Maryland requires all winners of more than $500 to file Maryland Form 502D within 60 days of the time you receive the prize money. Maryland Gambling Tax Revenue Surpass US$1.3 Billion in 2019. Published by Jenna Trujilo August 14, 2019 Categorie(s): Casino News. Some recent statistics released by the Maryland Lottery and Gaming Control Agency has revealed that the state has garnered more than US$1.3 billion in tax revenue from gambling-related sources, such as casinos and the state lottery. Maryland State Sen. Craig Zucker sponsored a sports betting bill that was tabled when COVID cut the legislative session short. He points to a nonpartisan study, saying sports gambling could raise.

BALTIMORE - Gov. Martin O’Malley looked into the camera in 2012 and told his audience that expanded casino gambling would mean “hundreds of millions of dollars for our schools.”

The upcoming referendum on gambling had propelled Maryland’s schools into the spotlight of a multimillion-dollar campaign where supporters touted the message that more gambling would be a win for education.

But the measure, approved by voters that fall, has actually worked to send more money to the casino companies this fiscal year than to the education fund that was established when the state first legalized casino gambling in 2008.

The 2008 law set up an Education Trust Fund to receive the lion’s share of gambling revenues from slots at five new casinos: About half of the slots revenue went directly to the education fund and an additional 18.5 percent to other state programs. The casino companies generally kept no more than 33 percent.

But the 2012 law included concessions for the companies to ease their concerns over the addition of a mega-casino in Prince George’s County. The legislation allowed all casinos to add lucrative table games, such as poker, craps and roulette. And it allowed the companies to keep 80 percent of the table game proceeds -- while also reducing the share of slots money that goes to the education fund.

As a result, casino companies have kept more than $334 million of the revenues so far this fiscal year while the Education Trust Fund has gotten close to $270 million -- marking the first time since casinos opened in Maryland that more of the gambling proceeds will go to the casino companies than to the education fund.

And while expansion of gambling has raised more money overall both for casinos and the education fund, the money in the Education Trust Fund has replaced -- not added to -- general fund revenues normally spent on schools.

O’Malley, Senate President Thomas V. “Mike” Miller Jr. and House Speaker Michael E. Busch all declined to comment on the Capital News Service findings, according to their spokespersons.

The casino revenue is “helpful, but it’s not helpful in the way that some politicians have claimed it’s helpful,” said Charlie Cooper, secretary of the Maryland Education Coalition.

“If we get $300 million in casino revenues, it doesn’t increase school funding by $300 million, and in fact, it may not increase school funding at all.”

“A fiscal fairy tale”

Comptroller Peter Franchot made a prediction in 2008, with the question of legalizing casino gambling before Maryland voters:

“Slots are a fiscal fairy tale,” he said. The plan “will not produce one dollar of new spending for education, and I encourage everybody to understand that this industry is a shady and sleazy practice.”

The plan to legalize slots had come from an unlikely source. O’Malley had spoken out against gambling proposals as mayor of Baltimore. But when he became governor in 2007, Maryland faced a $1.7 billion structural deficit in the midst of an increasingly dismal economy.

He called for a special session that fall to address the state’s budget woes, announcing plans to generate revenue through tax reform and the authorization of slot machines in five casino locations around the state.

But he had to win over lawmakers who blocked attempts to legalize casino gambling under former Gov. Robert L. Ehrlich Jr. So O’Malley recommended that the legislature approve a plan for legalization and then put it up for a vote at referendum. He also increased the number of slot machines in his proposal to 15,000 from 9,500, appeasing slots supporters not thrilled about the added step of a referendum.

After contentious debate, the deal that emerged from Annapolis was one that taxed casinos at among the highest rates of any state in the nation. Maryland would keep about 67 percent of the revenue from slots, with most -- roughly half of all casino revenue -- going to an Education Trust Fund dedicated to schools.

