The Maryland Lottery and Gaming Control Commission (MLGCC) announced on Monday that retail and Maryland mobile sports betting contributed $704,728 in tax revenue to the state in November.
Mobile sports betting launched in Maryland on Nov. 23 with seven sportsbooks going live. Although its impact on November tax revenue was minimal due to the fact it went live so late in the month, online sports betting in Maryland is expected to carry the torch for tax revenue from gambling.
The proof for that comes from how large the difference was in the sports betting handle between retail and online during November. The retail betting handle in November was $32.9 million for the whole month, while the online betting handle was $186 million for eight days.
Maryland Online Sports Betting Debuts With a Bang
FanDuel Sportsbook led the way in November with a sports betting handle of $89.9 million while DraftKings Sportsbook came in with the second-highest handle with $69.5 million. Here are the seven sportsbook operator handles for November:
- FanDuel Maryland — $89,945,686
- DraftKings Maryland — $69,598,659
- BetMGM Maryland — $15,075,444
- Barstool Maryland — $5,711,254
- Caesars Maryland — $3,469,246
- PointsBet Maryland — $1,653,028
- BetRivers Maryland — $631,175
During the first nine days of mobile sports wagering being live, the seven sportsbooks brought in a combined handle of $186,084,496 which includes $63,835,319 in free promotional play. (Claim thousands in online sports betting bonuses here.)
Sportsbook operators were able to deduct that $63.8 million from the taxable winnings leading to mobile sports betting contributing just $4,262 in taxes to the state.
During the first fiscal year, there is no limit on the amount of promotional play but after the first fiscal year, sportsbooks can’t exceed 20% of their taxable wins from the previous year with promotional play.
“Deducting promotional play has an impact on the bottom line, and that’s why we have a cap that takes effect after each operator’s first full fiscal year,” MLGCC Director John Martin said. “It protects the state’s interests and ensures that sports wagering will generate revenue for education, as intended. By awarding large amounts of promotional play in their first fiscal year, the sportsbooks’ promo play amounts will be limited in their second year.”
More mobile sportsbooks are on the way as Betfred, Parx Interactive, and Fanatics have been granted licenses. The MLGCC also qualified Bally’s and WynnBet to receive mobile sports betting licenses but they must now go through the Sports Wagering Application Review Commission to receive a license.
Maryland Retail Sports Betting Stays Strong
Retail sports betting brought in a combined handle of $32.9 million in November throughout the nine retail sportsbooks in Maryland. Retail sports betting contributed $700,466 through the sports wagering tax.
Maryland currently has nine retail sportsbooks with Long Shot’s in Frederick being the latest to open. BetMGM’s sportsbook at MGM National Harbor and FanDuel’s sportsbook at Live! Casino & Hotel led the way during November.
Here is a breakdown of each sportsbook’s handle and contribution to the state.
- MGM National Harbor — $9,721,996 and a $160,861 contribution
- Live! Casino & Hotel — $12,172,213 and a $343,282 contribution
- Bingo World — $1,398,521 and a $41,258 contribution
- Greenmount OTB — $185,991 and a $960 contribution
- Hollywood Casino — $2,141,984 and a $34,487 contribution
- Horseshoe Casino — $4,962,247 and an $81,624 contribution
- Long Shot’s — $72,689 and a $3,915 contribution
- Ocean Downs Casino — $2,272,718 and a $33,195 contribution
- Riverboat on the Potomac — $58,514 and an $879 contribution
AP Photo/John Munson