How much tax revenue could we see from Maryland sports betting in the first year?
By Tyler Wombles
As sports betting ramps up in Maryland, with retail betting now live and online gambling to come, it’s fair to wonder how much tax revenue the industry will bring to the state.
A generalized figure for Maryland’s sports betting revenue is not yet available, as the market just launched in the state in January, but there are several clues that may show how much the community can benefit financially from the entry of sports betting into the state.
Here’s a look at the tax revenue we could earn from Maryland sports betting in the first year:
More than $38 million in tax revenue is possible
Those expecting Maryland to record tax revenue in the tens of millions may be in luck.
There is a chance that Maryland could see over $30 million in tax revenue from mobile betting alone, which would be a big boost to the local economy. Combining this with the money retail betting is expected to bring in proves key to unlocking the overall tax revenue puzzle.
Online sports betting has not yet launched in Maryland, but it will cause a stir when it does. In other states, mobile betting accounted for a large majority of bettor activity and therefore generated the majority of revenue.
Online sports betting could bring in up to $217 million in annual revenue, according to projections by Maryland Sharp. With the state taxing betting revenue at 15%, that would mean Maryland would earn $32.55 million in tax revenue from online sports betting alone.
Add in retail betting and the grand total of annual sports betting revenue is projected to be $255 million. In total, with mobile and retail betting projections combined and everything taxed at 15%, the state could bring in over $38 million in tax revenue.
Keep in mind, however, that with the uncertainties that come with creating an entire retail sports betting industry and then turning around and doing the same for the online market, the numbers may vary or be less than any projection.
It’s easy to see why mobile betting could take Maryland by storm. This is the case in many other states that have legalized and successfully launched sports betting. Since the online component allows punters to deposit money wherever they are, instead of having to travel to a physical sports betting location, this is a significant share of the market. sports betting, wherever they are.
In New York, which instituted mobile sports betting in early January, mobile betting brought in more than $3.5 billion in wagers in just two months, according to Politico. While Maryland isn’t nearly the size of New York and will therefore see a smaller number of players, the Empire State’s huge turnout proves just how much bettors will be flocking to mobile gaming. they have the opportunity.
Numbers from other states could give clues
For more clues about how much tax revenue Maryland betting could bring in, other states could be the key.
New York saw $70 million in tax revenue alone in its first month of operation, the New York Post reported. While Maryland wouldn’t see as much money simply due to the different sizes of the two states, it’s fair to assume it would see strong participation for mobile betting like New York, which celebrated the sizable revenue numbers. .
“Over the past month, we have seen how mobile sports betting can be an economic engine for New York, generating significant funding for our schools, youth sports and much more,” Governor Kathy said. Hochul, according to The New York. To post. “As this new industry continues to grow, New York will ensure we have the resources and guidelines in place to make it a success for all.”
Tax revenue estimates are even available for states that have not yet legalized or launched sports betting.
In Missouri, tax revenue from sports betting could be more than $15 million, according to the St. Louis Post-Dispatch, which cited a recent legislative analysis. It’s another state where some lawmakers and supporters are pushing for the extra revenue that sports betting could bring to local governments.
“Every year that Missouri waits is another day when consumers are unprotected and there is money on the table,” iDevelopment and Economic Association executive director John Pappas said, according to the St. Louis Post Dispatch. “It just doesn’t make sense to be on an island when literally every state around it will have legal sports betting.”
Just as betting handles and profits have come in droves for states that have legalized and instituted sports betting, tax revenue has proven to go in the same direction. There’s no reason this can’t be true for Maryland as well, which could pocket a significant amount of tax revenue as retail betting continues to grow and mobile betting finally comes online.