Sports betting is not a highly profitable endeavor for Live! Casino & Hotel Maryland, but it is very important for customer engagement, according to Cordish Gaming Group CEO Joe Weinberg, who says that engagement will only grow now that online sports betting is live in Maryland.
Barstool, BetMGM, BetRivers, Caesars, DraftKings, FanDuel and PointsBet online sportsbooks became available for those 21 and over in the state of Maryland on Nov. 23. Live! Casino & Hotel, which is owned and operated by The Cordish Companies, has had in-person sports betting since December 2021. Weinberg says it has been a productive addition for FanDuel-affiliated Live! Casino & Hotel. The retail sportsbook has drawn new customers to partake in casino games, order food and drinks and attend concerts. Online sports betting should continue to help in that regard, according to Weinberg.
“What we’re all about is creating the best live experiences for our customers,” Weinberg said on Facebook Live with PressBox’s Stan “The Fan” Charles Nov. 16. “Even though a customers may want to place their transaction of the bet online versus in the physical retail book, that customer is more engaged with the actual sporting event.”
“Many will even bet on their mobile device within our casinos because that way they don’t have to go up to a kiosk, go up to a window,” Weinberg added. “Particularly as there’s more and more in-game play in sports betting, having the ability to bet from the mobile device is very critical in being able to participate in that kind of real-time gaming activity within a game.”
Online sports betting has been a long time coming in the Old Line State. Maryland voters passed a sports wagering referendum as part of the November 2020 election, leaving the details to state legislators. Maryland’s House of Delegates and state Senate passed a comprehensive sports wagering bill in April 2021 that was signed into law the following month. Retail sportsbooks were introduced late in 2021, then online sportsbooks late in 2022.
Fifteen percent of sportsbook profits go to the Blueprint for Maryland’s Future Fund to improve public education in the state, but that’s expected to be a relatively small slice of what Maryland will bring in on an annual basis through gaming-related revenue.
Maryland Lottery and Gaming raised $1.5 billion for the Maryland General Fund in the last fiscal year (July 1, 2021, to June 30, 2022), according to Maryland Lottery and Gaming director John Martin, who estimates that between $25 million to $30 million will be raised for the Blueprint for Maryland’s Future Fund in the next year with online sports wagering blooming in the market.
“That’s a big difference,” Martin said on Facebook Live with Charles Nov. 17. “That doesn’t mean it’s not important, but just day in and day out, people like Live! Casino and the Maryland Lottery, we’ve got a lot of products in our mix.”
Weinberg pointed out that sports wagering is not a huge source of revenue for casinos, either. BetMaryland.com sports betting analyst Bill Ordine explained that there are a couple of reasons why sports wagering is more of an amenity than a steady way to make money for casinos.
“The amount of money that sportsbooks are able to keep out of a given straight-up wager is pretty slim,” Ordine said. “Traditionally, the house hold on sports wagering has been 5 percent. That’s quite low compared to other types of gambling.
“And there’s always going to be the problem of event velocity. Sports wagering is a fairly slower-paced way of gambling as opposed to, say, a slot machine where you gamble every two or three seconds or faster depending on how fast you can hit the button.”
So if it’s not a huge source of tax revenue for the state, why was it so important to legalize it? Weinberg explained that the illegal sports wagering business was not good for bettors because there was no oversight or regulation available.
“People want to have the right to legally bet on their favorite sports teams and events, so it’s more about providing the service to the citizens here in Maryland and across the country, eliminating the illegal betting market, and it’s less about the revenue that it generates from a tax standpoint,” Weinberg said.
Marylanders had an opportunity to bet on their favorite teams and events on their mobile device and computer the day before Thanksgiving. The seven online sportsbooks available to Marylanders from the start offered attractive sign-up bonuses and promotions for new users. For example, FanDuel gave Marylanders the opportunity to win up to $100 by betting up to $100 on at least one point being scored in Cowboys-Giants on Thanksgiving — essentially a sure thing, considering the last scoreless NFL tie occurred in 1943.
Marylanders can bet on any number of things related to professional or college sports via online sportsbooks within state lines — point spreads, over-under totals, moneyline odds, in-game wagers, prop bets, parlays and so forth. It has changed and will continue to change the way fans watch sports, according to Ordine.
“If someone is an avid sports gambling enthusiast, now they have other interests in the game. They’re not just rooting for the home team,” Ordine said. “Now they’re rooting for their own financial self-interest.”
As fun as betting on sports can be, there are potential pitfalls — addiction and significant financial losses. Martin says bettors should set a budget and stick to it, and he encourages anyone struggling to call 1-800-GAMBLER. The same goes for anyone who has identified a friend or family member experiencing difficulties.
“It’s any addictive behavior — it may not be the individual themselves, but when you look at the impact it has on spouses, families, that number is there for them as well,” Martin said. “We encourage if you know someone, if you’re a family member observing it, please call that number 1-800-GAMBLER and get the resources you need for the family.”
Photo Credit: Courtesy of Live! Casino & Hotel Maryland