First full month of online sports betting in Maryland nets nearly $500m in handle

Maryland got off to a roaring start in its first full month of online sports betting, generating $497.1m in total handle.

Of the nearly $500m in handle, just over 96% – or $478.3m – came from mobile bets placed through the state’s seven online sportsbooks.

Bettors did not fare well either, as the operators’ hold rate was an astronomical 17.2% – more than double the industry average of about 7%. That resulted in $82.3m in gross gaming revenue (GGR) for operators.

Operator revenue in Maryland is taxed at 15%, with the funds going to the Blueprint for Maryland’s Future fund, which supports public education programs.

However, because Maryland allows operators to deduct promotional spend from taxable win, the result was only $440,043 in contributions to the state for the month.

Operators handed out $70.9m in free bets in December, resulting in just $44,791 in funds back to the state from mobile betting.

High promotional spend is typical in the early days of a new state’s online market, with operators battling to secure precious market share. Following the initial land grab, promotional spend tends to level off a bit.

Maryland doesn’t limit deductions from promotions in the first full fiscal year of operation, but promotional deductions are capped at 20% of an operator’s taxable win from the first year beginning in Year 2.

FanDuel, the US online sports betting market leader, has jumped out to an early lead in Maryland, accounting for $236.2m in handle in December, or 47.5% of the market.

DraftKings was second at $157.8m, while BetMGM ranked a distant third at $42.3m.