Maryland Moves to Shut Down Legal Sports Betting

As states across the U.S. expand and regulate legal sports betting markets, a new trend is emerging among lawmakers—efforts to shut down or curtail these markets. In the latest development, Maryland State Senator Joanne Benson introduced a bill that would effectively close the state’s online sports betting market by January 2026. This marks the second bill filed in the U.S. this year calling for the end of an established legal market, as lawmakers in Vermont filed a similar proposal earlier this month.

 

Maryland’s SB 1033

On February 20, 2025, Senator Benson filed Senate Bill 1033 (SB 1033), which aims to shut down Maryland's burgeoning online sports betting market by the start of 2026. While the bill would not affect Maryland’s brick-and-mortar sportsbooks, which launched in December 2021, the bill's impact would be felt most acutely in the online betting space that has rapidly expanded since its launch in November 2022.

The introduction of SB 1033 is a stark contrast to the flourishing growth Maryland's sports betting market has seen in recent years. As of January 2025, bettors in Maryland have wagered a total of $12.2 billion across both retail and online platforms, resulting in $143.2 million in tax revenue for the state. The state’s gross gaming revenue has also reached $1.4 billion, with mobile wagering playing a significant role in the market's growth. In fact, following the launch of mobile platforms in November 2022, the state witnessed a dramatic rise in sports betting handle, increasing from $39.7 million in October 2022 to $219 million in November 2022.

Despite this robust growth, Benson’s bill suggests that some operators may be eligible for application fee refunds under certain circumstances, indicating an attempt to limit future expansion and potentially mitigate the financial impact of market closure.

 

National Trend: Vermont Follows Suit

Maryland is not alone in seeing pushback against its sports betting market. On February 4, Vermont lawmakers introduced a bill with a similar objective—to close the state’s newly established sports betting market. This trend of attempting to shut down legal markets seems to be gaining some momentum across the country, challenging the broader wave of sports betting legalization that has swept through the U.S. in recent years.

While the move to close Maryland’s online sports betting market could prove to be a contentious one, the financial implications are undeniable. Since the launch of both retail and digital platforms, Maryland’s betting scene has brought substantial revenue to the state. In addition to the tax revenues generated, the sports betting market has contributed to job creation and increased economic activity. However, critics of the industry argue that the long-term social costs may outweigh the financial benefits.

The latest bills have reignited debates surrounding the potential social harms of gambling expansion. Advocates for responsible gambling warn that the growth of legal betting markets could lead to an uptick in gambling addiction, particularly as digital platforms make wagering more accessible. Additionally, some land-based casino operators have expressed concern that the expansion of digital gambling could erode their traditional businesses, leaving them less competitive.

In Maryland, the state legislature is also considering other forms of gambling expansion. Hearings have already been held on the potential legalization of iCasino, a form of online casino gaming, with committees in both the House and Senate exploring options for regulatory frameworks. The prospect of introducing historical horse racing machines at some sportsbooks is also on the table. However, support for iCasino appears to be lukewarm at best, with land-based casinos opposing the expansion and gambling addiction advocates raising red flags over potential harm.

 

The Legislative Calendar and Uncertain Future

SB 1033 faces significant hurdles in Maryland’s legislative process. The bill was introduced after the Senate’s February 3 filing deadline, meaning it is unlikely to move forward during this legislative session. Bills filed after the deadline are typically referred to the rules committee, and any proposals introduced this session will not carry over to the 2026 legislative period.

Though it seems unlikely that SB 1033 will gain traction this year, the growing trend of lawmakers targeting already-legalized markets may signal future legislative efforts that could alter the trajectory of sports betting in Maryland and other states. For now, however, the fate of Maryland’s sports betting market remains uncertain, with potential for continued legal battles, financial discussions, and social debates surrounding the issue.

 

Efforts to close legal sports betting markets highlight a growing debate over balancing economic benefits with potential social risks.

 

Conclusion

The push to shut down or scale back legal sports betting markets is reflective of a broader debate about the role of gambling in society. While proponents of legalization point to the economic benefits and regulatory control it offers, opponents argue that the risks—particularly with the potential for increased addiction and harm to existing businesses—cannot be ignored.

As more states across the U.S. wrestle with these competing interests, Maryland and Vermont’s legislative efforts represent a key moment in the ongoing conversation about the future of sports betting in the U.S. Whether the bills ultimately succeed or fail, they highlight a growing ideological divide over the pace and extent of gambling expansion—a debate that may shape future legislation in states across the country.