Maryland’s lottery, casinos, sportsbooks and fantasy competition operators contributed a record $1.637 billion to state programs and services during Fiscal Year 2026, illustrating how several separately regulated gaming products now support the same public-finance system.
The fiscal year covered July 1, 2025, through June 30, 2026. Total contributions increased by $48 million from FY2025, according to Maryland Lottery and Gaming’s FY2026 results.
Casinos provided the largest share at $822.2 million. Traditional lottery operations generated $681.6 million in profit for the state, while sports wagering and fantasy competitions contributed another $133.3 million.
The record does not mean Maryland collected $1.637 billion in conventional casino taxes. It combines lottery profit with casino gaming contributions, sportsbook payments and fantasy competition proceeds. Each category uses a different calculation and supports a different combination of state funds.
Maryland Gaming Contributions Increased By $48 Million
Maryland Lottery and Gaming reported that regulated gaming produced an average of approximately $4.48 million per day for state causes during FY2026.
Casino gaming accounted for slightly more than half of the record contribution. The lottery remained the second-largest source, while sports wagering supplied a smaller but rapidly growing share.
| Gaming Source | FY2026 State Contribution |
|---|---|
| Maryland’s six casinos | $822.2 million |
| Traditional lottery | $681.6 million |
| Sports wagering | $132.3 million |
| Fantasy competitions | $1.03 million |
| Combined total | $1.637 billion |
The figures are rounded, so the displayed categories may not reconstruct the reported total precisely.
Approximately $699.8 million from casinos, sports wagering and fantasy competitions was directed to education-related programs. Lottery profit also supported the General Fund and several designated programs, some of which provide additional education and public-service funding.
The structure gives Maryland several sources of gambling-related public revenue. It also makes the headline more complicated than a single casino-revenue figure because sales, wagers, operator revenue and state contributions are not interchangeable measurements. Check out: Nevada Gaming Revenue Reaches $1.388 Billion As The Strip Outpaces Downtown.
Casino Revenue And State Contributions Are Different Figures
Maryland’s six casinos generated $1.931 billion from slot machines and table games in FY2026. That was the fifth-highest annual revenue total in the 16-year history of the state’s casino program.
The six properties operating during the fiscal year were MGM National Harbor, Live! Casino & Hotel Maryland, Horseshoe Casino Baltimore, Ocean Downs Casino, Hollywood Casino Perryville and Rocky Gap Casino Resort.
Casino gaming revenue describes the amount retained by the properties after prizes were paid through the applicable games. It is not the total amount inserted into machines or exchanged at tables, and it is not the amount the state ultimately received.
From the $1.931 billion in casino revenue, Maryland received $822.2 million for education, local aid, horse racing, business-development programs and regulatory expenses. Casino operators retained approximately $1.101 billion as their share.
That difference matters when comparing Maryland with the national market. As gclubgod.com’s examination of U.S. commercial gaming revenue in Q2 2026 demonstrates, nationwide operator revenue and state gaming-tax receipts can grow at different rates because every jurisdiction uses its own rates, deductions and allocation rules.
Maryland’s comparatively large casino contribution reflects the state’s statutory distribution model. It should not be used as a direct tax-rate comparison without considering differences between slot machines, table games and individual properties.
Casinos Directed $599.1 Million To Education
The Education Trust Fund received $599.1 million from Maryland casino gaming during FY2026. The fund supports early childhood programs, public elementary and secondary education, school construction and capital improvements.
Cumulative casino contributions to the Education Trust Fund have now exceeded $7 billion since Maryland’s first casino opened in September 2010.
Education was the largest beneficiary of casino revenue, but it was not the only one. Maryland’s official FY2026 gaming summary reported the following allocations:
| Casino Revenue Allocation | FY2026 Amount |
|---|---|
| Education Trust Fund | $599.1 million |
| Local aid | $103.4 million |
| Horse racing | $94.7 million |
| Small, Minority and Women-Owned Business Fund | $20.3 million |
| Gaming operating-expense contribution | $13.5 million |
| Problem Gambling Fund assessments | $4.4 million |
| Casinos’ retained share | $1.101 billion |
The $4.4 million supporting responsible-gaming programs came from annual assessments rather than the casino gaming taxes included in the $822.2 million state-contribution headline. Maryland assesses casino operators $425 for every slot machine and $500 for every table game.
This distinction explains why certain figures can appear beside the casino distribution without being counted identically in the statewide total.
Local aid included money for jurisdictions and communities hosting casinos. Horse-racing allocations supported purse-dedication and racetrack-facility accounts, while the business fund received money intended to support small, minority-owned and women-owned enterprises.
The allocations show that casino revenue operates as a network of earmarked payments rather than one unrestricted transfer to Maryland’s General Fund.
The Lottery Supplied $681.6 Million In State Profit
Traditional lottery products generated $2.676 billion in sales during FY2026, the third-highest annual sales result in the Maryland Lottery’s 53-year history.
Scratch-off sales reached $1.052 billion, exceeding $1 billion for the fifth consecutive fiscal year. Lottery players received approximately $1.693 billion in prizes, representing 63.2% of sales.
The state retained $681.6 million in lottery profit, or approximately 25.5% of sales. Retailers received $199.5 million in sales and cashing commissions, while operating expenses totaled approximately $102.8 million.
Most lottery profit—$532.5 million—went to Maryland’s General Fund. The remaining amount supported designated programs that included public transportation, Baltimore school construction, Camden Yards improvements, the Maryland Veterans Trust Fund and sports and entertainment facilities.
