Parlays, NBA Playoffs Help Maryland to Respectable Sports Betting Revenues in May
The Maryland Lottery and Gaming May revenue report is out, and despite the lowest overall sports betting handle total since August, the best sports betting sites in the state still enjoyed a respectable revenue month.
Maryland sports betting apps were able to lean on parlay wagers - which produced a stellar win rate - and pro basketball to a revenue total that bettered February, March, and April. That came despite a nine-month low in Maryland sports betting activity.
As per usual, the "Big Two" of FanDuel and DraftKings dominated the state’s May market share. None of the other sites came close to matching the two betting behemoths in terms of handle and revenues, even with Maryland sportsbook promos attracting new customers during the NBA playoffs.
Maryland registers $431.5 million handle in May
Maryland's best sports betting apps and retail providers combined to take in $431.5 million in wagers in May. Nearly $419.5 million came from the state's online sites, while brick-and-mortar facilities made up the remaining $12 million.
In terms of bigger picture, $431.5 million is a vast 34.8% year-over-year improvement from the $320.2 million in accepted wagers that the state's best sportsbooks reported in May 2023. However, it is a nine-month low for the Maryland wagering scene and a nearly $55 million month-over-month drop from the $486.3 million wagered in the state in April.
Year-to-date, Maryland sportsbooks have combined to a $2.44 billion handle, which is an impressive 34.5% year-over-year improvement from the first five months of last year. With May’s handle added in, Maryland’s best sportsbooks eclipsed the $8 billion lifetime handle mark - the 14th state in America to reach that milestone.
Gross sports betting revenue exceeds $51 million
Despite the drop in handle, good news from the Maryland Lottery and Gaming report came in the form of strong hold rates leading to respectable revenues for state providers.
The gross sports betting revenue of $51.1 million in May was the sixth-highest monthly revenue total ever for Maryland sportsbooks in their 30 months of operation. The revenue figure represents a 19.5% year-over-year increase in Maryland sportsbook profits from the $42.7 million reported in May 2023, and it's a nice $700K month-over-month jump from $50.4 million in April.
So far this year, Maryland’s best sportsbooks have reported $270 million in gross revenue, which is a 19.5% spike from the same five-month period last year.
Maryland sportsbooks can thank a 25.7% hold from parlays and an overall 11.8% hold for the respectable May revenue figures. Parlays accounted for nearly 71% of the overall revenue total for state providers - that’s $36.2 million from a $140.9 million multi-bet wager handle.
Pro basketball also helped the state’s sports betting bottom line. It was responsible for $109.6 million, or about 25.4% of the overall May handle.
Meanwhile, $6.86 million in taxes resulted from $46.6 million in adjusted gross revenue in May, which was the second-best tax revenue generating month ever for the Maryland scene. May’s totals took the year-to-date tax revenue in Maryland to almost $30 million, which is $11.3 million better than through the first five months of 2023.
FanDuel and DraftKings dominate
FanDuel and DraftKings were far-and-away the top performing sportsbooks in the Old Line State in May.
FanDuel topped both handle and revenues, accepting $195.2 million in wagers last month and reporting $27.2 million in revenues. DraftKings accepted $137.7 million in bets and had $12.2 million in winnings for the month.
BetMGM rounded out the top three with $31.1 million in accepted wagers for the month and $2.9 million in wagers.
Next was Caesars with $17.5 million in wagers in May and just $796,288 in revenue. ESPN BET checked in a somewhat disappointing fifth with $16.8 million in wagers and $1.4 million in revenues, while Fanatics was the only other sportsbook to have over $10 million in May bets. It took in $12.3 million in wagers and reported $574,683 in revenues for the month.
