Sports betting in Maryland hasn’t always been the easiest. Not at all. While it was legalized by voters in November of 2020, it took years to really get this industry off the ground.
For example, the first retail sportsbook didn’t launch until December 2021 — more than a year after legalization got approved. Online sports betting had to wait until November 2022, two full years. See what we mean when we say the path toward legalized sports betting wasn’t easy?
However, all those struggles have been worth it. Now almost two years since online betting has been a thing inside the state, the industry hit a huge milestone. Let’s get into it inside of this article.
State Hits $100 Milly In Tax Revenue
At last, the state of Maryland has hit the $100 million mark. That’s how much money they’ve earned from legalized sports betting over the last three years — really two since online betting contributes to most of the betting (more on this soon).
We’re talking about the money they get to keep too — after the sportsbooks keep their own cut. The total revenue numbers are more in the billions, but those are vanity numbers more than anything else.
The $100 million-plus in tax revenue mostly goes to the state’s education fund. Officially, it’s dubbed the Blueprint for Maryland’s Future Fund. The state doesn’t always have the best rep for education so you have to be pleased that legalized sports betting is trying to turn the tide. Additionally, the state’s Problem Gambling Fund also recorded a kickback — like the $78,740 it got this past August.
Currently, Maryland’s sports wagering market consists of 11 mobile platforms and 12 retail locations. Betr — the microbetting app backed by Jake Paul — is the latest operator to get a license inside of the state.
Moreover, mobile betting remains the dominant force in Maryland. Just this last month, mobile generated $368 million of the state’s total handle. Retail betting? It contributed a meager $8.9 million. So as you can tell, mobile is responsible for 98 percent of betting activity in the state.
August Betting Numbers Come Up Clutch
Maryland finally turned things up a notch betting-wise in August. The month saw a rebound in the monthly handle, marking the first increase since March when the NCAA March Madness tourney was heating up. After several months of declining wagers, August’s handle surged 13.2 higher than July’s, breaking the downward trend.
What helped Maryland’s cause is a monthly hold of 10.4 percent. This marked the fifth month in a row that Maryland had a hold in the double digits. The national average is more in the 8 percent range so Maryland is winning big there.
Furthermore, $5.6 million in taxes were contributed in August 2024. This is where things get the most impressive because the figure more than doubled the $2.6 million recorded in the same month during 2023. You see similar growth when comparing handles. August 2024 was up 43.1 percent from August 2023. The year-over-year growth of the industry is hard to argue against.
FanDuel Paces Maryland Market
As mentioned before, online sportsbooks dominate the state’s betting landscape. But which ones are out ahead?
That would be FanDuel. This comes as no surprise since nationally, FanDuel has the highest market share. But let’s focus on the state and August most recently. During the last month, FanDuel captured 44 percent of the online market, raking in a $160.7 million handle. Hot on its heels was DraftKings, which secured 32 percent of the market with a $119.3 million handle. Again, this follows national trends as both industry giants are neck and neck with each other.
A distant third in Maryland was BetMGM, pulling in a $32.2 million handle. Caesars, ESPN BET, and Fanatics also managed to reach eight-figure handles. Another in-state newcomer Bally’s managed $1.5 million wagers in August. Ballys barely broke into the market in July so early struggles were expected.
We absolutely expect blowout numbers from Maryland’s sports betting scene the rest of the year — and we mean blowout. Of course, this is because we’re in the middle of the peak betting season which coincides with NFL and NCAA football. Every state and sportsbook makes the lion’s share of their betting profits from now til February when the Super Bowl happens. That’s the power of NCAA and NFL football betting really.
This is especially the case in Maryland this year too. Of course, the Ravens are Super Bowl contenders again. They got off to a slow start, but no one in the state is panicking yet. This team is still packed with talent, starting at quarterback with Lamar Jackson.
However, there’s another quarterback making waves in the state — and that’s Jayden Daniels. Yes, Daniels plays for the Washington Commanders, but many in the state actually root for them, not the Ravens. This is due to proximity and also history. The Ravens weren’t around before the ‘90s and that’s also when Washington was one of the league’s most successful teams.
Anyway, Daniels appears to be the real deal after a few games. And with Dan Snyder no longer the owner of the franchise, there’s a lot of optimism for the Commanders. This should only drive extra betting in Maryland to really juice up those 2024 revenue and tax figures. We’ll be monitoring the situation here so check back for more betting news.
