Sports Wagering Contributes $704,728 to the State During November

December 28, 2022 | Financial

First nine days of mobile sports wagering handle totaled $186 million

Baltimore, Maryland (December 12, 2022) — With the launch of seven mobile platforms and a new retail __cpLocation, Maryland’s combined mobile and retail sports wagering handle during November 2022 totaled $219,071,374, and sportsbooks generated $704,728 for the state. Each sports wagering licensee contributes 15% of its taxable win to the Blueprint for Maryland’s Future Fund, which supports public education programs.

Maryland’s first seven mobile sportsbooks held eight hours of controlled demonstration wagering on November 21, and launched at 9 a.m. on November 23. In nine days of operations during November, the mobile sports wagering handle was $186,084,496. 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.

“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.”

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 __cpLocation, 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 chart available for download from the link above.

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 (Handleless 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 inception 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 __cpLocations and seven mobile sportsbooks have launched in 2022, and additional retail __cpLocations and mobile sportsbooks are expected to launch in the near future.

About Maryland Lottery and Gaming

Maryland Lottery and Gaming operates the Maryland Lottery and is responsible for regulatory oversight of the state’s casinos and sports wagering program. In this role, the agency provides direction and guidance to casino and sports wagering operators on financial, security, regulatory and licensing procedures. To keep Marylanders informed and to maintain transparency of casino and sports wagering operations, monthly financial reports are posted on mdgaming.com. Maryland Lottery and Gaming remind players to play responsibly and within their budget; resources are available at mdgamblinghelp.org or by calling 1-800-GAMBLER.

NOVEMBER 2022 SPORTS WAGERING DATA (Excel download)

SOURCE: Commission Meeting: 12/15/2022.