The world of sports betting has experienced a monumental shift in the United States in recent years as more and more states have legalized this popular form of gambling. Maryland, in particular, is one of the latest states to join the trend, with lawmakers approving a sport betting measure in 2021.
The first nine days of mobile sports betting alone saw an impressive $186 million wagered, resulting in millions of taxes collected. Money has become essential to Maryland’s economy as a significant portion is donated to the ‘Blueprint for Maryland’s Future Fund.’ All licenses contributed 15% of their taxable winnings, which can be used for educational solutions, health care programs, and other local initiatives.
Since then, the state has seen a positive economic shift due to its newfound ability to earn legal income from this activity. For example, in 2023, PlayMaryland saw an increase of $75 million in taxes from Maryland online sportsbooks. According to projections, operators of brick-and-mortar and online sportsbooks might earn more than $481 million this year from more than $4 billion in legal bets. Other states are taking notice, so there are other sportsbooks like Caesars Sportsbook Kentucky and many others getting ready for the regulations to pass.
This article will explain how Maryland benefits from increased sports betting options and what it means for residents and business owners.
Impact of Sports Betting on Maryland
Sports betting in Maryland had an immediate impact on the state’s economy. In the first month, five casinos launched retail sports betting and were able to take in $26.9 million in bets. That number has only grown since then, with mobile betting being legal for less than a month and adding more than $700K to state revenue.
The Maryland General Assembly granted as many as 60 mobiles and online betting licenses, with a 15% tax rate based on gross revenue being contributed to the state’s coffers. This influx of money will help fund education, infrastructure, health care, and other programs.
Additionally, the lure of legal sports betting positively affects Maryland tourism. Sports bettors from surrounding states have been flocking to Maryland’s casinos to take advantage of their offerings—a trend that appears likely to continue going forward.
Betway, in particular, has been one of the most popular online sport betting providers since its launch. From football to NFL Betting and beyond, you can already tell how much it contributes significantly to the local economy regarding taxes and consumer expenditures.
Increased Revenue From Sports Betting
Analysts and industry professionals predict a thriving mobile sports betting market in Maryland. Steven Ruddock, a senior gaming analyst at American Affiliate, estimates that the state might generate more than $30 million in tax revenue yearly. Online sports betting, like Betway, will account for most of that.
Ruddock visualizes operator revenue from online sportsbooks to be between $200 and $225 million. Based on that, the state will earn between $30 and $33 million in tax income from that amount. The higher end of that revenue range will equal online sportsbooks producing more than $3.2 billion in the first year’s betting handle. That is if an average hold of 7% is maintained.
Thanks to the adoption of online and mobile wagering platforms, Maryland sports bettors can access a more comprehensive range of betting options, making the activity much more popular. Even better, every time someone bets, Maryland also benefits due to taxes being applied on each wager.
Tourism in Maryland
Sports tourism has become an increasingly attractive option for states wishing to inject funds directly into their economies. Maryland is no different, and with the advent of legal sports betting, it is now poised to reap the benefits.
1. Regulation Expenses Reimbursement
To support local communities, Maryland sets aside 5% of sports betting revenue each year to reimburse for regulation expenses. These allocations are positive economic incentives, allowing funds to be diverted from taxes and placed into local public services.
2. Increased Mobile Sports Betting Use
Since the introduction of legal sports betting in Maryland, mobile sports betting has seen a sharp rise in usage. According to statistics gathered until 2023, legal mobile sportsbook users are estimated at 70%. This indicates an increased demand for online wagering and an overall boost in Maryland’s economy.
The Future of Sports Betting in Maryland
The success of sports betting in Maryland will only continue to rise. It’s estimated to bring in $200-225 million in revenue by 2023. Not only does the state collect the 5.75% tax on online sports betting. Those wagers also help contribute to The Education Trust Fund, getting more money for schools and increasing the quality of education for children across Maryland.
In addition, with ten retail and seven online sportsbooks currently taking bets in Maryland, there is ample opportunity for growth in both categories moving forward. The convenience of placing a bet from your device anytime and anywhere is becoming increasingly popular, as well as the ability to support local businesses that offer retail sportsbooks.
Maryland has made the right decision by legalizing sports betting. And with the right amount of growth and similar legislation around the country, the future of sports betting looks bright in this state.
