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Maryland Sees a $478.3m Handle in the First Month of Mobile Sports Betting
By Jeff Osienya Jan 15, 2023 IndustryMaryland posts nearly half a million worth of wagers in the first full month of mobile and online sports betting. The internet-based sports betting front has already overshadowed the year-old retail market in the first month of debut.The long wait for mobile sports wagering in Maryland finally ended for its residents in late November 2022. According to the figures released by the Maryland Lottery and Gaming Control Agency (MLGCA), December, the first full month of mobile sports betting, saw Marylanders spend $478.2 million on wagers.
As we speak, most states are yet to release their December statistics on how wagering fared. Nonetheless, early indications are that the Old Line State may break right into the top 10 jurisdictions with the highest wagers processed in December, alongside states such as Michigan and Indiana.
Breaking Down the December ‘22 Figures
Mobile sports betting accounted for the lion’s share of activity last month, with $478,270,326 worth of wagers, of which $70,939,973 were promotional. On the other hand, retail wagering accounted for $18,851,329, which included $67,469 in promotional bets.
Of course, the massive volume of promotional wagers can be attributed to the fact that the Old Line State is a new market. Thus, there is an urge by promoters to hand out “free play” to bettors in a bid to entice them to their platforms. As such, the promotional influence could be felt with December’s tax from sports betting activity whittled down to a paltry $44,791.
Ultimately, only three of Maryland’s seven live operators managed to post taxable earnings due to the volume of promotional credit they were handing out. BetRivers reported $53,411 in taxable earnings and paid $8,011 as taxes, whereas Barstool posted a $19,396 revenue and paid $2,909 to the state’s tax coffers. Finally, Caesars’ revenue was the highest at $225,801, and they ended up parting with $33,870 to pay taxes.
This perhaps puts into greater context the topic of promotional credit that has rumbled the gambling airwaves in the US for quite some time now. Having faced a similar conundrum beforehand, states like Colorado and Virginia have amended their laws to eliminate promotional deductions. Since then, the two states have seen significant rises in their tax revenues.
So, while Maryland established rules to limit the amount of promotional taxable income to 20%, the conversation will remain a hot topic for some time in the future. Meanwhile, other states, like the Empire State, completely outlawed this practice from the onset of sports betting within their jurisdictions.
Industry Bigwigs at the Top in Maryland
The Maryland mobile sports betting scene was a case of familiar foes going head-to-head in a battle that saw the seven contenders gaining cumulative profits worth $289,609 in December. This was a welcome reprieve from November’s $38 million loss when DraftKings and FanDuel combined to register millions in promotional bets, seeking to gain a foothold in the new market.
Fortunately, their bets paid off big time, with December’s figures showcasing the two industry giants being head and shoulders above every other operator in Maryland. Here’s a more comprehensive breakdown highlighting how the various operators performed last month:
- FanDuel – Handle: $236.2m, GGR: $45.2m, Market Share: 49.4%
- DraftKings – Handle: $157.9m, GGR: $26.2m, Market Share: 33%
- BetMGM – Handle: $42.3m, GGR: $6m, Market Share: 8.9%
- Barstool – Handle: $16.4m, GGR: $1.9m, Market Share: 3.4%
- Caesars – Handle: $15.6m, GGR: $1.9m, Market Share: 3.3%
- PointsBet – Handle: $6.7m, GGR: $0.8m, Market Share: 1.4%
- BetRivers – Handle: $3.2m, GGR: $0.2m, Market Share: 0.7%
It’s still early days in Maryland mobile sports betting, but the industry is sure to grow exponentially from the seven operators already in place. In addition, state legislation allows up to 60 online operators.
In-Person Sports Betting Takes a Massive Hit
December was also the first full month where Maryland’s retail sportsbooks had to take on mobile sports betting. From the stats, it seems that online wagering’s impact is already being felt in the Free State.
Retail sportsbooks took home $18.8 million in wages in December. In contrast, October, the state’s last month without online wagering, recorded $21 million more from land-based sports betting. That said, in-person betting is still vital to the state and contributed $395,252 in taxes, which is significantly more than what online betting offered in December.
Table Games and Slot Machines See a Slight Dip
Moving on to table games and slot machines, Maryland’s six casinos reported $165.2 million in revenue, a slight decrease of $7.7 million from the previous year. MGM National Harbor, located in Prince George’s County, was Maryland’s highest earner in tables and slot games, registering revenue of $69.4 million, a decrease of nearly 7% from its December 2021 figures.
Coming in second in this segment was the Live Casino & Hotel located in Hanover, which registered $59.6 million. Lastly, Horseshoe Casino took the final podium place in table and slot game revenues in Baltimore, which raked in $16.8 million in revenue.
Having been launched in December 2021 (retail sports betting), Maryland’s sports betting scene is still relatively new. This means there is much room for growth, with more retail and online sportsbooks coming into the fold. Maryland Governor Larry Hogan recently estimated that the state could register $30 million in revenue this year, but it remains to be seen how the industry will fair. As always, we’ll keep you updated on any new developments on this front.
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