Lottery official and DLS outline modest FY27 budget change, highlight sports wagering and illegal online gaming
February 14, 2026 | Education, Business and Administration Subcommittee, Budget and Taxation Committee, SENATE, SENATE, Committees, Legislative, Maryland
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Elizabeth Bridal, budget analyst for the Department of Legislative Services, presented the FY27 operating review for the Maryland Lottery and Gaming Control Agency to the Senate Budget and Taxation Committee’s subcommittee on Feb. 13, saying the FY27 allowance increases about $2 million (1.5%) to roughly $135 million.
Bridal noted that roughly 90% of the agency’s spending is from special funds tied to lottery revenue and that three large contracts—lottery ticket production, equipment and monitoring, and slot-machine monitoring—make up about 42% of the agency’s budget. DLS records show the general fund is expected to receive about $472 million in FY27 distributions from lottery revenues; MLGCA operations are budgeted at about $107 million and supplemental stadium financing about $87 million.
The agency and DLS also discussed sports wagering. Bridal highlighted mobile betting growth after the state’s recent tax-rate changes and noted the first sports-betting licenses issued in 2022 are up for renewal in FY27. John Martin, director of the Lottery and Gaming Control Agency, told the committee that FY25 lottery ticket sales contributed about $667 million to the state and casino gaming added more than $831 million. He asked the committee to concur with DLS’s recommendation on the governor’s allowance.
DLS reported the agency has been sending cease-and-desist letters to unlicensed online gaming platforms, including prediction-market operators, and the Office of the Attorney General is representing the state in related litigation. Bridal also summarized a 2024 survey showing increased sports-betting participation: 11.5% of Maryland adults reported online or mobile sports betting in the past year, up from 3.4% in 2022.
Committee members asked for clarification on revenue distribution categories and supplemental stadium-financing receipts; DLS and agency staff said those flows are governed by statute and administered through the Maryland Stadium Authority. The subcommittee offered no immediate votes during the hearing and moved to the Port Administration segment after questioning.
Bridal noted that roughly 90% of the agency’s spending is from special funds tied to lottery revenue and that three large contracts—lottery ticket production, equipment and monitoring, and slot-machine monitoring—make up about 42% of the agency’s budget. DLS records show the general fund is expected to receive about $472 million in FY27 distributions from lottery revenues; MLGCA operations are budgeted at about $107 million and supplemental stadium financing about $87 million.
The agency and DLS also discussed sports wagering. Bridal highlighted mobile betting growth after the state’s recent tax-rate changes and noted the first sports-betting licenses issued in 2022 are up for renewal in FY27. John Martin, director of the Lottery and Gaming Control Agency, told the committee that FY25 lottery ticket sales contributed about $667 million to the state and casino gaming added more than $831 million. He asked the committee to concur with DLS’s recommendation on the governor’s allowance.
DLS reported the agency has been sending cease-and-desist letters to unlicensed online gaming platforms, including prediction-market operators, and the Office of the Attorney General is representing the state in related litigation. Bridal also summarized a 2024 survey showing increased sports-betting participation: 11.5% of Maryland adults reported online or mobile sports betting in the past year, up from 3.4% in 2022.
Committee members asked for clarification on revenue distribution categories and supplemental stadium-financing receipts; DLS and agency staff said those flows are governed by statute and administered through the Maryland Stadium Authority. The subcommittee offered no immediate votes during the hearing and moved to the Port Administration segment after questioning.
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