Maryland Collects $4.6 Million In Sports Betting Taxes For May 2023

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Written By Giovanni Shorter | Last Updated
Maryland sports betting revenue

Maryland Lottery and Gaming has released the official sports betting revenue and handle report for May 2023. This report shows that Maryland sportsbooks raked in $320,199,671 in wagers for the month from among the best sports betting sites in the state. This is the second-strongest betting month in the Old Line State. May’s wagering numbers have pushed the FY 2023 betting handle total to $2,636,900,834.

But how much tax revenue was generated from these bets?

Major Tax Contribution From Maryland Operators

Sportsbooks in Maryland saw a 13.3% hold rate on wagers for May. This led to $31,004,743 in taxable sports betting revenue after deductions for promo play. Ultimately the state saw $4,650,711 in Maryland sports betting revenue via tax contributions from sportsbooks. This represents a 16.9% increase month over month compared to April’s $3,864,686 in taxes.

Mobile Betting Dominates Again

The 10 mobile betting apps in Maryland saw the bulk of the action. Online operators reported $305,063,591 in sports betting handle, 95.2% of the betting market in May.

The number one operator during that stretch was FanDuel via its partnership with Live! Casino. FanDuel saw $146,314,218.06 in wagers for May 2023. This is 47.9% of the entire mobile betting market in Maryland. To date, FanDuel has seen $1,166,344,901.01 in waters for FY 2023.

DraftKings also saw a major hold on the market with $101,906,378.49, a 33.4% market share. DraftKings has seen $778,691,843.69 wagered so far in FY 2023.

Maryland Lottery And Gaming Report Breakdown

Handle (Amount players wagered, including free promotional wagers)

  • Retail: $15,136,080 (includes $20,281 in free promotional wagers)
  • Mobile: $305,063,591 (includes $10,894,943 in free promotional wagers)
  • Combined: $320,199,671

Prizes (Winnings paid to players)

  • Retail: $13,550,937
  • Mobile: $263,906,518
  • Combined: $277,457,454

Hold (Handle less prizes paid)

  • Retail: $1,585,144 (10.5%)
  • Mobile: $41,157,073 (13.5%)
  • Combined: $42,742,217 (13.3%)

Taxable Win (Amount remaining after deducting prizes, promotional wagers and other amounts)

  • Retail: $1,406,723
  • Mobile: $29,598,020
  • Combined: $31,004,743

Sports Wagering Tax (15% of the Taxable Win)

  • Retail: $211,009
  • Mobile: $4,439,703
  • Combined: $4,650,711

Since the inception of Maryland’s sports wagering program in December 2021:

  • Cumulative contribution to the Blueprint for Maryland’s Future Fund: $25,306,654
  • Cumulative expired prizes contributed to the Problem Gambling Fund: $2,102,783

Maryland has become a major staple in the sports betting industry. The strong mobile betting presence at Maryland sportsbooks will continue to elevate the market. This trend is only expected to continue later in the year with the return of the NFL season. This would mark the first football betting season online operators will be live in Maryland.

If Maryland can see these strong numbers so far ahead of football season, the untapped potential is quite large for this market.

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