Mobile, retail betting generates $704,000 for Maryland in November
BALTIMORE - Online sports gambling isn't even a month old in Maryland, but wagering contributions generated more than $704,000 for the state in November.
Seven mobile sportsbooks launched on Nov. 23.
The first nine days of mobile sports wagering handle totaled $186 million, along with $32,900 in retail wagers.
That amount included $63,835,319 in free promotional play, which is provided to customers by sportsbooks and is deducted from the taxable win. As a result, mobile wagering accounted for $4,262 in contributions to the state in its first nine days.
Retail wagering contributed $700,466, combined with mobile's $4,262, for $704,728 in November.
"We expect mobile sportsbook operators to continue to offer a lot of promotional wagers in the coming months as they venture into a new market and work to attract customers," said Maryland Lottery and Gaming Director John Martin. "There was tremendous pent-up demand, and a lot of people are utilizing promotional offers from multiple operators simultaneously. But as many of the operators have acknowledged, this level of promotional play is not sustainable and based on our regulations, it will be curtailed over time."
Each sports wagering licensee contributes 15 percent of its taxable win to the Blueprint for Maryland's Future Fund, which supports public education programs, according to Maryland Lottery and Gaming.
Maryland's sports wagering regulations do not limit the amount of a sportsbook's promotional play in its first full fiscal year of operation. However, after the first full fiscal year, regulations require that a sportsbook's promotional play amount may not exceed 20% of its taxable win from the prior year.
"Deducting promotional play obviously 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," 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."
Maryland had nine retail sportsbook facilities and seven mobile sportsbooks operating during November 2022. The ninth retail location, Long Shot's in Frederick, opened on November 18.
A detailed breakdown of each sportsbook, including handle, hold percentage, prizes paid, promotional play, taxable win, and contribution to the state, is included in the attached chart and available for download at mdgaming.com.
Here are the statewide sports wagering totals for November 2022:
Handle (Amount players wagered, including promotional wagers provided to players by sportsbooks)
- Retail: $32,986,878
- Mobile: $186,084,496 (includes $63,835,319 in mobile promotional wagers)
- Combined: $219,071,374
Prizes (Winnings paid to players)
- Retail: $28,234,802
- Mobile: $160,216,032
- Combined: $188,450,835
Hold (Handle less prizes paid)
- Retail: $4,752,076 (14.4%)
- Mobile: $25,868,463 (13.9%)
- Combined: $30,620,539 (14.0%)
Taxable Win (Amount remaining after paying winners and deducting promotional play and other amounts)
- Retail: $4,669,773
- Mobile: (-$38,276,855)
- Combined: (-$33,607,083)
Sports Wagering Tax (15% of the taxable win)
- Retail: $700,466
- Mobile: $4,262
- Combined: $704,728
Since the start of Maryland's sports wagering program in December 2021:
- Cumulative contribution to the Blueprint for Maryland's Future Fund: $6,129,760
- Cumulative expired prizes contributed to the Problem Gambling Fund: $1,043,521
Maryland's sports wagering market launched in December 2021 with the opening of five retail sportsbooks. Four retail locations and seven mobile sportsbooks have launched in 2022, and additional retail locations and mobile sportsbooks are expected to launch in the near future.
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