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00:00Maryland, oh my gosh, are we surprised,
00:03wants to raise their tax rate?
00:0515% is what they got.
00:08Yeah.
00:09They're asking for 30, doubling the tax rate?
00:12Is this gonna pass?
00:15Who knows at this point, but yeah, this is something,
00:17you know, the industry has been kind of worried
00:18about the last two years since New York passed their,
00:23you know, legalized at 51% tax rate.
00:26The industry has been like, oh man,
00:27this could be bad for us in other states
00:30when they see what New York's bringing in.
00:31Because for the most part,
00:32states legalized sports betting at a nice,
00:34reasonable amount that the industry had liked
00:37and worked with legislators to propose,
00:39you know, somewhere around the likes of under 20%,
00:42you know, whether it's 15% in a lot of states,
00:45including Maryland or others.
00:47But since then, we've seen a lot of bills come in,
00:51including this year in Michigan and Louisiana.
00:54But in Maryland, we're seeing the governor come out
00:57and in his proposed budget,
00:59include doubling the tax rate, to your point,
01:01from 15% to 30%.
01:04And this is something we've seen in other states
01:06in the past, including Illinois last year.
01:08They went from 15% to a tiered system
01:11based on revenue from 20% to 40%.
01:13So the more you make, the more you get taxed.
01:17The year before that, just shortly after it launched,
01:19Ohio's governor, Mike DeWine, put in his budget
01:23another doubling from 10% to 20%.
01:25So they're still reasonable.
01:27But both of those passed the legislator
01:30when they went through the budget.
01:31And this is kind of where you look at Maryland,
01:34similar to how we've talked about Illinois'
01:36online casino proposal this year in the budget,
01:39which J.B. Pritzker did,
01:40Wes Moore is facing a $3 billion deficit in Maryland.
01:44So from that, you see this tax rate and say,
01:48maybe we do need to up it to get some more revenue
01:51from this tool that they instituted,
01:54mostly to gain more tax revenue.
01:56So that's where you're looking at Maryland.
01:58Does it pass?
01:59We're gonna see.
02:00This is kind of, it has to go through
02:02the whole entire legislative process,
02:04get passed from the House, get passed from the Senate.
02:08There's gonna be lots of talking about it.
02:10Who knows if they actually bring this up?
02:12This could be one of the things
02:13that gets put in the budget that just kind of slips through
02:15and isn't even really talked about.
02:17What also is interesting with that $3 billion deficit,
02:21is there more of an appetite for the online casino bill
02:24that we've seen introduced in Maryland,
02:27which of course last year passed the House,
02:30fell kind of on deaf ears in the Senate.
02:33Could this $3 billion deficit and this tax rate hike say,
02:36hey, maybe this gambling is a way to bring in more revenue.
02:40Let's do this,
02:40because we have a lot of money to make up in Maryland.
02:43So yeah, the tax rate, who knows,
02:45could be something that slips through.
02:48And then also it could have implications
02:49on the online casino bill there in Maryland as well.