Sportsbook operators continue to make the public pay the price. According to the report released by the Maryland Lottery and Gaming, the bookmakers combined to bring in a monthly handle of $441.5 million in January.
The Public Continues to Struggle Against the House
Since brick-and-mortar sportsbooks launched in December 2021, the Old Line State finally crossed the $1 billion handle mark. The next billion should come to fruition a lot sooner as the market finally implemented the online sports wagering market on Thanksgiving weekend.
With the final results in, the sportsbooks brought in $59.6 million in gross revenue for the month. January 2023’s handle dropped approximately 11.2 percent from last month’s total of $497.1 million.
Promotional wagers have played a huge role since the market added the mobile aspect to its arsenal.
Promotional wagers contributed $21.8 million to the total, representing a significant decline of almost $50 million. The significance was anticipated as operators spent the promotional credits to recruit customers for the new business venture.
Regardless of the decline, the bookmakers continue to take advantage of the public’s struggles against the house. For the seventh consecutive month, operators combined to post an average hold rate of 13 percent with a win rate of 13.5 in January.
For the month, the adjusted gross revenue was $14.1 million. Thanks to another solid outcome, the state collected $2.1 million in tax receipts for the month.
Can Any Competitor Take Down FanDuel or DraftKings?
According to the numbers, four out of the seven bookmakers registered a double-digit win rate for the month. It’s been a common theme, as FanDuel, DraftKings, and BetMGM were the three platforms to achieve that benchmark once again. On the flip side, Barstool also reached the target.
FanDuel registered a total handle of $208.9 million and generated $33.7 million in gross revenue due to a hold rate of 16.1 percent. DraftKings secured the second spot by accumulating $131.9 million in wagers. With a win rate of 11.8 percent, the company claimed $15.6 million in gross revenue.
BetMGM’s handle wasn’t as impressive as its two competitors, as it only accepted $40.7 million in bets, but boasted a 13 percent win rate. Barstool only accepted $12.6 in wagers but showcased a hold rate of 11.4 percent.
After reducing its promotional spend by half a million dollars, PointsBet turned a profit after incurring modest losses of just over $65,000 during the first two months of the online launch. Caesars and BetRivers had a win rate of 6.8 percent, which is below the national average of 7.2 percent.
Retail Casinos Post a Modest Hold Rate
When brick-and-mortar sports betting was the only option available in the state, these facilities posted double-digit hold rates very frequently. This month, the casinos combined to generate an average hold rate of 8.3 percent.
Live! Casino had its lowest win rate in history, limited to just 2.6 percent, as the location retained less than $160,000 from its $6.1 million handle. The retail aspect of the business struggled for the most part, but one location continued its double-digit win rate streak to seven months.MGM National Harbor posted a hold rate of 12.4 percent. By accepting $7.3 million in bets, the location claimed $906,000 in revenue.
