Gambling is alive and well in Old Line State. Maryland sports betting and gaming from all sectors contributed nearly $1.6 billion, trailing only income, sales, and corporate taxes in revenue contributions to the state.
Marylanders Roll the Dice
Casinos generated the most money for the Old Line State last fiscal year, producing a whopping $2.06 billion in gross revenue which was up 2.9 percent from last fiscal year. According to the annual report by Maryland Lottery and Gaming, $848.1 million of that money was earmarked for the state, which was 1.9 percent north of what the casino operators paid the state last fiscal year.
Six casinos combined for that impressive contribution and they are:
- MGM National Harbor
- Live! Casino & Hotel
- Horseshoe Casino Baltimore
- Ocean Downs Casino
- Hollywood Casino Perryville
- Rocky Gap Casino
State Lottery Posts Impressive Numbers
Casino gaming may have led the revenue parade but the Maryland State Lottery was not far behind. According to the annual report, sales increased by 3.8 percent to $2.764 billion which, after prize payouts and commissions to vendors, earned the state $714.3 million, up 6.3 percent from FY 2022.
- Profit to the state: $714.3 million, a 6% increase from FY2022’s $673.7 million
- Total sales: $2.764 billion, a 3.8% growth from FY2022’s $2.66 billion
- Player prizes: $1.73 billion, an increase of 2.2% from last year’s $1.695 billion
- Retailer sales and cashing commissions: $219.9 million, 8.3% up from the FY2022’s $203 million
- Scratch-off sales: $1.06 billion, 5.3% growth from last year’s $1.01 billion
- Powerball sales: $157.8 million, 23.7% up from FY2022’s $127.6 million
Sports Betting & DFS Contribute Millions
Although revenue derived from sports betting is not on par with the cash cows that are casino and lottery gambling, the books still generated plenty of money for FY 2023, particularly when one considers that mobile betting was not around for the first 4 ½ months of FY 2023.
Retail betting in Maryland received the green light in December 2021. Still, the big money is generated through online sports betting where making a bet is as easy as picking up your mobile device as opposed to taking a ride to the nearest sportsbook.
And so, on November 23, 2022, mobile betting launched, and by the time the fiscal year ended on June 30, 2023, there were 10 retail and 10 mobile betting sites with more having already found in FY 2024.
The roughly seven-month handle in Maryland was $2.9 billion with $2.5 billion paid to bettors, leaving roughly $400 million in gross revenue to the sportsbooks with $25.3 million sent to the state. Daily fantasy sports, aka DFS, contributed $1.2 million to the state government in the last fiscal year.
Where Does the Money Go?
Proceeds from casino gaming revenue in FY 2023 were divided up as follows:
- Contribution to the Education Trust Fund: $622.7 million (1.8% up from FY2022’s $611.6 million)
- Small, Minority, Women-Owned Business Fund Contribution: $19.85 million (1.4% increase from FY2022’s $19.58 million)
- Problem Gambling Fund Contribution: $4.48 Million (0.6% increase from FY2022’s $4.45 million)
Proceeds from sports betting revenue in FY 2023 went to Blueprint for Maryland’s Future Fund, which supports public education programs in the state: $25.7 million in FY 2023.
Expired sports betting winnings go to the Problem Gambling Fund which received $1.2 million in FY 2023.
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