DraftKings Maryland: Safe? Tax Doubled to 20% for Schools

DraftKings Maryland: Legal, Licensed, No iGaming Yet

DraftKings Maryland went live online on November 23, 2022, two years after voters approved Question 2 by a 66.3%-to-33.7% margin in November 2020. That referendum, and the House Bill 940 that implemented it, is why the sportsbook exists here at all — and why a 2026 budget fight over the tax rate, not a legality question, is the thing actually moving right now.

Legal status in Maryland

Maryland's constitution requires any expansion of commercial wagering to go to voters first, so sports betting only became possible after Question 2 passed on the November 3, 2020 ballot, 66.3% to 33.7%. The General Assembly then wrote the implementation rules into House Bill 940, sponsored by House Speaker Adrienne Jones and signed in 2021, authorizing wagering at the state's casinos, professional sports stadiums, and racetracks, plus mobile licenses tied to those venues. Retail sportsbooks opened first, on December 9, 2021; mobile betting — DraftKings included — didn't launch until November 21-23, 2022, after the Maryland Lottery and Gaming Control Agency finished vetting operators. DraftKings has operated under an MLGCA license continuously since. It is one of twelve licensed online sportsbooks in the state today, alongside FanDuel, BetMGM, Caesars, Fanatics, bet365, and others.

State gambling authority: Maryland Lottery and Gaming Control Agency

DraftKings Maryland exists because of a single number: 66.3%. That's the share of voters who approved Question 2 on November 3, 2020, clearing the constitutional hurdle Maryland puts in front of any new form of commercial gambling. Two years, one implementing law, and one licensing process later, DraftKings went live online on November 23, 2022. In 2026 the live story isn't whether it's legal — it's what the state is now charging for the privilege.

Is DraftKings Legal in Maryland? Yes, Since November 2022

Maryland's constitution requires voter approval before the General Assembly can expand commercial wagering, which is why sports betting here started at the ballot box rather than in a committee room. Question 2 passed 66.3% to 33.7% in November 2020. The legislature followed with House Bill 940, sponsored by House Speaker Adrienne Jones, authorizing wagering at the state's casinos, pro sports stadiums, and racetracks, with mobile licenses tied to those venues. Retail sportsbooks opened December 9, 2021; the mobile market — DraftKings included — didn't open until nearly a year later, once the Maryland Lottery and Gaming Control Agency finished vetting operators.

The regulator: the Maryland Lottery and Gaming Control Agency licenses and audits all twelve of the state's online sportsbooks, DraftKings among them, alongside FanDuel, BetMGM, Caesars, Fanatics, bet365, theScore Bet, and five smaller operators.

Where the Tax Money Actually Goes

Maryland didn't leave the revenue question vague. The 2020 law dedicates sports wagering tax revenue primarily to the Blueprint for Maryland's Future Fund, the state's K-12 education funding mechanism — not the general fund. What changed in 2026 is the rate: Governor Wes Moore's fiscal year 2026 budget raised the mobile sportsbook tax from 15% to 20% to help close a state budget gap. DraftKings now pays that higher rate on every dollar of Maryland revenue, same as every other licensed app.

The numbers: 66.3% referendum approval (2020), 15% starting tax rate (2022), 20% current tax rate (2026), 12 licensed mobile operators, one education fund receiving the proceeds.

The Online Casino That Isn't Coming

Maryland has never legalized iGaming, and 2026 didn't change that. Senator Ron Watson pushed a two-bill approach — SB 761 to put an internet gaming referendum before voters, and SB 885 to write the regulatory framework that would follow it, complete with labor protections and a $10 million worker displacement fund. The Senate Budget and Taxation Committee canceled its scheduled hearing, and Watson withdrew SB 761 on March 10, 2026. No DraftKings Casino app exists in Maryland, and won't until a future legislature and a future statewide vote both go the other way. Five states have it — Connecticut, Michigan, New Jersey, Pennsylvania, West Virginia — Maryland isn't one of them.

Is DraftKings Legit in Maryland?

Nothing in the public record ties an MLGCA enforcement action to DraftKings here, in a market transparent enough that a tax-rate change makes the local news. That's the actual test: a regulated Maryland operator's problems show up in committee hearings and agency filings, not in silence. An offshore book doesn't have either.

How Safe Is DraftKings for Maryland Players?

Standard regulated-market protections apply: MLGCA licensing, geolocation confirming an in-state bettor, identity verification at signup, and an actual agency to complain to if something goes wrong. The tax hike and the dead iGaming bill are both separate from that — neither touches whether the sportsbook itself is properly licensed today. Treat any deposit as entertainment spending, not income. 21+ only, and if it stops feeling like entertainment, Maryland's problem gambling helpline is 1-800-GAMBLER.

DraftKings Maryland — Frequently Asked Questions

Is DraftKings legal in Maryland?

Yes. Maryland voters authorized sports wagering through the Question 2 referendum in November 2020, the General Assembly implemented it through House Bill 940, and DraftKings has held a Maryland Lottery and Gaming Control Agency mobile license since online betting launched on November 23, 2022.

Why did Maryland double the sports betting tax?

Governor Wes Moore's fiscal year 2026 budget raised the tax on mobile sportsbook revenue from 15% to 20%, aiming to close a state budget gap. DraftKings and every other mobile operator now pays the higher rate on Maryland revenue; the increase didn't touch anyone's license status, just the state's cut.

Where does Maryland's DraftKings tax money go?

Primarily to the Blueprint for Maryland's Future Fund, the state's K-12 education funding mechanism. That earmark was written into the original sports betting law voters approved in 2020, not added later — the revenue destination has stayed education-specific since before the market opened.

Does DraftKings have an online casino in Maryland?

No, and it won't soon. Maryland has never legalized iGaming. A 2026 push to put it on the ballot — Senate Bill 761, an internet gaming referendum, plus its companion regulatory bill SB 885 — collapsed when the Senate Budget and Taxation Committee canceled its scheduled hearing and sponsor Ron Watson withdrew SB 761 on March 10, 2026. DraftKings Casino remains limited to five other states: Connecticut, Michigan, New Jersey, Pennsylvania, and West Virginia.

Is DraftKings legit in Maryland?

By the public record, yes. DraftKings has run as one of Maryland's twelve licensed mobile operators since 2022 without a reported MLGCA enforcement action against it, in a market transparent enough that the tax-rate fight made statewide news. That's a different bar than an offshore book, where there's no regulator publishing anything at all.

Is DraftKings safe to use in Maryland?

As safe as regulated Maryland betting gets: MLGCA licensing and audits, mandatory geolocation confirming an in-state bettor, identity verification at signup, and a state agency a player can file a complaint against. None of that changes because the tax rate went up or because online casino stayed dead in 2026 — both are separate from whether the sportsbook itself is properly licensed.