Maryland online sports betting revenue surges 30.5% in March
Maryland’s online sports books held 10.4% in March, resulting in a 30.5% surge in revenue. The books won US$62 million on handle of US$595.2 million, a 3.8% uptick.
Handle and hold were led by FanDuel. It won US$28.4 million on wagering of US$233.6 million. It also held the most tightly, with 12.1%.
DraftKings grossed US$17.3 million on US$183.9 million in handle. It had a hold of 9.4%.
Fanatics Sportsbook placed third with US$4.5 million, on handle of US$50.9 million. BetMGM followed with US$4.1 million in revenue off handle of US$43 million. Fanatics held 8.8% to BetMGM’s 9.6%.
Despite a 9.4% hold, Caesars Sportsbook grossed US$2 million. Its handle share was US$21.7 million. TheScore Bet had revenue of US$1.2 million on US$11.2 million. It was the second-tightest book at 10.6% hold.
All other OSB providers combined for US$4.5 million in win, on aggregate handle of US$51.1 million. They averaged hold of a state-low 8.7%.
David McKee is an award-winning journalist who has three decades of experience covering the gaming industry.
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The Backstory
Why March’s spike matters now
Maryland’s sharp rise in online sports betting revenue in March lands at a pivotal moment for the state’s gaming landscape. The uptick came as operators recalibrated after a winter of heavy promotions and as basketball’s postseason began to firm up hold rates. But beyond seasonal dynamics, the surge offers a fresh data point in an environment where tax policy, regulatory enforcement and market structure are all in flux. Taken together, recent developments in Annapolis and in federal courtrooms suggest the state’s revenue momentum could face both headwinds and structural shifts over the next year.
For operators, higher hold in March signals better pricing discipline after a stretch of customer acquisition costs that compressed margins. For policymakers, it strengthens the case that Maryland’s online sports books are becoming reliable contributors to public coffers. The question is how that revenue gets divided going forward, and whether heightened legal scrutiny of adjacent products, such as event contracts on federally regulated prediction markets, will reshape who can participate in the market at all.
Tax debate in Annapolis raises the stakes
The most immediate variable is taxation. Gov. Wes Moore has proposed doubling the state’s levy on online sports betting revenue to 30% and raising table game taxes to 25%. Analysts warn the plan, while only a proposal, would reverberate across operator balance sheets if enacted. In a detailed note, Deutsche Bank’s Carlo Santarelli and Truist’s Barry Jonas cautioned that the measure could hit cash flow for leaders like FanDuel, DraftKings and MGM National Harbor, with potential spillover for digital gaming stocks and regional casino earnings. Their analysis, summarized in coverage of the proposed Maryland tax hikes, framed the move as a broader test of states’ appetite to extract more from mature online markets rather than expand into new ones like igaming.
The near-term stakes are clear. If the legislature advances the governor’s plan, operators will be forced to weigh pricing, promotions and market share goals against a larger tax bill. Santarelli modeled a multimillion-dollar annual hit for leading platforms, while Jonas flagged the risk that other states could follow Maryland’s lead. Even if the final rate lands below 30%, the debate alone may prompt tighter promotional spend and a push for operational efficiencies, affecting customer offers and possibly handle growth through the rest of the year.
A courtroom test for prediction markets
At the same time, Maryland is drawing a bright line between licensed sportsbooks and federally regulated prediction markets. A federal district judge recently denied a motion from Kalshi, which argued its Commodity Futures Trading Commission approval shielded it from state-level gambling enforcement. The ruling, detailed in a report on Kalshi’s Maryland case, leaves intact the state’s position that offering markets on sports outcomes requires a license from the Maryland Lottery and Gaming Control Commission.
While Kalshi has appealed, the decision underscores a core regulatory principle: federal market authorization does not displace state authority over gambling products. For Maryland’s licensed sportsbooks, that’s a competitive moat. If Kalshi or similar platforms were deemed free to operate sports event markets without a state license, they could siphon trading volume from regulated books, especially among price-sensitive or proposition-focused customers. For now, the court’s stance protects the state’s tax base and the incumbents’ market position, though it also signals that novel market structures will face a high bar in Maryland.
Big money flows into event trading
The enforcement side collides with another reality: capital is pouring into the prediction market space. In recent months, Kalshi’s valuation reportedly jumped to $22 billion following more than $1 billion in new funding led by Coatue Management, highlighting robust investor appetite despite regulatory friction. As noted in reporting on Kalshi’s valuation surge, the company’s backers include prominent venture firms, and its annualized revenue is said to be substantial. Rival Polymarket also drew a major investment, pointing to a broader bet that event contracts can scale into mainstream financial products.
For Maryland, that capital raises the probability of sustained legal and policy challenges as event markets push into categories that look and feel like sports wagering. Even if courts continue to affirm state authority, deeper funding means more resources for litigation, lobbying and product innovation. The result could be a moving boundary between what regulators view as permissible financial instruments versus regulated bets. Licensed sportsbooks may benefit in the interim, but they also face the prospect of new competitors vying for consumer attention at the edges of the market.
Global signals on regulation and growth
Maryland’s choices are playing out against a global backdrop that shows how regulatory pivots can shape online revenue trajectories. In the Philippines, online casino results climbed in the third quarter even as the regulator ordered e-wallets to be de-linked from gambling platforms. The shift, meant to bolster safeguards, slowed activity late in the quarter but did not derail year-over-year growth. As Inside Asian Gaming reported, Philippine online gaming revenue rose 17.4% to PHP41.95 billion, with online casinos accounting for 44% of the overall gambling market.
The regulator, PAGCOR, also posted stronger fiscal performance, emphasizing governance and responsible gaming as drivers. PAGCOR’s nine-month net income jumped 49% while revenue rose 5.8%, and contributions to nation-building increased. The Philippine example is not a template for U.S. policy, but it illustrates how targeted controls can coexist with sector growth when enforcement is clear and the regulatory bargain is understood by operators and consumers. For Maryland, a similar balance is at stake: calibrating tax rates and compliance regimes without stifling legitimate demand or pushing bettors to unregulated alternatives.
What to watch next
The path from March’s revenue pop to a durable run rate will depend on three levers. First, the legislative outcome on taxes will dictate how aggressively operators chase share versus margin in the coming quarters. Second, the appellate track in the Kalshi case will signal whether states can maintain hard boundaries around licensed sports betting as event markets keep expanding. Third, macro conditions — from major sports calendars to consumer discretionary trends — will shape handle even as promotions ebb.
If lawmakers opt for higher taxes, expect tighter promotional intensity and a greater emphasis on same-game parlays and other higher-hold products to protect unit economics. If courts continue to back state authority over sports outcomes, Maryland’s licensed books retain a clearer playing field, at least near term. And if consumer engagement holds through the summer and into football season, March’s higher hold could prove less an outlier and more a sign that the market’s promotional burn is easing into a more sustainable phase.
