Maine Hopeful for Olympics Betting Boom Despite Expert Predictions

Maine sports betting stakeholders are hoping for a gold-medal finish despite facing incredibly long odds.

In a recent interview with Mainebiz, Maine Gambling Control Unit Executive Director Milton Champion expressed his hopes that the 2024 Olympics will significantly boost Maine’s betting handle and tax revenue in the summer months. A strong two weeks in the middle of summer would go far to boost the state's handle, which has shown solid strides in Year 1 of legal Maine sports betting.

However, Jay Zagorsky, a professor at Boston University's Questrom School of Business who has studied sports betting, has expressed that this is unlikely.

"In general, I expect the Olympics to make a big impact on the hearts and minds of millions of fans but have little impact on the gambling industry's bottom line," Zagorsky told Mainebiz in an email.

Zagorsky cited that many players enjoy placing bets once events have already started. While some sports in the Olympics, like basketball and soccer, provide these opportunities, most events don’t have many live betting options. He also said that despite Team USA having stars like Simone Biles and LeBron James, a lack of familiarity with the majority of athletes and sports will deter bettors.

On that subject, Champion didn't offer much of a counterargument.

"Will it be an offset? I'm not sure," he told Mainebiz. "That remains to be seen. Personally, I have no clue who the participants (in the Olympics) are, so I think it's going to be interesting to see how they play out."

Maine’s Gambling Performance So Far

From the launch of online Maine sports betting in November 2023 to June 2024, the state has handled just under $318 million, with sportsbooks collecting revenues under $32 million. The state has taken $3.2 million in taxes from this amount.

Before sports betting launched, Champion mentioned studies that predicted state tax revenue between $3.8 million and $6 million per year. Champion indicated that Maine is currently on track to bring in $4.6 million in taxes in its first year.

Champion told Mainebiz, “We're in the middle range. Hopefully, we can get a little closer to the $6 million projection.”

The executive director also highlighted how results can vary from month to month. For example, March saw Maine’s highest sports betting handle to date, with over $47 million wagered. However, revenues and taxes reported were the lowest Maine has seen, with bettors winning more wagers (some of which undoubtedly came via Maine sportsbook promos, which further eat into operator profits).

“That’s the way it is,” Champion commented. "You have winners and you have losers. And in some of those months, Mainers have been picking winners."

History of Sports Betting in Maine

Maine first tried to legalize sports betting in 2019, with LD 553 passing the House and the Senate but not receiving a signature from Governor Janet Mills. At the beginning of the 2020 legislative session, she vetoed the bill. While lawmakers attempted to override the veto, the vote fell short of the two-thirds majority required.

In 2022, Gov. Mills added sports betting to a package agreed with local native American tribes with a 10% tax on sports betting revenues. Four sports betting licenses became available, with Caesars taking the first three and DraftKings taking the remaining license. Online sports betting launched in Maine on Nov. 3.