Betr Sportsbook is one step closer to obtaining a Maryland sports betting license after the state’s lottery and gaming commission granted initial approval on Thursday.
Founded by professional boxer Jake Paul and CEO Joey Levy, the sports betting operation now needs approval from Maryland’s Sports Wagering Application Review Commission before taking customer bets. Betr is already available in Ohio and Virginia with Colorado, Kentucky, Indiana, and Pennsylvania as target states in the future. In February, the sports betting app ceased operations in the Commonwealth of Massachusetts after struggling to gain ground in the market and battled financial troubles.
During Thursday’s Maryland Lottery and Gaming Commission meeting, the Managing Director of the Lottery’s Regulatory Oversight Division, John Mooney, provided a review of the company’s past financial troubles.
“Betr Holdings launched its first real money gaming product and its media business in 2023, increasing revenue to $20.3 million for the year,” Mooney said. “However, this resulted in increased marketing sales and player incentives driving the net loss of $32 million for the year.” But Mooney stated the company had successfully attracted investors to fund its initial operations.
“As Betr Holdings transitions from its startup phase to full operations, expanding into new markets, its revenue will grow and its operating costs will stabilize,” Mooney said. “There are no overwhelming factors that would lead us to conclude that Betr Maryland LLC is financially unstable for a Maryland sports wagering license. But a review of its operating performance and financial condition is recommended annually.”
Maryland Sports Betting Market
Maryland first introduced sports betting in December 2021 with a retail sportsbook located at its five casinos. Online and mobile betting followed in November 2022. Today, Maryland has 13 retail and 11 mobile sportsbooks. Betr would be the 12th mobile sportsbook to join the sector.
Maryland lawmakers introduced a bill this year that would have put Internet gaming (or iGaming, online casinos) on a ballot for a vote during the 2024 November election. That bill failed to pass.
Maryland’s sports wagering market generated $5.6 million in tax contributions to the state after handling $486.3 million in bets during April. Sports wagering tax contributions go to the Blueprint for Maryland’s Future Fund, which supports public education programs.
The tax contribution collected in April was the fourth-best single-month total and represented a 47.1% increase from the $3.8 million figure in April 2023.
Sports wagering data is tracked and reported based on the state’s fiscal year, which runs from July 1 through June 30. During the first 10 months of Fiscal Year 2024 (July 2023 through April 2024), sports wagering has contributed $47.5 million to the Blueprint for Maryland’s Future Fund.
April’s $486.3 million in handle was an increase of 48.0% compared to the $328.4 million total in April 2023. Retail sportsbooks reported $11.3 million in handle while mobile wagering recorded $474.9 million.
BetMGM Sportsbook at MGM National Harbor led the retail handle in April at $3.2 million but paid out more than it brought in, $3.6 million, reporting a -2.7% hold for the month.
FanDuel led the mobile market in April handling over $221 million in bets and reported a hold of 14%.
