Latest Sports Betting Tax Revenue For KY & MD; How Sportsbooks Affect Lottery in Massachusetts

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Written By Giovanni Shorter | Last Updated
Sports Betting News

This week’s legal sports betting news is highlighted by the official wagering report from the first two months of Kentucky sports betting. Also on the docket is how the Massachusetts Lottery is being affected by sports betting legalization. Additionally, Maryland saw a record-setting November month for wagering. Let’s take a look at all the recent sports betting news.

Kentucky Sports Betting Explored

During the Kentucky Horse Racing Commission meeting on Monday, a breakdown for Kentucky Sportsbooks was revealed. In September, sportsbooks saw $45,862,901 in wagers from locals. The state collected $321,000 in taxes from sportsbooks in September.

Online sportsbooks went live on Sept. 28, giving locals just a few days for statewide betting. In the first full month of online sports betting being available (October), operators reported $294,950,219 in handle. The state saw $7,618,787 in taxes in October.

Gov. Andy Beshear stated last week that Kentucky sportsbooks are on pace to “significantly exceed the $23 million in projected revenue” for annual sports betting. With the success of the early months, locals have clearly embraced the betting market in Kentucky.

Massachusetts Sports Betting Affecting State Lottery

The success of sports betting in Massachusetts appears to negatively affect the local lottery. The Massachusetts Lottery claimed that sportsbooks pushed the lottery out of the TV ad market. When speaking with WWLP, Lottery Executive Director Mark William Bracken stated that the lottery has essentially retreated from TV. Sportsbooks have outpriced them, raising advertising costs while the lottery continues to have a smaller advertising budget.

“The sports betting market has kind of just raised the bar and the amount of money that’s being spent. So it adversely affects all other advertisers because the costs for products go up,” Bracken told WWLP.

This will be the first year that the MA Lottery won’t run television ads during the holiday season. The lottery simply could not afford the competing TV ad space thanks to regulated sportsbooks. Additionally, sportsbooks have priced the lottery out of brand deals.

The MA Lottery has been partnered with the Boston Celtics since 2011 to be the presenting sponsor for the annual Heroes Among Us awards. This year, the Celtics tripled the cost, forcing the MA Lottery out.

“The Boston Celtics close to tripled that sponsorship this year, and we could no longer afford it because they know they can get a sports betting company to come in and pay triple what we were paying,” said Bracken. “So we’re being pushed out of the market in many, many ways.”

Unless the MA Lottery can increase its advertising budget, it is likely it will continue to lose out to sportsbooks.

Maryland Sports Betting Record-Setting November

The Maryland Lottery and Gaming released their November 2023 sports wagering report, and the latest sports betting news was exciting. November was a record-setting month regarding sportsbook handles for the Old Line State. Reports show $550,716,329 was wagered in November, the single highest monthly handle. The previous record was held by the $497,121,656 wagered in December 2022.

Mobile sportsbooks helped push the Maryland market to this new record, seeing $533,276,787 in wagers – 96.8% of the total market. Operators saw $41,628,982 in total revenue for November and $21,330,194 in taxable revenue after deductions. The state saw $3,199,529 in tax revenue.

Maryland November Sports Betting Breakdown

Handle (Amount players wagered, including free promotional wagers)

  • Retail: $17,439,542 (includes $16,016 in free promotional wagers)
  • Mobile: $533,276,787 (includes $28,649,664 in free promotional wagers)
  • Combined: $550,716,329

Prizes (Winnings paid to players)

  • Retail: $16,307,928
  • Mobile: $492,779,418
  • Combined: $509,087,346

Hold (Handleless prizes paid)

  • Retail: $1,131,614 (6.5%)
  • Mobile: $40,497,369 (7.6%)
  • Combined: $41,628,982 (7.6%)

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

  • Retail: $980,134
  • Mobile: $20,350,060
  • Combined: $21,330,194

Sports Wagering Tax (15% of the Taxable Win)

  • Retail: $147,020
  • Mobile: $3,052,509
  • Combined: $3,199,529

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

  • Cumulative contribution to the Blueprint for Maryland’s Future Fund: $46,253,210
  • Cumulative expired prizes contributed to the Problem Gambling Fund: $2,708,307

Maryland continues to thrive as a top sports betting market.