Maine’s newly legalized sports betting market has quickly gained traction since its inception eight months ago, though it’s too early to tell whether it will necessarily be a long-term success. The Paris Olympics have added another layer of complexity to this shifting landscape.
Early returns on sports betting have been impressive:
Maine, in its first foray into sports betting, had impressive results from last November through June 30. Gamblers wagered $319.3 million through the state’s two licensed sportsbooks, and ultimately received $284.7 million in payouts, according to the Department of Public Safety’s Gambling Control Division. Peak betting occurred in March, coinciding with multiple college basketball games, when total bets reached $47.5 million. Despite the high turnover, March’s tax contribution was the lowest of the period, at just $270,000, as gamblers’ higher gains resulted in a smaller share of the tax revenue for the state.
The state generated more than $3.2 million in tax revenue from sports betting from November through June, including $2.3 million in the first half of 2024 alone. Gambling Control Executive Director Milton Champion expressed satisfaction with the results. Initially, the study projected the state's annual revenue from sports betting to be between $3.8 million and $6 million. With current tax revenue pointing to a full first-year total of $4.6 million, Champion remains optimistic, saying: "We're in the middle range. Hopefully we'll get closer to the $6 million projection."
The road to legalized sports betting in Maine has been fraught with obstacles. A 1992 federal law effectively banned sports betting across the country, with only limited exceptions, until a 2018 Supreme Court ruling opened the door to state-level legislation. Initially resisted and vetoed by Governor Janet Mills, the tide turned in 2022 with legislation that not only legalized sports betting but also delegated its online management to the state’s Native tribes. This strategic move included a 10% tax on profits that would significantly benefit Maine’s general fund.
Olympics: Uncertainties in Betting:
As the Paris Olympics get underway, the impact on sports betting in Maine remains uncertain. While Europe is expected to see more than $500 million in Olympic-related bets, the U.S. market is harder to predict. According to a Seton Hall University survey, about 15% of Americans plan to bet on the Olympics — a lower level of participation compared to the Super Bowl. Patriotic fervor and the appeal of a unique sport may boost betting activity, but as Champion cautiously noted, "Will that have a countervailing effect? I'm not sure. That remains to be seen."
Opinions are mixed on the potential boost for Olympics betting. According to Mainebiz, Boston University professor Jay Zagorsky believes that the timing of the event and unfamiliarity with the participating teams may deter gamblers. Historical data from England shows that the Summer Olympics have had a minimal impact on gambling tax revenue. Zagorsky concluded: "Overall, I expect the Olympics to have a huge impact on the hearts and minds of millions of fans, but a modest impact on the bottom line of the gambling industry."
As Maine adapts to these new regulatory environments, the state's gaming industry is poised for exciting developments, influenced by international sporting events and local legislative changes. Both DraftKings and Caesars continue to accept bets, with Team USA enjoying high medal expectations, underscoring the continued appeal and potential of the Maine sports betting market.
