Maryland Online Sports Betting Could Generate $225M in First-Year Revenue

Legal online wagering could bring nearly $34 million in tax revenue to the state in year one.

NEWS PROVIDED BY

Props.com

October 20, 2022 10:00 ET

LAS VEGAS, Oct. 20, 2022 – Legal online sports betting in Maryland could generate nearly $34 million in first-year tax revenue for the state, according to projections from Props.com.

Maryland gaming regulators expect online sportsbooks to begin launching before the end of 2022. Several factors point to Maryland eventually evolving into a thriving mobile sports betting market.

Maryland Set For Sports Betting Success

Props.com analyst Steven Ruddock predicts that Maryland could evolve into status as one of the top ten sports betting markets in the nation.

“The main reason Maryland can be a Top 10 sports betting market is its strong economic factors,” Ruddock wrote in a projection analysis for Props.com. “Maryland ranks first in median household income, which means plenty of residents have plenty of disposable income.” 

“Also working in the state’s favor is its sports betting industry’s open, competitive structure. With up to 60 online licenses available, Maryland could have the most online sports betting operators in the U.S. That will help market penetration via advertisements and customer conversion, thanks to lucrative promotions.”

State sports betting laws allow Maryland gaming regulators to award up to 60 online sports betting licenses to prospective operators. The Sports Wagering Application Review Commission (SWARC) can grant those licenses to industry giants like DraftKings and FanDuel, as well as small businesses such as sports bars and restaurants.

The possibility of up to 60 different mobile sports betting operators should make Maryland one of the most competitive markets in the U.S. Operator revenue will be taxed at 15%.

The Maryland Lottery and Gaming Control Agency could approve the first wave of the state’s online sportsbooks to start taking bets by late November or early December.

Maryland Online Sportsbooks Could Produce $225 Million in First-Year Operator Revenue

Props.com projects that Maryland online sports betting sites could produce as much as $225 million in the first year of operations in the state. That figure would yield $33.75 million in sports betting tax revenue for the state.

According to Ruddock, operator revenue could exceed $250 million by the third year of legal online sports betting in Maryland.

Maryland’s vibrant sports fan base, proven success in the gambling industry, and proximity to Washington D.C. should add up to a thriving sports betting market.

“Any discussion of Maryland sports betting has to include the flailing Washington, DC sports betting market,” Ruddock wrote. “Because of the DC Lottery’s failures, the Terrapin State is in a prime position to entice DC residents to take the short trip into Maryland to place sports bets through one of its many sports betting apps.”

Maryland bettors already enjoy access to retail sports betting at in-state casinos. Legal online sports wagering, however, will allow Maryland residents and visitors to register, deposit, bet, and cash out from anywhere in the state.

For more analysis and news on the Maryland sports betting industry, visit Props.com.

Contact: Geoff Fisk, Senior Writer at Props.com geoff.fisk@amaff.com

SOURCE: Props.com