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HB 291

Sports Wagering Proceeds - Promotional Play Exclusion - Limitation

2026 Regular Session

HB 291 excludes free promotional bets from Maryland sports wagering tax calculations, reducing state revenue while increasing operator profit margins on bonus offerings.

Hearing 2/05 at 1:00 p.m.
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WeVote Research Nonpartisan
Bill Summary · HB 291

Legislative bill overview

HB 291 proposes to exclude promotional play (free bets or bonus credits) from the calculation of sports wagering proceeds in Maryland. This would affect how tax revenues are determined from sports betting operations, as operators would only count actual money wagered—not promotional incentives—when calculating tax obligations.

Why is this important

Sports betting tax revenue supports state programs and budgets. Excluding promotional play from taxable proceeds would reduce state revenue collections while potentially increasing operator profits, as companies could offer more free bets without increasing their tax liability. This creates a direct trade-off between competitive operator incentives and public funding.

Potential points of contention

  • Revenue impact: Excluding promotional play could significantly reduce state tax revenue, requiring offsetting cuts to state programs or other revenue sources
  • Competitive fairness: Different treatment of promotional spending versus cash wagers may create unequal competitive advantages among sportsbooks
  • Definition disputes: Defining and tracking "promotional play" versus legitimate wagers could create compliance and enforcement challenges for regulators

Compiled from official sources — confirm details with the bill’s official record.

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