Low tax yields result from a record-setting month for Maryland’s sports wagering.

Despite $160.2 million in bets being handled through the first nine days of online legal sports betting in Maryland, PlayMaryland says the $704,728 yield on tax revenue is due to a higher amount of promotional spending.

According to the analysis, online sports wagering launched on November 23, and $25.9 million in gross sports betting revenues were generated.

Seven online sportsbooks opened on Nov. 23, just in time for placing wagers on NFL Thanksgiving Day games. During the first nine days, little revenue was generated.

According to the analysis, the revenue dropped to $704,728 from $781,642 generated in October when retail betting was the lone option.

PlayMaryland reported the drop in tax revenue amid the grandest betting stage in state history is only a short-term trend. The drop in revenue is attributed to promotional spending as sports books came online and offered sweetheart offers to get more people placing wagers to attract new and more customers.

The cause, according to the analysis, is the fact that gambling corporations operating in Maryland are permitted to deduct promotional spending. That spending is taken off the company’s financials, generating less tax revenue.

    Brent Addleman

    Brent Addleman is an Associate Editor and a veteran journalist with more than 25 years of experience. He has served as editor of newspapers in Pennsylvania and Texas, and has also worked at newspapers...

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