NFL Losses Drag Down Maryland Sportsbook Revenue For February

Maryland Lottery and Gaming reported $43.4 million in gross sports betting revenue for February on Monday as operators failed to notch a double-digit hold for just the third time in 16 months since sports betting apps have been available in the Old Line State.

The winnings were still an 8% increase from February 2023, which was the first time Maryland bettors had access to mobile wagering for the Super Bowl. While the state agency did not release handle and revenue figures specific to Super Bowl LVIII, it appears the public fared quite well with its wagers placed in Kansas City’s 25-22 overtime victory over San Francisco — operators paid out $4.5 million above the $13.2 million worth of pro football wagers placed in February.

Handle totaled $442.6 million for the 29-day month, up 30.4% from last year. Operators finished with a 9.8% hold for the month as February joined August 2023 (9.4%) and November 2023 (7.6%) as the only months the house failed to attain a 10% hold on gross revenue since the first mobile bets were accepted in November 2022.

Handle was down 18.8% from January’s $545 million, while gross revenue was 45.7% lower compared to the $80 million in operator winnings from the previous month. The 9.8% hold was nearly 4.9 percentage points lower than the 14.7% win rate to kick off 2024.

The state was able to levy its 15% tax on $28.1 million in adjusted gross revenue after deductions for promotional play and the federal excise tax, resulting in an inflow of $4.2 million into state coffers. The AGR as a percentage of gross revenue in the first two months has been 67.3%, more than double the 32.8% from January and February last year combined. Adjusted revenue is up 153.6% compared to 2023, resulting in tax receipts being up $7.5 million.

ESPN BET claims fourth with no deductions for promo spend

February running Top 10 #SportsBetting handle by state:

1 New York $1.77B
2 MARYLAND $442.6M
3 TENNESSEE $378.2M
4 West Virginia $38.8M
5 Maine $32.3M
6 Montana $4.7M
7 TBD
8 TBD
9 TBD
10 TBD#SportsBettingX #GamblingX

— Chris Altruda (@AlTruda73) March 11, 2024

February’s numbers showed FanDuel, DraftKings, and BetMGM taking the podium spots for handle, while ESPN BET held off Caesars for fourth. The PENN Entertainment-run sportsbook had a $22.2 million handle, down 38.2% from January, and the 5.2% market share was notably short of its first-year target of 7%. ESPN BET reported no promotional spend for the month as it entered February with a deficit of $10.5 million in adjusted gross revenue.

It had a 7.9% hold in February as it claimed more than $1.7 million in gross revenue. The adjustable revenue was just shy of $1.7 million as ESPN BET chopped its deficit to slightly more than $8.8 million in negative AGR.

FanDuel and DraftKings did not sit idly while ESPN BET did not report any promotional outlay. The two mobile juggernauts combined to lavish $11.4 million in promotional credits and bonuses to Maryland bettors, representing 85% of the $13.4 million in statewide promotional spend. FanDuel provided $6.3 million in such offers compared to $5.1 million by DraftKings.

FanDuel also accomplished the double of claiming the top spot for revenue and handle, claiming $23.4 million in gross winnings thanks to a 12.2% win rate on $191.3 million handle. It was the 14th time in 16 months that FanDuel had a hold of 12% or better in the Old Line State and its third consecutive month with at least $20 million in gross revenue.

DraftKings was denied back-to-back double-digit holds for the first time since September and October, crafting a 9.8% hold from $137 million worth of wagers and reporting $13.4 million in gross revenue. It was the sixth straight month DraftKings had an eight-figure gross revenue total.

BetMGM had the bulk of the outstanding promotional spend in February, providing $1.2 million worth of bonuses and credits. Its 7.3% hold was its second-lowest in Maryland, ahead of only the 7.2% fashioned in November, as it reaped $2.7 million in revenue from the $37.3 million handle.

Caesars finished within $3,500 of $1 million in revenue as it had a 5.1% hold against $19.4 million worth of bets placed. Fanatics Sportsbook was the sixth and final operator to generate an eight-figure handle at $12.8 million, but its 2.3% win rate meant its haul was only $299,000. After factoring in promotional spend and deductions, Fanatics finished with minus-$311,000 AGR, swelling its deficit to minus-$2.9 million.

Crab Sports had a similar outcome, reporting a minus-$12,400 AGR after posting a sub-3% hold on the $726,000 handle and winning $21,300 in gross revenue.

A tough month for some retail sportsbooks

Maryland’s 13 retail books had widely varying outcomes in February — bettors came out ahead at five venues, while six had holds of 10% or higher. The overall win rate was 3.6% as brick-and-mortar sportsbooks claimed $513,000 in gross revenue from the $14.1 million handle. The adjusted gross revenue, however, was nearly double that at $942,000.

Horseshoe Baltimore and MGM National Harbor both posted their largest monthly losses since going live in December 2021. Bettors walked out with $207,440 more than their $1.2 million handle at Horseshoe, while they came out $196,397 to the good on $4.1 million worth of bets placed at National Harbor.

The Greenmount OTB sportsbook posted its second consecutive monthly loss and third in four months as bettors came out $16,882 ahead on $96,666 wagered. Greenmount has paid out $31,121 above its $279,199 handle to start 2024.

Long Shot’s posted its first monthly loss as bettors won $28,408 on top of the $323,048 wagered in February. Fanatics Sportsbook’s retail sportsbook at FedEx Field had a $2,788 loss from $168,310 handle.

Parlays provide bulk of operator winnings

Operators absorbed the $4.5 million in losses from single-event wagering on NFL action thanks to a strong performance on parlays. The house had a 16.5% hold for February to claim $35.7 million in gross revenue from the $216 million handle. Parlays represented 48.8% of the total handle in Maryland and 82.1% of all gross revenue.

NBA betting was the biggest source of single-event wagering for Old Line State operators with $3.8 million as the house posted a 4.6% hold on $83.7 million in bets placed. College basketball provided $2.2 million, with the win rate there 4.2% on the $53.3 million handle.

Tennis ($1.8 million) and soccer ($1.3 million) were the other sports where operators claimed at least $1 million in winnings, while the catch-all “other” category, which includes boxing and mixed martial arts specific to Maryland, provided $1.4 million in revenue. A few bettors were still cashing winning college football tickets as operators reported a monthly loss of $84,727.