The Maryland Chamber of Commerce and AFSCME, the American Federation of State, County and Municipal Employees, threw their support behind the slots measure -- as did the gambling industry. Pro-slots groups outspent opponents 7-to-1, with the Laurel Racing Association and Penn National Gaming contributing a combined $5 million to the total $7.1 million spent on supporting slots.

The Maryland teachers union voted to endorse the measure too, after Miller, the Senate president and a leading slots advocate, warned the union that education spending could face significant cuts if the slots measure failed and the state’s budget trouble continued.

On Nov. 4, 2008, Maryland residents approved the slots measure with nearly 59 percent of the vote.

A package of tax breaks

Before even one of the original five casinos had opened, Maryland lawmakers began weighing the question of expanding casino gambling.

Miller, a Democrat from Prince George’s County, announced an interest in early 2010 in adding a sixth casino there. Not long after, the state panel charged with awarding the casino licenses recommended that lawmakers consider allowing table games to help Maryland compete with gambling in surrounding states. Pennsylvania, Delaware and West Virginia had all moved to allow table games after Maryland passed its slots-only measure in 2008.

In June 2012, MGM Resorts International announced its interest in building a casino at the National Harbor in Prince George’s County, if presented with an acceptable deal -- which included a lower tax rate and table games.

O’Malley called a special session the following month to debate a gambling expansion that would include a sixth casino and Las Vegas-style table games.

But lawmakers met with fierce resistance from some of the companies holding Maryland casino licences, especially the Cordish Cos., owner of Maryland Live! Casino in Anne Arundel County.

Company representatives complained that the proposed sixth casino would be an unexpected, and unwelcome, source of competition that would diminish its customer base and hurt its bottom line.

So, the legislature offered tax breaks to the companies.

Casino companies would get to keep 80 percent of table game revenue and give 20 percent to the Education Trust Fund. The education fund’s share would drop to 15 percent in 2017, when the local governments that host casinos would begin receiving 5 percent of table game revenue.

The education fund’s share of slots revenue would shrink too.

The General Assembly passed the measure, sending it to a referendum as required by the 2008 slots law.

MGM, with its eye on the sixth casino license, gave close to $41 million to the rival, pro-expansion group, For Maryland Jobs and Schools.

Penn National Gaming, with casinos in West Virginia, Pennsylvania and Perryville, Md., led the opposition, spending more than $44 million, according to the National Institute on Money in State Politics.

The teachers union took no position.

After the most expensive campaign in state history -- totalling more than $94.9 million -- the referendum passed with 51.9 percent of the vote.

An “outrageous” break

Sen. James Brochin, D-Baltimore County, in a recent interview said he supported legalization in 2008 but voted against the expansion bill because he thought the state was giving far too much away to the casinos as part of the compromise.

“The tax break that we gave the casino operators was outrageous,” he said.

Maryland Lottery and Gaming Control Agency officials say that granting casino companies a bigger share of the revenue from table games makes sense because those games cost more to operate than slot machines, with additional expenses including pay for dealers. The casinos also received breaks for taking over ownership of the slot machines from the state.

Additionally, a lower tax rate allows casinos to invest more in marketing and promotional programs that bring in more customers and more money, said Will Cummings, of Cummings Associates, which did a study for the state gambling agency.

In fact, casino revenues have soared since table games debuted in Maryland last spring, sending more total dollars to the state as a result.

Even so, Brochin argues, the state is taking in millions of dollars less than it should be.

As a result, the casino industry has pushed ahead of the education fund as the biggest beneficiary of state-sponsored gambling in Maryland.

The amount of revenue going to casino operators each month of fiscal year 2014 has surpassed the amount going to the Education Trust Fund. For the first time since Maryland legalized casinos, the casino companies are on track to take in more money this fiscal year than the Education Trust Fund.

“It was just bad public policy,” Brochin said.

Replacing, not supplementing, funds for schools

For Maryland schools, the argument over how much should go to casinos versus the education fund has been strictly academic so far.

