The summer slowdown is almost here, but don’t tell that to the sportsbooks in Maryland. Maryland’s gaming market saw impressive earnings in May. This was notable given the limited sports events, with the NBA season winding down.
Maryland Lottery and Gaming reports that the state recorded a total sports betting handle of $431.5 million in May, marking an increase of almost 35% from the previous year. The operators in Maryland held nearly 12% of the stakes, resulting in players receiving winnings totaling more than $380 million for the month.
Maryland’s May handle total trails only New York ($1.978 billion) for the top spot among all states with legalized sports betting and is just ahead of Maine ($39.9 million), which rounds out the top 3.
Parlays Fuel the Sports Betting Surge in Maryland in May
Maryland’s sports betting operators reported another significant win in May—parlays. They held onto 25.7% of the money wagered on these multi-leg bets, the highest percentage since last June.
Out of the $51.1 million in total revenue, $36.2 million came from parlays, making up nearly 71% of the operators’ winnings. This is despite parlays only accounting for 32.7% of the state’s total $431.5 million bets.
May’s revenue ranks as the sixth-highest in the past 30 months, with an 11.8% hold rate placing it at 17th. Year-over-year, gross winnings increased by 19.5%, although the total amount bet grew by 34.8%. Last year, the win rate was slightly higher by 1.5 percentage points.
More Betting Means More Tax Revenue
Last month, Maryland’s sportsbooks contributed $6.9 million to the state, a notable increase from the $4.6 million in May 2023. This contribution represents 15% of their taxable winnings.
The state’s adjusted gross revenue (AGR) eligible for taxation reached $46.6 million, benefiting from a record low in promotional credits and bonuses at $3.2 million. This represents a significant decrease in promotional spending, down 70.9% from May 2023 and 71.3% from April’s $11.1 million.
The AGR for the month was the second-highest in the state’s history, generating nearly $7 million in state taxes. Additionally, the total revenue for the first five months of the year, at nearly $30 million, is $11.3 million more than the same period last year.
FanDuel and DraftKings Dominate in Maryland
The leading sportsbooks in the U.S. dominated the Maryland market in May, raking in $195.2 million in bets and contributing $4.1 billion in taxes to the Old Line State. DraftKings, a consistent second in the state, garnered $137.4 million in bets and $1.8 billion in tax revenue.
Other contenders trailed significantly: BetMGM’s handle stood at $31.1 million, Caesars Sportsbook at $17.5 million, and ESPN BET at $16.8 million in wagers.
But now that summer is here, there is typically the calm before the storm when football starts in August. With fewer sporting events to bet on, revenue usually drops in June and July. We’ll watch how Maryland’s numbers hold up in the hot weather.
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