Maryland is about to enter “uncharted territory” with sports betting after Governor Larry Hogan signed House Bill 940 into law, legalising the practise and kicking off the regulatory process ahead of a full launch.
This opens the door for up to 60 sportsbook licences to be awarded in the state, the most of any legal US market, including well-established markets like New Jersey and Pennsylvania.
According to MarylandSharp.com sports betting revenue analyst Geoff Fisk, Maryland’s sports betting market might bring in more than $217 million when fully mature.
Fisk stated of the possibilities for sports betting in the jurisdiction: “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 levy a 15 percent tax on online sports betting operators, with a $217 million industry expected to generate $32.55 million in annual tax revenue. While mobile sports betting is expected to generate the majority of the market’s growth, Maryland could see up to $255 million in annual sportsbook revenue if it is combined with retail sports betting.
Fisk continued: “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 claims to have arrived to the $217 million estimate after conducting extensive research into other legal markets and comparing jurisdictions with similar populations.