Neither the 2008 nor 2012 legislation specified that the state should spend more on education with the gambling revenue. And the legislature hasn’t.

Since the first casino opened in Maryland, almost $700 million gambling dollars have gone into the Education Trust Fund. But lawmakers have used that money to replace rather than increase general fund revenues normally spent on schools. In other words, they have used it to free up general fund money for other purposes.

While the state’s education budget has fluctuated, that has been due largely to other factors like federal contributions.

There’s another reason the casino money has had little obvious impact on schools: Last year’s education budget totaled more than $7 billion, with the $285 million in the Education Trust Fund accounting for just a small fraction.

Still, education advocates have a list of things the extra money could be used for, from expanding access to high-quality pre-K to improving mental health services at schools.

“I certainly understand the position the state was in for several years, but I think now is the time to really go back to this and take a look,” said David Beard, the education policy director at Advocates for Children and Youth in Baltimore. “Are we just supplementing dollars and supplanting or are we really using this for opportunities to improve education and educational outcome?”

• Year Maryland Regulated Gambling: Racing (1870), Lottery (1972), Bingo (1952), Casinos (2008)
• Estimated Tax Revenue from Gambling: $900 million
• Estimated Gambling Revenue: $2.8 billion
• Maryland Gambling Age: Bingo, racing and lottery: 18 Casinos: 21
• Smoking ban: Smoking is not permitted in any indoor businesses in Maryland.
• Maryland Online gambling: Horse racing

While Maryland casinos were legalized later than other states in the region, is has no aversion to gambling. Horse racing dates back to the 19^th Century. The regulation was originally left up to the city governments before pari-mutuel betting went online early in the 20^th Century. The state permits charities to offer bingo and other games of chance.

Maryland casinos were not approved until 2008. Resort casinos and some racetracks may offer Atlantic City style gambling.

Paying Gambling Taxes in Maryland

Do you have to pay taxes on your gambling winnings? OnlineUnitedStatesCasinos has gathered everything you need to know about paying taxes straight from a Certified Public Accountant. For more information please visit our exclusive Gambling Taxes article.

Maryland Casinos Map & Guide

• Rocky Gap Casino
• Horseshoe Casino
• Hollywood Casino
• Maryland Live!
• MGM National Harbor

• Number of B&M Casinos: 5
• Number of Poker Rooms: 4
• Number of Indian Casinos: 0

• • Huge Welcome Bonus Package
  • Visa and MasterCard Payment Options Available for US Players
  • Over 150 Real Money Online Slot Games

  Compatible with:

  • windows
  • apple
  • android
  • mobile
• • Safe and Reputable Casino, Mobile Friendly
  • Easy Credit Card Deposits for US Players
  • Impressive Welcome Bonuses up to 260% match

  Compatible with:

  • windows
  • apple
  • android
  • mobile
• • Quick USA Payouts, Credit Cards Accepted
  • Great Selection of Slots & Table Games
  • Legit & Reputable Mobile Friendly Casino

  Compatible with:

  • windows
  • apple
  • android
  • mobile
• • Uses the Microgaming Software
  • Fast Cashouts in Just 1-7 Days
  • Online, Mobile, Instant & Live Play

  Deposit Options include:

  • visa
  • mastercard
  • paypal
  • neteller

  100% up to €1,000
• • Big Jackpots and Massive Deposit Bonuses
  • Over 400 Online Casino Games
  • Play Live Dealer Games

  Deposit Options include:

  • visa
  • mastercard
  • paypal
  • bitcoin

  100% up to €1,600
• • Large Australian Bitcoin-Friendly Casino
  • Mobile, Flash, and Download Play Options
  • Fastest Payouts

  Deposit Options include:

  • visa
  • mastercard
  • paypal
  • neteller
• • Safe and Trustworthy Australian Casino
  • Multiple Daily Deposit Deals
  • 100s of Pokies, Slots, and Table Games

  Compatible with:

  • windows
  • apple
  • android
  • mobile

Types of Maryland Online Gambling Allowed

There are two forms of legal Maryland online gambling. Off-track horse racing is permitted on apps and registered websites. The main companies that accept this type of pari-mutuel action are TVG, XpressBet, and TwinSpires.

