Posted on: August 16, 2022, 12:40h.
Last updated on: August 15, 2022, 07:08h.
Maryland casinos and its lottery generated more than $1.5 billion in tax revenue during the state’s 2022 fiscal year.
The Maryland Lottery and Gaming Control Agency (MLGCA) said Monday that the state’s six casinos, the Maryland Lottery, sportsbooks, and daily fantasy sports platforms generated a record $1.511 billion in tax revenue between July 1, 2021, through June 30, 2022. The money is used to support public schools, health, safety, and other vital state programs and services.
The state’s six commercial casinos delivered the bulk of the tax money at $832.3 million. The record tax receipts came after the Maryland casino industry experienced record gross gaming revenue of more than $2 billion.
Maryland casinos share 20% of their table game win with the state. Slot machine net win is taxed on a graduated scale that ranges from 40%-61%.
Of the $832.3 million that the casinos sent the state during the 2022 fiscal year, about $611.6 million was allocated to the Maryland Education Trust Fund. Nearly $106 million was set aside for local impact grants and host casino towns, while almost $90.8 million went to the horse racing industry.
Some $19.5 million was used to support small, minority, and women-owned businesses, and approximately $4.5 million was directed for responsible gaming programs.
Lottery Banner Year
While casinos remain the largest source of gaming tax revenue in Maryland — the six properties collectively generating more than $4.6 billion in education money since the first casino opened in 2010 — state officials say its gaming industry is varied.
Not far behind the casinos in terms of tax generation is the Maryland Lottery. The lottery during the 2022 fiscal year sold more than $2.66 billion worth of tickets, a new all-time high. On the record play, the Maryland Lottery reported record win of $673.7 million.
The lottery primarily benefits the Maryland General Fund. The lottery sent the General Fund a record $635 million during the fiscal year. The lottery also funded Baltimore City Schools to the tune of $20 million and provided the Maryland Stadium Authority with $15.2 million.
“We have a fairly equal product mix. We’re not overly dependent on any one thing,” said John Martin, director of the MLGCA.
Industry Expansion
Maryland lawmakers welcomed in oddsmakers in May 2021 by legalizing sports gambling. And while online sports betting hasn’t yet commenced, brick-and-mortar sportsbooks provided a new tax benefit during the state’s 2022 fiscal campaign.
More than $174.7 million was wagered lawfully on sports since the first retail bet was placed in December of 2021. Oddsmakers kept $19.2 million of the action and sent the state $2.8 million in taxes.
Sports betting taxes fund the state’s newly formed “Blueprint for Maryland’s Future Fund.” The fund also supports public education, but is focused on early childhood development and better diversifying the state’s public education workforce.
Online sports betting is expected to greatly increase legal sports betting activity and tax revenue. Such mobile operations are likely to commence in the coming weeks or months.
Fantasy sports platforms provided an additional $2.5 million to the Blueprint Future Fund on gross revenue of $17 million during the year.
