March Madness fuels Maine sports betting to best monthly handle yet, but state revenue dips

March proved to be a busy month for sports betting in Maine, with revenue numbers from the Gambling Control Unit in the Department of Public Safety revealing an increase in wagering, driven by the NCAA basketball tournaments.

The total handle for DraftKings and Caesars, the state’s two sportsbooks, surged from approximately $33.7 million in February to $47.6 million in March, marking a 41% increase. This spike set a new record for wagering activity in Maine since its legalization in November.

However, despite the surge in betting activity, Maine's revenue saw a decline. The record-setting handle generated roughly $2.7 million in adjusted gross receipts, resulting in a haul of $270,606.66 for the state. This marks a decrease from the $425,602.12 generated in February and $546,149.15 in January.

Steven Silver, chair of the state’s Gambling Control Board, commented on the shift in fortunes, stating: “Mainers finally figured out how to win. Had March not happened, I’d say Maine would have been one of the worst in the country at winning sports bets. But maybe we’ve turned the corner.”

The hold, which represents the percentage of the total amount wagered that the sportsbooks retain in adjusted gross receipts, saw a decline in March, dropping to 5.7% from the previous four months' average of 12.2%. This decrease in hold contributed to the lower revenue for the state.

Silver highlighted the impact of strong performances from favorites in the NCAA basketball tournament, particularly the UConn men and South Carolina women, on bettors' success. He noted that favorites winning are typically not favorable for sportsbooks, as it makes it easier for bettors to hit on their wagers.

March’s handle surpassed previous months, including December's roughly $44.5 million handle, making it the highest total to date. John Holden, an Oklahoma State University professor stated: “March Madness is probably the biggest gambling event of the year.”

“Certainly, the Super Bowl as an individual event is bigger, but there’s really nothing that compares to March Madness," he told Portland Press Herald. "It is a gambling juggernaut. Arguably, the gambling around March Madness is probably one of the reasons that we have legalized gambling today. It became so accepted. We had the president doing March Madness brackets.”

Despite the decline in revenue for March, Silver is optimistic about meeting revenue projections. He noted: “Looking at over five full months, we’re still averaging over $400,000 a month in taxes. We’re still right in that $5 million to $6 million annual range. I think that could certainly happen.”

Looking ahead, Holden noted that the summer months typically see a slowdown in sports betting activity, as major sports like football and basketball are not in season. Additionally, he suggested that the upcoming summer Olympics in Paris may not attract significant interest from bettors.

"These are not big-number months. If expectations have been set realistically, then people are expecting this. Regular season baseball in July doesn’t typically attract a lot of interest," he said.