Maryland wanted to legalize fantasy sports by the end of 2015, but was repealed by state legislation in 2016. The state adopted language in the federal Unlawful Internet Gambling Enforcement Act that exempts fantasy sports. This is thought to give the green light to daily fantasy sports sites like DraftKings, FanDuel, Yahoo!, and CBS Sports. Even the most conservative daily fantasy sites accept players from Maryland.

Types of Live Maryland Gambling

• Slots: Yes
• Blackjack: Yes
• Poker: Yes
• Craps/Roulette: Yes
• Horses: Yes
• Lottery: Yes

Horse racing is the oldest form of Maryland gambling. There were once six tracks in the state. There are now just two that offer scheduled races with pari-mutuel betting. They are Pimlico Race Course and Laurel Park. Pimlico is home to the Preakness race, which is part of the Triple Crown.

There are two types of games of chance widely available in Maryland. Charities may offer bingo and raffles. Bingo rules are liberal. Raffles may only be operated twice per year. Local governments set the licensing and location rules for charitable gambling in Maryland.

A state lottery sells scratch-off and lotto tickets. These are available at convenience stores throughout the state.

There are five Maryland casinos. They are Rocky Gap Casino, Horseshoe Casino, Hollywood Casino, Maryland Live!, and Ocean Downs. MGM National Harbor will open in late 2016. These Maryland casinos offer all the same games found in New Jersey or Nevada. These popular casino games include slots, video poker, blackjack, craps, roulette, and card games banked by the house.

Maryland Gambling Laws

Maryland gambling laws are strict for activities that are not specifically legal. Possession of gambling devices is illegal for residents. This also applies to vessels that may go out into international waters. Charities must register with local authorities. Charitable games permitted are paddlewheels, wheel of fortune, raffles and bingo. Charities may hold no more than two raffles per year. Bingo players may not purchase more than 54 tickets in a session.

Maryland casinos are allowed to operate if legalized through a local referendum. Each region may only have one gambling operation. There are six jurisdictions that voted to allow casinos in Maryland. The Maryland casinos are located in:

• Allegany County
• Baltimore
• Cecil County

• Anne Arundel County
• Worcester County
• Prince George’s County

Maryland casinos may offer a wide variety of games. These casino games include slots, video poker, live poker, craps, roulette, blackjack, Three Card Poker, Four Card Poker, Ultimate Texas Hold’em, baccarat, and other card games. There is a 67 percent tax rate on slots. This is the highest in the country. The tax on table games and live poker is 20 percent.

Horseracing is legal in Maryland. Greyhound racing is not. Racetracks may offer live racing and race books. Registered interstate racing companies may accept bets over mobile apps and the Internet in Maryland.

Maryland State Gambling Tax Penalties

The state lottery may sell scratch-off tickets and hold lotto drawings. It may participate in interstate lotto drawings. Tickets may not be sold over the Internet.

Maryland is one of two states, the other being Kansas, that specifically legalized fantasy sports. The state adopted the fantasy sports exemption in the Unlawful Internet Gambling Enforcement Act in 2012. There is some debate as to whether the language applies to daily fantasy sports sites like DraftKings and FanDuel. However, in 2016 this gambling law was repealed by the Maryland state legislation, making it once again illegal.

The minimum gambling age in Maryland is 18 years for lotteries, racing, and charitable gaming. Maryland casino gamblers must be 21 years or older.

List of Maryland Casinos

Beyond the hundreds of lottery retailers and bingo halls, there are just eight places to gamble in Maryland. Laurel Downs and Pimlico Race Course are the two racetracks. There are 146 days of live racing between these two venues. Each also has a race book for simulcast betting.

