After two years of sports betting, Maryland reached a new record in December with operators handling over $559 million in bets from customers. The state launched retail sports wagering in December 2021 followed by online betting in November 2022.
As expected, the Maryland betting adds handle accounted for 96.7% of the total in December at $541,650,933.62 with retail in-person sportsbooks recording an additional $18,214,529.05 for a total of $599,865,462.67. This handle surpassed the previous mark of more than $550.7 million in November.
FanDuel acquired the biggest mobile/online handle at over $245 million in the month, while BetMGM sportsbook at National Harbor led the retail handle with over $5.1 million.
From December’s handle, sportsbooks (mobile and retail combined) paid out a total of $497,534,530.43 in winnings bets.
Each sportsbook contributes 15% of its taxable win to the Blueprint for Maryland’s Future Fund, which supports public education programs in Maryland. After deducting winnings, promotions, and other deductions, mobile wagering delivered $6,166,034 in taxes to the state from December, while retail sportsbooks contributed an additional $316,369.
“The numbers we’re seeing over the last six to 12 months reflect the maturation of the market,” said Maryland Lottery and Gaming Director John Martin. Maryland Lottery and Gaming operates the Maryland Lottery and is responsible for regulatory oversight of the state’s casinos and sports wagering program.
“Initial projections were that sports wagering would generate $25 million to $30 million annually for the state as the market was ramping up,” Martin added. “We’ve now had more than a year of mobile wagering, and we expect the annual contribution to settle in at more than $40 million.”
Maryland currently has 13 retail sportsbook locations in the state with 12 mobile/online operators available statewide. The $6.5 million tax payment to the state in December topped the $5.8 million generated during October 2023.
High Hopes For iGaming
Since 2018, over 36 U.S. states and the District of Columbia have legalized some form of sports betting.
Maryland launched retail sports betting at five casinos in December 2021. In November 2022, the state’s first seven online/mobile sportsbooks went live during Thanksgiving. Now state senators see an additional $900 million in gross revenue that could come from online casinos in the state.
Two state senators introduced a bill in January 2023 to try and get iGaming started in Maryland. Introduced by Sen. Ron Watson (Democrat, Prince George’s County) and Sen. Nancy King (Democrat, Montgomery County), the bill failed to gain any traction.
Using performance data from six states that currently have legal online casinos (also known as iGaming, or iCasinos), a new report released last year says that Maryland online casinos could generate $533.4 million in gross revenue from online gambling starting in 2026.
As the industry matures in Maryland, the initial $533.4 million in 2026 from iGaming would grow to more than $900 million in gross revenue (or “casino win”) in 2029. This all comes from an iGaming study performed by The Innovation Group.
To give iGaming a push in 2024, the Maryland Lottery and Gaming Control Agency awarded a contract to The Innovation Group to perform a study on online casinos for the Maryland General Assembly’s Budget Committees as legislation relating to iGaming is contemplated.
Maryland is a prime candidate for online casinos, according to Watson and King. Its proximity to New Jersey, Pennsylvania, West Virginia, and Delaware, which all have online casinos, will possibly help get a Maryland online casino referendum passed in 2024.
During research and interviews with other iGaming state officials, it was suggested that Maryland consider adopting aspects of the New Jersey and Michigan online casino legislation, as those states have fostered healthy and burgeoning iGaming markets that produce economic benefits for both the state and the state’s existing casinos.
Key aspects of the bills in those states include licenses tethered to existing brick-and-mortar casinos, a reasonable tax rate, gaming board oversight, and reasonable responsible gaming requirements.
If there is any hope of launching iGaming in Maryland, senators will need to introduce a new bill for the 2024 session, which convenes this week.
If an iGaming bill is passed in 2024, Maryland voters will have their say during the November election.