Lottery sales should not be treated as state income. Most ticket revenue is returned through prizes, retailer commissions and operating costs before profit is distributed.
The same principle applies across the broader gaming total. Large sales and wagering figures provide information about customer activity, but they do not show how much operators retained or how much reached public programs
.
Sports Wagering Contributions Increased 48.8%
Maryland sportsbooks contributed $132.3 million to the state during FY2026, rising 48.8% from the $88.9 million delivered in FY2025.
Customers placed approximately $6.912 billion in retail and mobile wagers during the year. Sportsbooks paid back about $6.117 billion in prizes and recorded a combined hold of 11.5%.
After promotional play and other permitted deductions, taxable proceeds totaled approximately $664.7 million. Those proceeds—not the complete handle—formed the basis for the state contributions.
Mobile wagering produced almost all the sportsbook payment:
- Mobile sportsbooks contributed approximately $130.4 million.
- Retail sportsbooks contributed approximately $1.9 million.
- The Blueprint for Maryland’s Future Fund received approximately $99.7 million.
- Maryland’s General Fund received approximately $32.6 million.
Retail sportsbook operators direct 15% of taxable proceeds to the Blueprint Fund. Mobile operators contribute 15% to the Blueprint Fund and an additional 5% to the General Fund.
Maryland increased the effective state payment applied to mobile sportsbook taxable proceeds during the fiscal year. That change helps explain why state contributions grew considerably faster than wagering volume alone might suggest.
The state’s June 2026 sports-wagering report shows how the calculation worked at the end of the fiscal year. Bettors wagered $523.3 million during June, but the resulting state contribution was $7.6 million after prizes, promotional wagers and other deductions were considered.
Handle therefore should never be presented as operator income or public revenue. Most money wagered is returned to customers, and sportsbook hold can change substantially from one month to another.
Fantasy Competitions Added Just Over $1 Million
Fantasy competition operators generated approximately $6.86 million in proceeds during FY2026. Maryland received 15% of that amount, producing a contribution of slightly more than $1.029 million for the Blueprint for Maryland’s Future Fund.
Operators retained approximately $5.83 million.
Fantasy competitions represented a small portion of the $1.637 billion statewide total, but including them provides a more complete account of Maryland’s regulated gaming structure.
It also prevents the record from being inaccurately attributed only to casinos, lottery tickets and sportsbooks. The state regulates and collects payments from several distinct products, even when one category contributes only a fraction of the combined result.
More Than $5.4 Million Supported Problem-Gambling Services
Maryland’s Problem Gambling Fund received approximately $5.4 million during FY2026.
Casino assessments supplied about $4.4 million. Another $1.1 million came from expired sports-wagering prizes, which Maryland directs to the fund rather than allowing operators to retain them.
The money supports no-cost counseling and other services for Maryland residents affected by gambling-related harm. Adults seeking confidential assistance can contact 1-800-GAMBLER.
This funding is important, but its effectiveness cannot be measured only by how much money enters the fund. Maryland must also evaluate whether residents know services exist, how quickly callers reach appropriate assistance and whether treatment remains accessible across the state.
Operators have responsibilities beyond making statutory payments. Casinos and sportsbooks need visible account controls, trained employees, understandable game information and self-exclusion procedures that work across relevant systems.
Revenue growth increases the number of transactions and customer interactions regulators must oversee. Player-protection capacity should therefore expand with the market rather than remain fixed while gaming activity grows.
The Record Depends On Several Different Revenue Systems
Maryland’s $1.637 billion result demonstrates the fiscal scale of regulated gaming, but each component reached the state through a different route.
The lottery converted $2.676 billion in ticket sales into $681.6 million in state profit. Casinos generated $1.931 billion in gaming revenue and supplied $822.2 million through Maryland’s distribution system. Sportsbooks accepted $6.912 billion in wagers but contributed $132.3 million after prizes and deductions. Fantasy operators added approximately $1.03 million.
Combining those payments creates a useful statewide headline. Separating them reveals what the number actually means.
Casino gaming remained Maryland’s largest direct source of gaming-related state contributions. The lottery supplied a stable second channel, while sports wagering delivered the fastest contribution growth.
That mix also distributes risk. A weaker period in one segment does not automatically produce an equivalent decline across the full system. Lottery sales, casino visitation and sportsbook results respond to different customer behaviors and economic conditions.
At the same time, dependency on gaming revenue creates public-policy questions. Education, local aid and other programs benefit from the money, but their funding becomes partly connected to continued gambling activity. A record contribution should therefore be evaluated alongside market sustainability, transparent accounting and the adequacy of responsible-gaming services.
Maryland’s Next Test Is Converting Revenue Into Measurable Public Value
FY2026 established a new record, but Maryland’s longer-term performance will depend on more than producing a larger contribution total.
The state will need to show how $699.8 million in education-related gaming proceeds supports identifiable priorities, whether local casino communities receive benefits proportional to their costs and whether problem-gambling resources remain accessible as mobile wagering expands.
Future comparisons should also separate growth produced by customer activity from growth created by tax changes. Maryland’s sportsbook contribution increased sharply, but changes to the mobile rate affected how much money reached the state.
Transparent reporting makes those distinctions possible. Publishing handle, prizes, operator revenue, deductions and state payments allows the public to understand the path between gambling activity and government funding.
Maryland’s record $1.637 billion contribution is therefore significant, but the headline is only the beginning of the analysis. The more important measure is whether each regulated gaming channel produces transparent, sustainable funding while the state maintains effective oversight and usable player protections.
