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Unless you’ve been under a rock as of late, you know legal sports betting is under attack in certain parts of the country. Now that it’s legal in 39 out of 50 states, many critics are dining out of the woodwork.
Gambling addiction. Financial ruin. Domestic problems. All are being blamed for the rise of sports betting up and down the country. Maybe there’s some truth, maybe there’s some exaggeration — it’s not our place to really say or not.
However, two states have actually taken action on the issue. First, Vermont proposed to end legal sports wagering in their state, and now Maryland sports betting has followed suit. Let’s take you inside the state of affairs in Maryland, which is nicknamed the Free State — but if this bill passes, nothing would be free about sports gambling.
Senate Bill Would End Sports Betting
Maryland Senator Joanne Benson is behind Senate Bill 1033, which wants to kill sports betting. Well, sort of. SB 1033 is technically only targeting mobile sports betting apps inside the state — that’s your BetMGM, DraftKings, and FanDuel of the world. This bill would not touch physical sportsbooks, which would be allowed to continue to operate. The ban would take effect on January 1, 2026.
When Maryland first legalized betting, physical sportsbooks had a head start. Those started taking in bets in 2021, while mobile apps didn’t join in on the fun until 2022. Per Benson’s thinking, that was the ideal situation for in-state bettors.
Benson didn’t actually explain her rationale. Seriously, we looked for a statement or quote — nothing. However, we can imagine she thinks the easy access to betting is the issue here since it targets mobile apps, and not physical locations. In the majority of states where both are legal, apps take up 95 percent of the betting volume thanks to that easy accessibility.
SB 1033 faces some technical challenges though. It was introduced after the Senate’s February 3 deadline to submit new proposals. Not only that but it was sent to the rules committee instead of going through the routine legislative channels. But here’s the biggest dagger: the state does not allow for the discussion of bills to carry over to the next session. It would have to be re-introduced from scratch in 2026.
All this is to say Benson’s bill has a small chance of passing. Not only this year, but next year, and forever really. That’s because the “genie is out of the battle” and it’ll be tough for Maryland (or any other state) to forgo the betting revenue that’s being made, which is plenty as we’ll get into next.
Maryland Sports Betting Has Made A Killing
Legal sports gambling has been a big, big hit to the state of Maryland. Since 2022, when both retail and mobile betting were in effect, it’s estimated that Maryland bettors have wagered a total of $12.2 billion through January 2025. That’s a staggering number, which has created $143.2 million in tax revenue for the state. That might be the exact reason SB 1033 dies a painful death, as well as any future bills trying to strike down wagering.
Not only that, but the money is going to good causes too. The biggest beneficiary has been the “Blueprint for Maryland’s Future” fund. This is an initiative for the state’s public education programs, which if we’re being honest, could use all the support they could get. The state of Maryland consistently ranks on the low end of many education rankings.
If anything, we’re more likely to see the state raise the tax on sports betting — not eliminate the entire program. At the moment, Maryland taxes betting with a flat 15 percent rate. This is starting to look cheap compared to other states like Illinois (as high as 40 percent tax) and New York (51 percent). In the past, Maryland Governor Wes Moore has proposed taxing it at 30 percent instead.
Yes, we know “government efficiency” is the big political narrative right now. But recent history shows us governments and lawmakers are going to continue to spend money — not cut costs. If this is the case, legal sports betting will be tough to kill given their contributions to state taxes.
Vermont’s Bill Chances Are Also Low
We mentioned earlier that Vermont was the first to introduce a bill like this. They did, but looking at it, the chances of that being approved are almost as low as Maryland.
In February, Vermont lawmakers introduced House Bill 133 (H 133). If passed, the measure would repeal Vermont’s existing sports betting and lottery laws — with stiff penalties for breaking the rules. Under the proposed law, anyone caught violating the ban could face fines of up to $2,000 or even jail time.
For now, H 133 has been sent to Vermont’s Committee on Government Operations and Military Affairs, but it hasn’t seen much movement since. The entire legislative session ends the first week of May so things need to get moving — or the issue will have to be raised in 2026 again.
We’re not banking on either Maryland or Vermont to pass anything. However, it is interesting news and worth monitoring in the grand scheme of things.
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