Maryland Sportsbooks Might Soon Extend Fewer Promotions, as State Seeks Regulatory Change

In recent years, Maryland sportsbooks have seen a significant surge in popularity due to the legalization of online sports betting. The state gaming regulator has proposed reducing how much promotional funds mobile sportsbooks can deduct from their tax obligations.

Currently, licensed online sportsbooks can deduct 100% of the promotional money given to bettors from their tax obligations in their first year in business. However, this allowance declines to 20% after the license’s first full fiscal year in operation.

The proposed regulatory change aims to further reduce how much promo money mobile sportsbooks can deduct, with a suggested cap of 5% in year two moving forward.

Maryland is currently home to 15 active online sportsbook platforms, including market dominators FanDuel and DraftKings. The state gaming regulator wants to increase the state’s benefit from legal online sports gambling by reducing how much promotional money can be deducted from tax obligations.

Industry critics argue that the state failed to properly regulate the gaming industry when it authorized online sports gambling in 2021. They claim that licensed online sportsbooks use misleading promotions and sophisticated analytics to attract new users, often targeting those who suffer from a gambling disorder.

The City of Baltimore is currently suing FanDuel and DraftKings on allegations of deceptive and unfair business practices.

To give you an idea of how much money Maryland sportsbooks are making, here are some key statistics:

* In 2024, the state directed over $60 million in sports wagering taxes to the Blueprint for Maryland’s Future Fund, a program that supports public education.

* The total number of active online sportsbook platforms in Maryland is 15, with notable operators including FanDuel and DraftKings.

* The average revenue generated by each mobile sportsbook licensee is around $20 million per year.

In conclusion, the proposed regulatory change could have significant implications for the Maryland sports betting industry. If enacted, it would further reduce how much promotional money can be deducted from tax obligations, increasing the state’s benefit from legal online sports gambling.

Key Takeaways

* The state gaming regulator has proposed reducing how much promotional funds mobile sportsbooks can deduct from their tax obligations.

* The suggested cap for promo money deduction is 5% in year two moving forward.

* Maryland is home to 15 active online sportsbook platforms, with notable operators including FanDuel and DraftKings.

Industry Shakedown

Maryland is home to one of the richest sports betting industries, with a small yet affluent population cherishing its Baltimore professional sports teams. The state has directed over $60 million in sports wagering taxes to the Blueprint for Maryland’s Future Fund, a program that supports public education.

Lawmakers are seeking to increase their share of the pie by further reducing how much promotional money can be deducted from tax obligations.

The proposed regulatory change would further increase the state’s benefit from legal online sports gambling.

Sportsbook Lawsuit

Some critics argue that Maryland failed to properly regulate the gaming industry when it authorized online sports gambling in 2021. They claim that licensed online sportsbooks use misleading promotions and sophisticated analytics to attract new users, often targeting those who suffer from a gambling disorder.