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November Sees Rise in Maryland Sports Betting, Yet Tax Revenues Decline

Quick Intro

In November, Maryland experienced a record-breaking sports betting handle of $550.72 million, eclipsing December 2022’s $497.12 million. Online betting played a significant role, contributing $533,276,787 or 96.8% of this total. This impressive performance marks a 13.99% increase from October’s $483.15 million handle, and with the football season playoffs around the corner, December might witness even higher numbers.

Maryland’s sports betting landscape, which began in December 2021 with five retail locations, has now expanded. By November 2022, seven online sportsbooks had debuted, and currently, the state boasts 13 retail venues and 12 mobile operators, with more expected to join soon.

Analyzing the Impact on Maryland’s Public Funds

November’s sports betting performance in Maryland, while record-setting in terms of handle, raises questions about its impact on public funds. Despite the high betting volume, the decrease in tax revenue is notable. This decline could suggest a need for a closer examination of the tax structure and efficiency of revenue collection in the sports betting industry. Understanding these dynamics is crucial for maximizing the benefits of sports betting to Maryland’s public programs, especially education, which is a key beneficiary of the sports betting tax revenue.

Sports Betting Tax Contributions in Maryland See a Decrease

Maryland’s combined 13 retail and 12 mobile sportsbooks contributed $3.20 million in state taxes in November, down by 44.95% from the previous month. This breakdown shows online gambling’s contribution at $3,052,509, while retail sportsbooks added $147,020. Despite a robust handle, adjusted revenue for November stood at $21.3 million, a 41.84% decrease from October’s $36.68 million.

The sportsbooks’ 15% tax on their taxable wins benefits the Blueprint for Maryland’s Future Fund, which supports educational initiatives. Since December 2021, the fund has received $46,253,210, with the Maryland Problem Gambling Fund accruing $2,708,307.

ESPN BET Makes Its Mark in Maryland

ESPN BET (Hollywood Casino), launched in Maryland on November 14 under PENN Entertainment, quickly became a notable player, securing the fourth-highest handle in the state at $33.31 million. FanDuel led the market, closely followed by DraftKings, together accounting for over $400 million of the total handle.

The detailed handle and revenue for major operators in November are as follows:

  • FanDuel: $241,690,679 handle, $19,508,264 revenue
  • DraftKings: $165,857,068 handle, $7,335,201 revenue
  • BetMGM: $35,979,048 handle, $1,115,828 revenue
  • ESPN BET: $33,309,326 handle, $0 revenue
  • Caesars Sportsbook: $25,502,078 handle, $191,645 revenue
  • Fanatics Sportsbook: $19,015,115 handle, $0 revenue
  • BetRivers: $5,170,104 handle, $2,693 revenue
  • PointsBet: $3,386,601 handle, $61,765 revenue
  • Betfred: $1,171,452 handle, $0 revenue
  • Parx Interactive: $877,283 handle, $19,520 revenue
  • Crab Sports: $761,684 handle, $17,700 revenue
  • SuperBook: $556,342 handle, $0 revenue

Final Thoughts

Maryland’s sports betting scene witnessed a historic high in November with a handle surpassing half a billion dollars. While online betting dominated, contributing significantly to this achievement, there was an unexpected decrease in tax revenue. This decline prompts a reevaluation of the current tax system and its effectiveness in bolstering public funds, particularly for educational initiatives. As the state continues to grow in this sector, refining its approach to taxation and revenue collection will be essential to ensure that the benefits of sports betting extend to the broader community.

 

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