Thursday marks one year since the launch of legal sports betting apps in Maryland. 

While the state’s mobile betting market took a long time to launch — voters approved sports wagering in 2020 — it’s now up and running, and the state’s regulator is pleased with the financial results.

“The revenue contribution, we originally had estimates of $25-30 million, and we hit that last year in our fiscal year,” Maryland Lottery Director John Martin said. “Looking at fiscal [2024], which will end in June, we might be looking at a significant bump from that. Maybe something in the low 40s in terms of tax contribution. I’m proud of that development, that growth.”

Parlay wagering, like it has across other states, has proved particularly lucrative for sportsbooks in the state. Martin says he likes to believe the majority of the state’s tax revenue stems from players following responsible gambling best practices. 

“My hope is we’re able to see sustainable, consistent revenue growth but in a responsible manner,” Martin said. 

There are currently 13 retail sportsbooks and 12 mobile operators in Maryland, including major national operators like BetMGM, Caesars Sportsbook, DraftKings, Fanatics Sportsbook, and FanDuel. ESPN BET also recently went live in Maryland. 

Don’t expect significant operator growth in the state in the coming years. While there are up to 60 mobile licenses available under Maryland law, there may not even be 20 mobile operators in Maryland in a mature market.

“The potential to have 60 mobile licenses when you couldn’t even name 25 entrants in the marketplace was a little optimistic,” Martin said.

Mobile betting nationally is dominated by DraftKings and FanDuel, with a few other companies like BetMGM and Caesars Sportsbook garnering substantial market share. New entrants ESPN BET and Fanatics Sportsbook are both hopeful they can compete with industry giants in the long term. 

Outside of the large operators, it’s tough to compete. 

“From results and looking at other jurisdictions, the market is dominated by the top four or five entrants,” Martin said. “The sustainability of a 25-sportsbook Maryland marketplace is probably something that will have to be considered in the next several years.”

Maryland’s sports wagering legislation was designed to include smaller, diverse businesses in the market. Martin thinks it’ll take a few years to properly assess the industry’s diversity, but there are a few smaller players in the state’s retail and mobile marketing, including mobile operator Crab Sports. 

There could be a couple of mobile entrants over the next year or so, but Martin doesn’t anticipate major changes to the Maryland sports betting market in 2024. 

The next major development for Maryland gambling is the potential legalization of online casino games. A report on the feasibility of iGaming legalization in Maryland was shared with the state’s General Assembly last week. 

It’s expected that the legislature will seriously discuss online casino legalization in 2024. 

“We stand by waiting for their next step and how they choose to proceed or not,” Martin said.