Maryland Sports Betting Revenue

At the end of 2021, Maryland launched the first legal retail sportsbooks in the state. Now, a total of nine casinos and retail locations have already begun accepting regulated wagers. A number of professional teamsstadiums, racetracksbingo halls, and even bars and restaurants will join that list in the near future.

To boot, the first MD betting apps are now live. Seven sportsbooks launched on Wednesday, Nov. 23.

During the first nine days of Maryland online wagering, bettors placed $186 million in wagers. And while promotional deductions returned minimal taxes to Maryland these low tax contributions will only be a temporary obstacle for the state.

December numbers continued to paint a promising picture for the state. Maryland bettors wagered $478.2 million in December, the first full month of online sports betting.

FanDuel and DraftKings have been the clear favorite for Maryland online bettors, having accepted over 83% of total action since launch.

Maryland lifetime online sports betting revenue

SportsbookHandlePrizes PaidHold %Promotional Play & DeductionsTaxable WinContributions To The State
FanDuel$326,157,406.78$269,949,049.5917.2%$69,642,310.91$0.00$0.00
DraftKings$227,445,224.86$191,603,164.2315.8%$49,632,422.76$0.00$0.00
BetMGM$57,406,594.72$47,463,248.7417.3%$10,917,776.36$0.00$0.00
Barstool$22,064,242.40$19,800,723.0310.3%$2,244,122.80$19,396.57$2,909.49
Caesars$19,031,731.10$16,524,525.6713.2%$2,282,050.47$225,801.34$33,870.20
PointsBet$8,387,940.16$7,322,829.6612.7%$1,130,768.42$0.00$0.00
BetRivers$3,861,681.75$3,519,308.168.9%$260,551.42$81,822.17$12,273.32
Total$664,354,821.77
$556,182,849.0816.3%$136,110,003.14$327,020.08$49,053.01

December 2022

SportsbookHandlePrizes PaidHold %Promotional Play & DeductionsTaxable WinContributions To The State
FanDuel$236,211,720.24$191,014,614.2519.1%$40,069,270.99$0.00$0.00
DraftKings$157,846,565.61$131,591,991.0816.6%$22,887,224.46$0.00$0.00
BetMGM$42,331,149.85$36,302,244.5914.2%$5,082,460.13$0.00$0.00
Barstool$16,352,987.53$14,456,051.1211.6%$1,339,700.38$19,396.57$2,909.49
Caesars$15,562,484.98$13,679,949.7312.1%$1,565,323.61$225,801.34$33,870.20
PointsBet$6,734,912.13$5,946,622.2711.7%$818,893.93$0.00$0.00
BetRivers$3,230,505.86$2,975,343.907.9%$201,750.78$53,411.18$8,011.68
Total$478,270,326.20
$395,966,816.9417.2%$71,964,684.29$298,609.09$44,791.36

November 2022 (nine days)

SportsbookHandlePrizes PaidHold %PlayDeductionsTaxable WinContributions To The State
BetMGM$15,075,444.87$11,161,004.1526.0%$5,812,182.16$23,134.07($1,920,875.51)$0.00
BetRivers$631,175.89$543,964.2613.8%$57,222.70$1,577.94$28,410.99$4,261.65
Caesars$3,469,246.12$2,844,575.9418.0%$707,790.46$8,936.40($92,056.68)$0.00
DraftKings$69,598,659.25$60,011,173.1513.8%$26,637,796.14$107,402.16($17,157,712.20)$0.00
Barstool$5,711,254.87$5,344,671.916.4%$890,084.28$14,278.14($537,779.46)$0.00
FanDuel$89,945,686.54$78,934,435.3412.2%$29,421,730.03$151,309.89($18,561,788.72)$0.00
PointsBet$1,653,028.03$1,376,207.3916.7%$308,513.20$3,361.29($35,053.85)$0.00
Total$186,084,495.57
$160,216,032.1413.9%$63,835,318.97$309,999.88($38,276,855.42)$4,261.65

How big could MD sports betting become?

In 2023 alone, PlayMaryland ‘s Maryland sports betting projections suggest that sportsbooks will take in over $4 billion in legal wagers, leaving the state with close to $75 million in tax revenue. The industry could also generate well over $200 million in annual revenue for Maryland sportsbooks.

To understand how much revenue sports betting in Maryland could generate, it’s important to first grasp a few terms:

  • Handle: Amount of money wagered by bettors
  • Gross gaming revenue: Total made by sportsbooks minus winnings paid out
  • Hold percentage: Gross gaming revenue divided by total handle
  • Tax revenue: Money that regulators collect from sportsbook operators

Maryland could reach market maturity by its third year. By then, sports betting operators could total $3.1 billion in handle, which could generate between $125 million and $225 million in taxable revenue.

The 15% tax rate agreed upon by lawmakers could translate to $35 million for the state.

The success of Maryland sports betting will largely rely on how much competition regulators can foster. This should be no problem for operators in the Old Line State. Regulators approved 60 mobile sports betting licenses and more than 40 retail licenses.

Licensing fees for MD sports betting

Before the state even begins benefiting from wagers placed, Maryland will see revenue immediately start coming in just from licensing fees.

From mobile licensees paying $500,000 for initial fees to top Class A licensees shelling out $2 million, upfront costs for operators and license holders will provide an immediate boon for Maryland.

The breakdown of each individual tier, including which properties are eligible to obtain those licenses, goes as follows:

LicenseLicense FeesEligible Licenseholders
Class A-1$2 million license fee
$500,000 renewal fee every five years
Casinos with 1,000 or more machines, horse racetracks and major professional sports facilities
Class A-2$1 million license fee
$300,000 renewal fee every five years
Casinos with less than 1,000 machines
Class B-1$250,000 license fee
$50,000 renewal fee every five years
Those who fit this license but are not small enough businesses for B-2
Class B-2$50,000 license fee
$10,000 renewal fee every five years
Entities with fewer than 25 employees and $3 million in gross receipts
Mobile$500,000 license fee
$100,000 renewal fee every five years
Anyone

Could MD sports betting reach market projections?

Maryland has plenty of advantages when it comes to legal sports betting.

Only Washington, DC, boasts a higher median income among jurisdictions with regulated wagering. Then factor in the active fan bases of regional professional teams such as the Baltimore Ravens, Baltimore Orioles, and Washington Commanders, not to mention nine NCAA Division I athletic programs.

Additionally, Maryland features a very inclusive sports betting industry, with over 100 retail and online betting licenses up for grabs.

That said, the state’s population of 6 million lines up with the likes of Colorado, which stands as the eighth-largest sports betting market in the country. Since going live in May 2020, Colorado has totaled $1.8 billion in wagers that have led to $109.4 million in gross gaming revenue.

Moreover, Maryland is the only state with legal sports betting that’s surrounded by other jurisdictions with regulated wagering. The state also doesn’t feature a significant sports tourism industry, which adds to the point that Maryland sports betting might have to rely entirely on local interest.

Passionate fan bases will help MD sports betting

The state’s numerous professional and college sports teams should buoy its yearly sports betting tax revenue.

Pro franchises with home venues in Maryland include:

As for college, major NCAA Division I schools that compete in the FBS include the Maryland Terrapins and Navy.

Some states launch sports betting without any neighboring competition, allowing those industries to capitalize by attracting visitors. Maryland, though, has no such advantage.

But with major professional sports, six casinos, a bevy of racetracks, off-track betting sites, and other entities that could offer legal betting, Maryland can still see its sports betting industry thrive.

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