Maine’s sports betting industry experienced an increase in the total amount of wagers in May but due to the online sportsbooks’ lower win rate, revenues took a slight decrease.
More Volume Less Revenue
According to the Maine Gambling Control Unit, the state experienced a 4.2% month-over-month uptick in wagers to $39.9 million but due to a lower handle than in April, revenue declined from $4.1 million in April to $3.3 million in May.
Only two mobile sports betting providers operate in the Pine Tree State but DraftKings is the clear favorite over Caesars. According to May’s financial report, DraftKings handled 83% of the sports wagers. Of the $39.9 million in bets in May, Boston-based DraftKings reported a handle of $33.1 million while Caesars generated $6.8 million.
DraftKings not only generated more action but its hold of 9.2% was higher than the 7.5%-win rate reported by Caesars. Therefore, it is no surprise that DraftKings’ $2.9 million in adjusted gross revenues (AGR) towered above Caesars’ $427,718 in AGR. The state collected $331,279 in taxes for the month with DraftKings paying the lion’s share.
As for the first five months of the year, DraftKings reigned supreme, accepting $164.2 million in total wagers while Caesars generated $33.5 million over the same duration. Adjusted gross revenues for the first five months totaled $19.9 million with DraftKings earning $17.8 million, while Caesars made only $2.1 million.
Olympics Could Bring Big Summer Numbers
Tourism is big in Maine during the summer months but not all tourists are sports bettors. However, the 2024 Paris Olympics could woo more customers towards taking a vested interest in the events, which means those tourists who normally don’t bet may add to the sports betting numbers.
This will be the first summer that Maine will be offering mobile sports betting and the executive director for the Maine Gambling Control Unit, Milt Champion, is curious as to how the sports betting industry will fare in the dog days of summer with the Olympics providing a boost.
“You may see some good numbers this year,” Champion said. “And you may see less numbers yet next year. But if that’s the case, I’ll surely have the idea that it was probably a little bit less because there’s no Olympic events in the summer of 2025.”
Although the total amount of bets increased in May, the revenue decreased from the month before. But that was due to the sharper take by the betting public, which will happen from time to time according to Champion. “They just had a lot more winners in May versus April,” said Champion. “And those things happen.”
However, an influx of tourism betting spurred by the Olympic Games will help the state meet its tax revenue goal of $6 million by the end of 2024. And despite the imbalance of power between DraftKings and Caesars, the executive director has been impressed with both sports betting platform providers.
“In all avenues of oversight, the operators have been very cooperative, and just great to work with,” he said.
A prerequisite of operating in the state demands that the mobile sportsbook align itself with one or more of the Native American tribes in the state. DraftKings has partnered with the Passamaquoddy tribe while Las Vegas-based Caesars calls the Penobscot Nation, Maliseets, and Mi’kmaq its sports betting partners.