There are five Maryland casinos open for business in the state. A sixth is currently under construction. You can use the information below to find a location, or use our Maryland casinos map to help guide yourself to the nearest one.

History of Maryland Gambling

Horse racing dates back to the mid 18^th Century. The Maryland Jockey Club was founded in 1743. Its first races were held at Pimlico Race Course. It is still open today and home of The Preakness, one of the three Triple Crown races. Racing became specifically legal under state law in 1870. That is when pari-mutuel betting pools were created in Maryland under a state racing commission. Regulation of the specific tracks was left to the county or city where the track was located until 1912 when the state took control.

Maryland approved off-track betting in 1988. Simulcasting of races was only legal at the time when live racing was not operating on a track. In 1993, the state expanded off-track betting at any time the facility was open for business.

Voters approved a state lottery in November 1972. This was done through a constitutional referendum. The first ticket was sold on May 15, 1973. Early drawings were lottos of the Pick 3 and Pick 4 variety. The first scratch-off ticket was not sold until February 10, 1976. Scratch-off tickets are bigger sellers than lotto games today.

Casinos were approved through a statewide constitutional referendum in November 2008. Casinos operate under the oversight of the Maryland Lottery. Hollywood Casino in Perryville was the first to open on September 17, 2010. Ocean Downs opened the following year. Maryland Live! opened in 2012. Rocky Gap Casino opened in 2013. Horseshoe Casino launched in Baltimore in 2014. MGM National Harbor was awarded the state’s resort gaming license. It will open in 2016.

Maryland does not permit online gambling. It has been home to several busts related to the acceptance of internet bets. The Maryland office of the Department of Justice led busts like Operation Texas Hold’em where funds were distributed to local police departments for their participation.

The Linwood Payment Solutions sting operation originated in Maryland through the Department of Justice. This is where a bogus processor was created to handle payments for offshore online gambling sites and eWallets. This took down UseMyWallet and some sports betting sites in May 2011, just six weeks after Black Friday. This was referred to as Blue Monday in the online gambling world. Companies that survived saw their domain names seized and were forced to buy ones in other countries.

Calvin Ayre and two other officers of Bodog were indicted by the same Department of Justice office in February 2012. The Bodog.com domain was seized at the time. U.S. players had already been moved to Bovada.lv by that time as the company saw the risk of its .com domains. None of the three indicted ever traveled to the U.S. to fight the charges. Calvin Ayre was on the Top 10 List of the U.S. Immigration and Customs Enforcement. He dropped off the list even though he is still at-large.

Maryland was the first state to expressly legalize fantasy sports in 2012. The state legislature passed the exemption in the Unlawful Internet Gambling Enforcement Act. This made it clear that fantasy sports contests were legal in the state.

Maryland State Tax On Gambling Winnings

Maryland Casinos & Gambling FAQ

Race books are permitted at the two racetracks in Maryland.

Pimlico Race Course and Laurel Downs are the two pari-mutuel tracks in Maryland.

Maryland State Gambling Tax Refund

Off-track betting and fantasy sports are legal over the Internet and on mobile devices.

Maryland State Gambling Tax Forms

All fantasy sites accept Maryland players. The largest are DraftKings, FanDuel, CBS Sports and Yahoo! Even conservative sites like StarsDraft and Star Fantasy Leagues accept Maryland players.

The most popular off-track betting sites that accept players from Maryland are TVG, TwinSpires, and BetAmerica.

There are six casinos approved in Maryland. Five are open as of March 2016.

Slots, video poker, live poker, blackjack, craps, roulette, Three Card Poker, Four Card Poker, Ultimate Texas Hold’em, Pai Gow Poker and baccarat are among the available games.

Maryland State Gambling Tax Filing

The minimum Maryland gambling age is 18 years for bingo, racing and lottery, and 21 years for casinos.