Following a period where the legislature concentrated on protecting gamers against problem gambling, Maryland’s sports betting industry is still growing. The market generated almost $7 million for education last May and market experts project the revenue will increase significantly in June with the ongoing Euro 2024 Championship.
While state contributions have increased alongside the number of legal sportsbooks in Maryland, so have the concerns about the transparency between players and operators. Problem gambling is also a hotly contested topic in the market despite the legislature’s efforts to protect potential players. Here’s a closer look at Maryland’s thriving sports betting landscape, revealing historical and current market state, growth analysis, and betting preferences.
Historical context and current market state
Maryland’s sports betting industry started with a meager $16.5 million in revenue in 2021. However, quickly grew as online sportsbooks established their presence and punters became more engaged. By 2023, the total sports betting revenue in Maryland had grown to over $4.6 billion, a significant difference from the early days.
The revenue reported from Maryland’s sports betting market highlights the industry's rapid growth and effective adaptation of sports betting platforms to the needs of the bettors. The operators’ strategic marketing efforts paired with the state’s regulatory framework have played key roles in accelerating the market’s growth.
Annual and monthly growth analysis
With over $4.6 billion in revenue, 2023 was a turning point for Maryland’s sports betting market. This landmark year was powered by the strategic expansions of different operators and the integration of mobile sports betting platforms. These mobile platforms are currently dominating the state’s legal sports betting market and bettors can use sites like
WinComparator to confirm the legitimacy of their offers.
In January 2024, Maryland recorded $441.5 million in sports betting revenue, with the monthly taxable win amounting to $55 million and the state’s contribution standing at $8.2 million. The state’s hold in January was 14.7% higher compared to the same month in 2023, propelled by NFL playoffs. Additionally, the prizes paid to sports bettors amounted to $465 million, representing a 21.8% year-on-year growth.
Maryland’s sports betting market took a dip in February compared to January’s results, but their $442.5 million betting handle represented a 30.4% increase compared to February 2023. Since February, the state’s sports betting revenue has grown every month to reach a handle of $431 million in May and contributing almost $7 million to public education.
Sports betting preferences & revenue streams
Basketball is the most popular option for sports bettors in Maryland, with most people betting on the NBA and NCAA tournaments. However, the sports betting diversity in the state is notable, with increasing bets on less popular sports like tennis, soccer, and baseball.
That reflects a sophisticated betting market that caters to diverse interests. The change in preferences has also influenced revenue streams, helping operators maintain profitable margins despite fluctuating hold percentages.
Opportunities and challenges ahead
While the market’s revenue trajectory is positive, the industry is facing several challenges. That includes regulatory adjustments, stiff competition from other states, and the need for tech infrastructure to improve the user experience. The market’s potential saturation by sportsbooks also poses a strategic challenge for companies to innovate continually.
In the meantime, Maryland recently overcame legislative hurdles that hindered the expansion of their gambling market with the rise of online casinos. While the online casino bill successfully passed the House, it encountered huge opposition in the Senate because of concerns over cannibalizing traditional casinos and gambling addiction.
What lies ahead?
Maryland’s sports betting market is a testament to substantial economic contributions, strategic growth, and a growing cultural acceptance of sports betting. This growth is enhancing the state’s economic profile and the trend will continue in the coming months. As such, market experts predict Maryland’s sports betting market in 2024 will surpass the $4.62 billion revenue reported in 2023.
