BALTIMORE — March Madness is in full swing and for Maryland sports fans placing their bets on the games, it's the biggest event since the Super Bowl in February.
Since mobile gaming launched last fall, these major sporting events also can mean big money for gamblers, sportsbook operators, and the state.
Maryland made $2.8 million in tax revenue off of retail and mobile sports betting in February, $2.1 million in January, and now all eyes are on March.
Maryland Lottery and Gaming director John Martin said “with March Madness and all of the excitement over the next couple of weeks, we expect to have another good month.”
Martin said it’s the sports calendar that dictates revenue.
Between the NFL playoffs and college bowl football games, January was packed with football and with bettors wagering more than $441 million.
February had just one game, the big one, as in the Super Bowl, in which bettors wagered nearly $340 million.
It means bets were down more than $100 million month-over-month, but profits for sportsbook operators were up, raking in $14 million in January and more than $18 million in February.
“The sportsbooks are all starting to ease back a little bit on their promotions spend, coming back down. So, we don’t see as many of the free ads and the promo plays out in the marketplace,” Martin said.
“Beginning next year in 2024 they can only deduct 20% from their previous years taxable win, which means they’re going to start to lessen the amount of free play and promotional spend this year in 2023, so they have something left in the till for 2024,” Martin added.
The payoff also will get bigger for the state.
“And so that leveling off, we anticipate on an annual basis, starting in 2024, that tax revenue should be in that $25-30 million range, annually,” Martin said.
The winning recipients are Maryland schools.
“It’s very rewarding, I mean that was the intent of the legislation, was to earmark dollars to the Blueprint for Maryland’s Future fund,” Martin said.
In February alone, bettors wagered $14 million in-person, but placed more than $325 million in mobile bets. More people seem to prefer to place their bets online from the comforts of home than getting out of the house and going to a retail sportsbook.
“Ironically, I think March Madness may give us a chance to see some of that soften a little bit. You know, by nature of the tournament itself, it’s a very social atmosphere. People like to go out to venues with friends, watch games, multiple games at the same time,” Martin said.
Martin believes it will take a full year of mobile gaming in Maryland to see if mobile gaming lives up to expectations. Martin expects one of the biggest impacts to be the return of football this fall, as it will be the first full football season sports fans will be able to use online gaming to bet on the games.
Meanwhile, players say the convenience of mobile gaming can’t be beat, but with the ease of gambling on the go it can become an addiction for some.
“We know that about 95% of the people who wager do have a plan, do play responsibly, we also know about 5% of the population struggles with that,” Martin said.
“We advocate that people please play responsibly, have a plan, stick to it, budget your time, budget your money, keep it fun, and know the odds of the games you’re playing,” Martin added.
Sportsbook operators also have to submit a responsible gaming plan to the state.
Free help is available to cope with a gambling addiction for you or someone you care about though MDGamblingHelp.org or by calling or texting 800-GAMBLER.
For more information, contact the University of Maryland School of Medicine Center of Excellence on Problem Gambling.
