Parlays, NBA Playoffs Help Maryland to Respectable Sports Betting Revenues in May

The latest revenue report from the Maryland Lottery and Gaming for May has been released. Despite a decrease in overall sports betting handle since August, the top sports betting sites in the state still had a successful month in terms of revenue.

Despite a decrease in Maryland sports betting activity over nine months, Maryland sports betting apps saw a boost in revenue thanks to the success of parlay wagers and professional basketball, surpassing totals from February, March, and April.

As always, FanDuel and DraftKings continued to dominate the market share in May in the state. Despite Maryland sportsbook promotions bringing in new customers during the NBA playoffs, none of the other sites came close to competing with the two betting giants in terms of handle and revenues.

Maryland registers $431.5 million handle in May

In May, Maryland’s top sports betting apps and physical locations collectively received $431.5 million in bets. The majority of this amount, $419.5 million, was generated through online platforms, while brick-and-mortar establishments accounted for $12 million.

Looking at the larger perspective, there has been a significant 34.8% year-over-year increase in accepted wagers, totaling $431.5 million in May 2023, compared to $320.2 million in the previous year. Despite this growth, it marks a nine-month low for the Maryland betting industry and a nearly $55 million decrease from the $486.3 million wagered in April.

Maryland sportsbooks have seen a significant 34.5% year-over-year increase, reaching a $2.44 billion handle year-to-date. The addition of May’s handle pushed Maryland’s total lifetime handle over $8 billion, making it the 14th state in America to achieve this milestone.

Gross sports betting revenue exceeds $51 million

Although the handle decreased, the Maryland Lottery and Gaming report revealed positive news with strong hold rates resulting in respectable revenues for state providers.

Maryland sportsbooks saw their sixth-highest monthly revenue total ever in May, with gross sports betting revenue reaching $51.1 million. This represents a 19.5% increase in profits compared to May 2023, when revenue was reported at $42.7 million. Additionally, there was a month-over-month increase of $700K from April’s total of $50.4 million.

Maryland’s top sportsbooks have seen a significant increase in gross revenue this year, with a reported $270 million in earnings so far. This marks a 19.5% jump from the revenue generated during the same period last year.

Maryland sportsbooks saw a significant boost in May revenue thanks to a 25.7% hold from parlays and an overall 11.8% hold. Parlays were a major driver of revenue, accounting for nearly 71% of the total, bringing in $36.2 million from a $140.9 million multi-bet wager handle.

Professional basketball also contributed to the state’s sports betting revenue, bringing in $109.6 million, which accounted for approximately 25.4% of the total May handle.

In May, $6.86 million in taxes were collected from $46.6 million in adjusted gross revenue, marking the second-highest tax revenue month on record for Maryland. This brought the year-to-date tax revenue in Maryland to nearly $30 million, an improvement of $11.3 million compared to the first five months of 2023.

FanDuel and DraftKings dominate

In May, FanDuel and DraftKings were the clear top performers among sportsbooks in the Old Line State.

In terms of handle and revenues, FanDuel outperformed DraftKings last month by accepting $195.2 million in wagers and reporting $27.2 million in revenues, while DraftKings accepted $137.7 million in bets and had $12.2 million in winnings.

In third place, BetMGM received $31.1 million in accepted wagers and $2.9 million in wagers for the month.

In May, Caesars recorded $17.5 million in wagers and $796,288 in revenue, followed by ESPN BET with $16.8 million in wagers and $1.4 million in revenues. Fanatics was the only other sportsbook with over $10 million in bets, bringing in $12.3 million in wagers and reporting $574,683 in revenues for the month.