Sports betting handle in the Old Line State fell slightly month-over-month in January.
But there is no denying how much the Maryland sports betting industry has grown over the last year.
Maryland bettors wagered nearly $545 million on sports in January between online and retail sportsbooks, according to a report from the Maryland Lottery and Gaming Control Agency. The January handle represents a 2.6% dip from December’s figures. However, the numbers jumped 23.4% compared to January 2023.
Sports betting got off to a great start in 2024 thanks to the NFL playoffs and a massive number of parlay bets.
Ravens’ exit may have slowed Maryland betting in January
The Maryland sports betting market features 13 retail sportsbooks and another 12 mobile operators. Those sportsbooks combined to generate $80 million in revenue. Marylanders bet the most on professional football in January.
Pro football generated $9.4 million of revenue statewide. That was more than twice as much revenue as the next closest sport, professional basketball with $3.5 million. In total, bettors wagered $60.8 million on pro football in January.
No type of wager came close to that of parlays. In total, $291 million were parlay bets, more than half of Maryland’s total sports betting handle in January. The parlay bet revenue was even more stark. Operators won $61 million from parlays, representing 76.3% of all revenue across the state.
Maryland Lottery and Gaming Director John Martin understands that the success of sports betting is heavily dependent on football season. He thinks the slip month over month has to do with the Baltimore Ravens’ playoff exit.
“The calendar is always the driving force in sports wagering, and the football playoffs in January reliably produce strong numbers. The AFC Championship game didn’t go the way Ravens fans were hoping or expecting, which may have contributed to the results we saw. It’s a reminder that unforeseen outcomes happen, so it’s always best for anyone who wagers to set a budget, have a plan and stick to it and keep the focus on having fun.”
FanDuel, MGM National Harbor were January’s top operators
In January, bettors won $465 million from sports wagering, which resulted in a hold percentage of 14.7% statewide.
That left just a hair over $80 million of revenue for sports betting operators, which was over $20 million more than January 2023.
Of that $80 million, 97.9% came from mobile sports betting, which equated to $78.3 million. The most profitable operator in January went to Live! Casino, which uses FanDuel Maryland as its sports betting partner.
Here are the top three revenue generators for January in Maryland:
- Live! Casino (FanDuel): $30.5 million
- DraftKings: $17.7 million
- BetMGM: $3 million
The remaining $1.7 million came from retail sports betting. The leader of the pack in that category was MGM National Harbor, which uses BetMGM Maryland as its sports betting affiliate.
Here are the top three retail sportsbooks ranked by revenue:
- MGM National Harbor: $658,426
- Horseshoe Casino: $287,143
- Ocean Downs Casino: $149,985
Maryland receives $8.2 million in taxes from January sports betting
Sports betting operators might have combined to generate $80 million of revenue, but that figure does not consider deductions, bonus credit and other promotions. After regulators deduct those numbers, the remaining is what’s taxable. Operators reported $55 million in taxable revenue, and the state takes 15%.
Therefore, operators paid $8.2 million to the state, a new single-month record. It beat the previous record set just a month before, which saw operators pay $6.5 million. Furthermore, tax revenue is nearly four times larger than in January 2023.
Taxes from sports betting in Maryland go to two locations. The main chunk of taxes goes toward the Blueprint for Maryland’s Future Fund, which supports public education. A smaller percentage is allocated to the Problem Gambling Fund.
In January, $2.8 million of the total taxes went toward problem gambling.
