The Maryland sports betting industry continues to grow, with the state’s latest figures revealing a record $2.8 million worth of taxes collected in February, according to the Maryland Lottery and Gaming Commission.
It marks the second straight month of record highs for MD sports betting tax revenue, which has risen as untaxed promotions curtail.
While total betting handlel for February decreased slightly for the second month in a row, to $339 million, the figure included just $15.8 million in promotional bets. That is down 27% from January and 77% from December.
MD sports betting promos not taxed
Like Michigan and Ohio, Maryland allows all revenue from promotional bets to go untaxed, providing a significant incentive for sportsbooks to offer free bets at launch.
Other states like New York treat all betting revenue as taxable income. To generate more revenue, some states like Colorado and Virginia have adjusted the tax perk after launching with deductions.
Maryland is considering a number of changes to its sports betting law, such as banning certain college partnerships and more vetting for its operators, though the legislature has yet to take up promo tax treatment.
FanDuel at the front in Maryland
FanDuel led Maryland sportsbooks with $157.7 million in handle, including $7.3 million in promotions. It has been the top mobile operator in both categories since launch, offering more than $86 million in bet credits in less than four months.
It was followed in monthly handle by:
- DraftKings: $100.4 million
- BetMGM: $33.2 million
- Caesars: $15.9 million
- Barstool Sportsbook: $9.8 million
- BetRivers: $3.3 million
- PointsBet: $4.1 million
- Betfred: $406k
FanDuel held an MD sports betting-high of 14.7% in February. Since launching, FanDuel has accounted for more than 49% of all legal online bets in Maryland.
Fanatics retail off to slower start
Clothing retail giant, Fanatics launched its first sportsbook at FedEx Field earlier this year
It was the only operator (retail or online) to post a negative hold on the month, at -21.7%. It paid $0 in taxes to the state.
