Maine Sports Betting Handle Reaches Record Low in February

Maine sports betting handle continued its downtrend in Feb. 2024 with the state collecting $33.6 million in wagers, down from $38.1 million in January this year. Collections for both months this year have been down from the $44.4 million in betting handle from Dec. 2023, a concerning trend that is indicative of a decreasing appetite for sports betting in the NFL’s offseason months.

There are various factors to consider while analyzing these numbers. Firstly, only two sportsbooks – DraftKings and Caesars Sportsbook – operate in the state of Maine. In terms of adjusted revenue, both operators combined for $4.6 million in total collection of over $33 million. Revenue in February was almost $1 million down from January, where these operators managed $5.5 million in adjusted revenue with a hold of close to 15%.

DraftKings All But Owns Maine

While Caesars Sportsbook is a reliable operator, DraftKings has owned the Maine market. Both operators launched on the same date in Maine (Nov. 3, 2023). Total handle for 2023 was $82 million with gross revenue of $9.2 million, with a hold of 11.3%.

Including February of this year, Maine’s betting handle has surpassed $150 million. Of that, DraftKings has collected more than $125 million in handle while Caesars Sportsbook’s collection has been just $27.6 million. DraftKings has managed to capture more than 75% of Maine’s market share, all while the state’s lawmakers continue to make the push to legalize iGaming in 2024.

How Does Maine Tax Sports Betting Revenue?

Maine’s Gambling Control Unit governs the rate at which operators are taxed in the Pine Tree State. Operators are asked to distribute 10% of adjusted gross sports wagering receipts to the state’s various departments. The official government portal indicates how these receipts are distributed:

• One percent of the adjusted gross sports wagering receipts must be deposited in the General Fund for the administrative expenses of the Gambling Control Unit within the department;
• One percent of the adjusted gross sports wagering receipts must be deposited in the Gambling Addiction Prevention and Treatment Fund established by Title 5, section 20006-B;
• Fifty-five hundredths of 1% of the adjusted gross sports wagering receipts must be paid to the State Harness Racing Commission for distribution as described in section 290, subsection 2;
• Fifty-five hundredths of 1% of the adjusted gross sports wagering receipts must be deposited in the Sire Stakes Fund established in section 281;
• Four-tenths of 1% of the adjusted gross sports wagering receipts must be deposited in the Agricultural Fair Promotion Fund established pursuant to Title 7, section 103; and
• Six and one-half percent of the adjusted gross sports wagering receipts must be deposited in the General Fund.

Maine’s Tax Collection in February

Since sports betting went live in November last year, sportsbook operators have consistently generated a double-digit hold. In January, almost $550,000 of tax money was generated while tax collection came down in February to $425,000.

With the high hold for sportsbook operators – 11.35% in 2023 and 14.6% in January – tax collection has remained high but the decline in handle has been a concern for the state. Based on a calendar month, betting handle has never been lower in Maine, including November last year – not a full month with the launch of sports betting in the first week of November – when it was $37.6 million.

READ MORE:

• Maine Sports Betting Handle Up 18.6% in December
• Maine Lawmakers Look to Legalize iGaming in 2024
• US Sports Betting Revenue Tracker