In just nine days, Maryland’s online sports betting apps eclipsed the monthly output of the state’s in-person sportsbooks.
Sports bettors placed an astounding $186.1 million in bets on seven Maryland sportsbook apps in November.
Maryland releases November online sportsbook numbers
According to data released in early December by the Maryland Lottery & Gaming Control Agency, Maryland’s seven online sports betting operators gave out $63.8 million in bonus bets and promotions. That left the state to collect $4,262 in taxes. However, this low initial tax haul was expected and forecasted by officials.
“We expect mobile sportsbook operators to continue to offer a lot of promotional wagers in the coming months as they venture into a new market and work to attract customers,” said Maryland Lottery and Gaming Director John Martin, in a release about the revnue numbers. “There was tremendous pent up demand, and a lot of people are utilizing promotional offers from multiple operators simultaneously. But as many of the operators have acknowledged, this level of promotional play is not sustainable, and based on our regulations, it will be curtailed over time.”
Meanwhile, Maryland online sports bettors collected $160.2 million in winnings in November.
Combined with Maryland’s now nine retail sportsbook locations, Maryland bet $219.1 million on sports, producing $704,728 in tax revenue for the state.
This November revenue report includes all wagers placed during the first eight days of legal online wagering as well as stats from the first eight hours of controlled demonstrations that took place pre-launch on Nov. 21.
Maryland’s online sports betting launch took place during the hustle and bustle of Thanksgiving week. And thanks to a robust sports schedule that included the World Cup, NFL matchups, college football bowls, and plenty of basketball action, bettors were never at a loss for options.
FanDuel takes the crown as top MD sportsbook app
November’s operator breakdown conveys a clear leader in the race for Maryland sportsbook market share dominion.
FanDuel Sportsbook has taken the early lead as top dog. FanDuel reported $89.9 million in handle, accounting for 48.3% of the market’s monthly total.
DraftKings Maryland Sportsbook handled almost $69.6 million, good enough for 37.4% market share. That left less than 15% of the market for the other five operators.
|OPERATOR||HANDLE||MARKET SHARE||HOLD %||PROMOS||TAXABLE REVENUE||STATE TAXES|
Online sports betting sets new Maryland records
Since Maryland casinos began taking legal sports wagers in December 2021, the highest monthly amount gambled on sports was $39.7 million in October 2022.
November’s small sample size reflects general expectations for Maryland’s online sports betting market, particularly in its first year. State law permits online sportsbook operators to deduct an unlimited amount of promotional play from reported revenue for 12 months. The temporary result is inflated revenue for online gambling companies and less tax money for the state.
PlayMaryland reported last week on how Maryland Lottery & Gaming Director John Martin advised against making any sort of long-term conclusions based on initial returns. Martin estimated:
“We’ll roughly do in the low $30 million on the retail side, but mobile will be upwards of $180 million-plus when you look at the total handle.”
Martin’s expectations practically hit the nail on the head.
In the four months of Fiscal Year 2023 (July 1, 2022 – Oct. 31, 2022), bettors wagered just over $105 million in person, pocketing almost $88 million of that as winnings.
Maryland online sports betting in 2023
Looking ahead to 2023, Maryland’s budding online sports betting industry is set to skyrocket. Only seven sportsbook apps are currently live in the state, and five more are working their way through the licensing and approval process. Another 10 additional operators have also applied for an online sportsbook license and are pending review.