The delay is also costing jobs, as gaming companies look to other states for expansion. To put into perspective how much money is at stake, let’s take a look at how much revenue Colorado and Louisiana are generating from mobile betting.
Colorado And Louisiana Figures As Basis For The Potential Revenue
Legalized sports betting has been a major economic force in recent years, with revenue generated from taxes imposed on bookmakers. There are however many different approaches taken by states when it comes to how much one needs before they can bet legally- some have rates as low as 6% while others demand more than 50%.
We can use the states of Colorado and Louisiana to have an overview of how much tax revenue could Maryland generate. Colorado and Maryland’s populations are on the same level while Louisiana and Maryland may have a quite similar story as both offer retail wagering before legalizing online sports betting.
The Colorado sportsbook has been a lifeline for many people during the COVID pandemic, and it’s only grown into one of their top-10 states in terms wagers placed. Through 12 months worth (through 3rdQ), they’ve posted almost 165 million dollars.
With Maryland tax rates at 15%, If you assume this lower-end projection will be achieved since there was virtually no betting before January 2020 when online gambling went live, then yes: It would generate a little less than USD 25 Million in Tax Revenue.
The launch of online betting in Maryland is also a big deal. If it has been established for an entire year, there’s no way the first month’s profits are lower than $100 million.
On the other hand, Louisiana launched retail betting on October 31, 2021, before online wagering was introduced in January 2022. Although total bets increased 165% during the first full month of mobile gambling (February), brick-and-mortar stores’ handles dropped 44%. Mobile games accounted for 88 percent of all February’s gaming cash flow worth $11 million.
Maryland Online Sports Betting
Mobile betting apps are not yet available, the Maryland mobile industry could be up and running by the second half of 2022 before the start of the 2022 NFL Season but delays are expected. There’s also potential for 60+ sport-based gambling websites like BetMGM, DraftKings, and FanDuel with 47 retail locations at full maturity.
Over the past year, Maryland has seen an increase in sports betting. Maryland’s sports betting tax rate is set at 15% with revenue going towards the state’s Blueprint for Maryland’s Future Fund.
With 2.8 million dollars being contributed to their Blueprint for Future Fund, revenue from December 2021 through June 2022 has an 11% hold rate which is higher than the 7% national average and fourth overall when compared side-by-side with the other 25 states.
This higher-than-average hold percentage flight demonstrates the potential of Maryland sports betting to be one of the leading states in this industry as it moves forward.