MARYLAND (WBFF) — Maryland is taking in billions from gambling as more residents lose money and addiction rates climb.
From lottery tickets to casinos to mobile sports betting, the state has rapidly expanded legal gambling in recent years, generating more than $1.6 billion in revenue in fiscal year 2025. But that same system is fueled by losses – an estimated $2.5 billion from Marylanders in a single year — prompting a question to state leaders: Is the state profiting from an increasingly addictive product?
ALSO READ | Maryland sports wagering generates $13.5M for state in September
As lawmakers now consider expanding gambling again by legalizing online casinos, experts warn that the state may be deepening its financial reliance on an industry tied to rising addiction and the social costs that come with it.
A Spotlight on Maryland analysis of public records found that in fiscal year 2025, Marylanders lost roughly $1 billion playing the state lottery and about $470 million betting on sports. Casino revenue totaled roughly $2 billion that year. If half of the casino gambling revenue came from state residents, that means in total, Marylanders lost roughly $2.5 billion gambling in a single year.
To put those odds in perspective, a Marylander who spent $100 on the state lottery lost $36 on average. A Marylander who bet $100 on sports lost about $11.
At the same time, data suggests the human cost is rising. Surveys conducted by the Maryland Center of Excellence on Problem Gambling found that from 2022, before online sports betting launched, to 2024, amid a sports betting boom, the number of Maryland adults with a severe gambling problem roughly doubled, from 1.6% to 3.1%. Those with moderate gambling problems increased from 4% to 5.7%.
‘It took a lot from me’
William Hinman, a recovering gambling addict who works as a peer supervisor at the Maryland Center of Excellence on Problem Gambling, said his staff has noticed an ongoing uptick in calls to their gambling addiction hotline, including more concerned parents of young adults.
“We call this a hidden addiction because it’s a lot easier to hide than a substance use addiction,” said Hinman, who told Spotlight on Maryland his gambling addiction contributed to his two failed marriages. “It took a lot from me. I think the only reason I’m able to live with my past today is because I’m able to use my lived experience to help other people with this addiction. I think gambling addiction is way underestimated. It’s the most financially devastating addiction out there. And I think that’s why it has the highest risk of suicide of any other addiction.”
Maryland casinos are required by law to fund efforts to provide free gambling addiction services. The funding totaled $5.7 million in fiscal year 2025.
Dr. Christopher Welsh, a psychiatrist focused on addiction treatment, said research shows gambling addicts are disproportionately male, Black and less educated. Welsh, who works as the medical director at the Maryland Center of Excellence on Problem Gambling, said there is little incentive for casino companies to make a serious effort to treat gambling addicts.
“In the end, they are there to make money. And the big percentage of people that make them the most money are the people that have the biggest problems with gambling,” he told Spotlight on Maryland, emphasizing that his organization does not have enough resources to keep up with the advertising campaign of casino companies. “Clearly, we’re seeing that more and more people are getting caught up in it and developing significant problems.”
‘We need to legalize this’
Maryland raised $1.6 billion in gambling revenue in fiscal year 2025, most of which came from the lottery and casinos. Sports betting only contributed $61 million that year, most of which funds the Blueprint education plan. But revenue from sports betting is up 58% in fiscal year 2026, with still four months left.
The potential for more revenue has led lawmakers to push for legalized online casino games, a move that would allow 24/7 access from a phone to slots, blackjack and more. Maryland Sen. Ron Watson, who sponsored the Senate version of the bill, told The Baltimore Sun this month that the state needs new revenue sources to address billion-dollar spikes in budget surpluses for future years.
“We must act now or we’re going to fall behind,” Watson said.
Jeff Ifrah, general counsel at the iDEA trade association, which represents online casino companies such as DraftKings and FanDuel, said Maryland already has a dangerous, thriving market of illegal online casinos.
“To protect Maryland consumers, we need to legalize this vertical, because then the operators like MGM and Caesars and others can advertise that they now can provide safe and regulated gaming experiences and entertainment experiences for everyone in Maryland,” Ifrah told Spotlight on Maryland.
‘A casino in your pocket’
A report last year from the Campaign for Fairer Gambling found that while seven states legalized online casinos, the market for illegal online casinos continued to grow.
Studies suggest that legalizing online casinos attracts new customers and is associated with increases in reported gambling problems.
Hinman warned that allowing 24/7, mobile access to casino games will lead to a continued spike in gambling addiction.
“I know the addiction. When you have a casino in your pocket, it is not a good thing,” he told Spotlight on Maryland.
Ifrah dismissed the studies as revealing greater transparency in a legalized market.
“Can I say that there’s no increase in addiction as a result of the offering? No, I wouldn’t have a basis to say that. But what I can say is that the tools are provided only on regulated sites to monitor and provide help to people who do identify or exhibit problem behavior data,” he told Spotlight on Maryland.
Where does Moore stand?
A spokesman for Gov. Wes Moore, when asked if his office supports efforts to legalize online casinos, refused to take a clear position.
“Maryland’s approach to gaming must be grounded in balance and responsibility. Existing gaming revenues do support key priorities like education, and Maryland also funds treatment and prevention efforts for problem gambling,” Moore’s spokesman told Spotlight on Maryland in an emailed statement.
“Any conversation about online betting or other gaming proposals has to account for the full impact on Maryland families — including addiction, consumer protections, and whether the safeguards are strong enough. The governor supports the General Assembly and Lottery Commission’s efforts to crack down on illegal gaming and will continue to evaluate all options to protect Marylanders,” the statement said.
Spotlight on Maryland is a joint venture by The Baltimore Sun, FOX45 News and WJLA in Washington, D.C. Have a news tip? Call 410-467-4670 or email SpotlightOnMaryland@sbgtv.com. Contact Patrick Hauf at pjhauf@sbgtv.com and @PatrickHauf on X.