The first full month of legal online sports betting in Maine saw solid wins for the state’s two licensees. That was far more the case for one of those licensees than the other, however.
Overall, Maine’s sportsbooks fared well in December 2023 in comparison to a similar launch in another state. That beginning sets them up for a respectable, if not profitable, first few months in Maine.
Maine sportsbooks win over $4.6 million in first full month
According to the Maine Gambling Control Unit, bettors in the state gambled over $44.4 million between Caesars Sportsbook and DraftKings Sportsbook during the 31 days of December 2023. December was the first full month for the two operators in Maine as they went live on Nov. 3, 2023.
Of that $44.4 million in bets, Caesars and DraftKings combined to win about 10.4% of the money or around $4.6 million. After taking the deduction that Maine allows for a 0.25% federal tax on their win, that translated to around $4.3 million in taxable revenue.
Maine collected $437,884.18 in taxes from that revenue.
While Caesars and DraftKings as a combo had a stellar first full month in Maine, DraftKings did most of the heavy lifting there. DraftKings accounted for almost 81% of the dollars gambled in Maine during December and over 91% of the gross win from that month.
Going back to a broad overview of how Maine’s legal sports betting system performed in its first month, a neighboring state with a similar framework is a good point of reference.
Maine on par with New Hampshire’s first December
Maine’s population is very similar in number to neighboring New Hampshire’s, making New Hampshire a good comparison when it comes to revenue for legal online sports betting. Legal online sports betting began in New Hampshire long before it did in Maine, however, going back to the middle of December 2019.
During the first full December (2020) of legal online betting in New Hampshire, bettors wagered over $51.6 million on DraftKings. In New Hampshire, DraftKings is the only legal online sports betting option.
That month, DraftKings won about 8.8% of the money bet in New Hampshire, resulting in around $4.5 million in gross revenue. Thus, Maine’s $44.4 million in bets and $4.6 million in gross win are quite comparable.
The biggest difference between Maine and New Hampshire’s system other than DraftKings’ monopoly is the tax structure. In exchange for that sole license, the New Hampshire Lottery takes 51% of the gross win from sports betting in the state while DraftKings keeps the remainder. In Maine, the state levies a 10% privilege tax on adjusted revenues for both licensees.
For that reason, New Hampshire collected over four times the amount of revenue from its online sports betting activity in December 2020 than Maine did in December 2023. Outside of that comparison, Maine’s legal sports betting industry seems to be off to a good start.
With the NFL playoffs looming this month and Super Bowl Sunday ahead in February, it’s a timely launch for Caesars and DraftKings in Maine. If December’s numbers are any indication, they should do quite well.