A lawmaker in a second state with legalized online sports betting is looking to roll back that decision.
Sen. Joanne Benson has filed SB 1033, which would allow retail wagering to continue in Maryland but would repeal the parts of the law legalizing online wagering. As part of the bill, active online operators would receive partial refunds on their license fees if the bill is passed.
The bill would go into effect on Jan. 1
MD retail revenue more than halved after online launch
Maryland had a relatively uncommon sports betting rollout where retail sportsbooks opened long before online operators launched. The first retail books started taking wagers in December 2021, with online operators opening up shop almost a year later in 2022.
With the different launches, the state, and state casinos and retail sportsbooks, had a very clear sense of the impact online wagering had on retail bottom lines. In most states with both options, well over 90% of wagers are placed online.
During testimony about potentially allowing online casinos in the state, multiple witnesses mentioned the sharp downtick in retail sports betting once online launched. Some casino employees also noted that retail sportsbook employees were laid off as a result.
Benson, who serves on the Senate Budget and Taxation Committee that hosted the hearing, was particularly critical of the idea of regulating online casinos during testimony. She also called attention to the fact the bill, like the sports betting bill, claims to have means for minority business entities to participate in the industry, but that the barriers to entry are too high.
Online handle outpaces retail peak by 15X
The best month of retail-only sports betting in Maryland netted $39 million in handle. By comparison, the most recent revenue report from Maryland Lottery and Gaming showed that the busy sports month of January had half that amount, with $17.6 million worth of in-person wagers.
However, during January online sports betting also produced $601 million in handle. While retail handle went down substantially, overall handle and, in turn, tax dollars for the state, increased more than fifteen-fold.
That tax revenue could increase even further should Gov. Wes Moore’s proposed budget get approved. In his proposal, he suggested doubling the current sports betting tax rate from 15% to 30% and also put forth a plan to increase table games taxes from 20% to 25%.
Benson’s bill comes on the heels of a similar piece of legislation out of Vermont, which would repeal online sports betting just a year after launching. It would also remove the state lottery.
