Maryland is to take sports betting “into uncharted territory,” after the state’s governor Larry Hogan signed House Bill 940 into law, legalising the activity and kickstarting the regulatory process before a full launch.
This paves the way for up to 60 sportsbook licenses to be granted in the state, which would become the highest of any legal US market, including established regions such as New Jersey and Pennsylvania.
MarylandSharp.com sports betting revenue analyst Geoff Fisk projects that Maryland’s sports betting market, at full maturity, could bring in more than $217m.
Fisk said of the jurisdictions sports betting potential: “Maryland takes the competitive sports betting business plan into uncharted territory. We’ve seen online sports betting thrive in New Jersey, with more than 20 different mobile wagering brands. Maryland is allowing triple that number, and it’s amazing to contemplate how that market will unfold.”
Maryland will charge a 15 per cent tax rate to online sports betting operators, with a $217m market potentially yielding $32.55m in annual tax revenue. While mobile sports betting is predicted to drive most of the market’s success, combined with retail sports betting, Maryland could see up to $255m in yearly sportsbook revenue.
Fisk added: “We’ll see many companies take their first shot at mobile sports betting in the Maryland market. Can the smaller sports betting start-ups compete with brands like FanDuel, DraftKings, and BetMGM? It will be intriguing to watch that competition play out, and see how Maryland emerges compared to other sports betting states.
“Maryland sports betting seems destined for success. The attractive tax rate and unprecedented opportunities for new sportsbook brands should lead to a win-win situation for the operators and the state.”
MarylandSharp says that it reached the $217m projection through careful analysis of other legal markets and by comparing states with similar populations.