In a detailed monthly report, it has been revealed that player spending and revenue in the domain of sports betting exhibited substantial growth in May across several U.S. states, including Iowa, Maryland, and Tennessee. Notably, the figures show an impressive year-on-year rise in both player expenditure and state revenue, despite some fluctuations when compared to April.
Focusing first on Maryland, the data indicates that sports betting activities garnered $431.5 million (£338.9m/€400.7m) in May, marking a 34.8% increase compared to the same period last year. However, this figure is 11.3% lower than the $486.3 million recorded in April. Breaking down the total spending, a significant portion of $419.5 million was wagered through online platforms, whereas retail facilities contributed an additional $12.0 million.
The revenue generated from these bets, after accounting for prizes, promotional wagers, and other adjustments, amounted to $46.6 million. This monthly revenue reflects a 50.3% increase compared to May of the previous year and a 22.6% improvement over April’s figures, despite the lower total wagering amount. Interestingly, a major share of this revenue, specifically $45.7 million, originated from online betting activities, with retail outlets contributing a more modest $875,290.
In May, Maryland succeeded in collecting $7.0 million in taxes from sports betting. Online betting accounted for a substantial $6.9 million of this tax revenue, while retail betting was responsible for $131,294. Maryland maintains a flat tax rate of 15.0% on sports betting activities. For the year to date, the total amount wagered on sports in Maryland stands at an impressive $4.46 billion, reflecting an 89.2% increase year-on-year. On the revenue front, this translates to $363.9 million, a substantial 143.4% increase.
Shifting the focus to Iowa, the total handle for sports betting in May was reported at $182.5 million. This figure represents a 23.6% increase from $147.7 million in May of the previous year but is 12.9% lower than the amount recorded in April.
. Of the total handle, $169.5 million was spent on online sports betting, while retail sportsbooks accounted for an additional $13.0 million.
Revenue from sports betting in Iowa for May reached $16.7 million. This marginally eclipses both the $16.6 million reported for the same month last year and the $16.5 million recorded in April 2024. Revenue generated from online betting accounted for $14.9 million, with retail locations contributing $1.8 million.
The leading market players in Iowa, FanDuel and Diamond Jo Dubuque, generated $5.0 million in revenue from $44.6 million in total bets during May. They were followed by DraftKings and Wild Rose Jefferson, which secured second place with $2.4 million in revenue from a $29.9 million handle. Another DraftKings partner, Wild Rose Clinton, stood third, generating $2.2 million from $23.2 million in bets.
Finally, in Tennessee, the gross mobile handle for May reached $381.8 million. This represents a 36.2% increase from $279.8 million in the same month the previous year, albeit a slight decline from the $384.2 million recorded in April. After making $2.6 million in necessary adjustments, the gross handle in Tennessee stood at $379.2 million, which is 0.5% lower than April. Unfortunately, Tennessee no longer reports monthly revenue figures for this data point.
In May of the previous year, the adjusted gross revenue recorded for the month amounted to $35.7 million. Tax revenue from sports betting, referred to as the privilege tax, for May was $7.0 million, which is slightly lower by 1.4% year-on-year and remained steady when compared to April’s total.
In summary, the sports betting sector in Iowa, Maryland, and Tennessee continues to demonstrate robust growth, driven by increasing player spending and burgeoning state revenues. Although the reported figures show minor declines in comparison to April, the year-on-year trends reveal a dynamic and expanding market, reflecting the growing popularity and acceptance of sports betting activities. With Maryland and Iowa showcasing strong online betting performances and Tennessee maintaining impressive gross handles, the future of sports betting in these states appears exceedingly promising.
