Since its inception eight months ago, Maine’s newly legalized sports gambling market has quickly gained traction, although it’s still too soon to declare its long-term success guaranteed. The ongoing Olympic Games in Paris add another layer of complexity to this evolving market landscape.

Impressive early returns from sports betting:

Maine’s initial foray into sports betting, spanning from November through June 30, has yielded remarkable figures. According to the Department of Public Safety’s Gambling Control Unit, bettors have wagered a substantial $319.3 million through the state’s two authorized sportsbooks, resulting in $284.7 million in payouts. The peak betting period occurred in March, coinciding with numerous college basketball games, totaling a whopping $47.5 million in bets. Despite this high turnover, March saw the smallest tax contribution of the period at $270,000, as bettors turned out more successful, leaving the state with a reduced share.

The state has accrued over $3.2 million in tax revenue from sports betting from November to June, with $2.3 million of that total collected in the first half of 2024 alone. Milton Champion, the executive director of the Gambling Control Unit, expressed satisfaction with these results. Initially, studies had projected annual state revenues from sports betting to be between $3.8 million and $6 million. With current tax collections pointing towards a $4.6 million total for the first full year, Champion remains optimistic, stating, “We’re in the middle range. Hopefully, we can get a little closer to the $6 million projection.”

Maine’s path to legal sports betting was fraught with hurdles. A 1992 federal law had effectively prohibited sports gambling across the United States, with limited exceptions until the Supreme Court’s 2018 decision opened the door for state-level legislation. Initially met with resistance and vetoes from Gov. Janet Mills, the tide turned in 2022 with legislation that not only legalized sports betting but also entrusted its online management to the state’s indigenous tribes. This strategic move included a 10% tax on profits, significantly benefiting Maine’s General Fund.

The Olympic Games: a wild card for betting:

With the Paris Olympics now in session, the impact on Maine’s sports betting remains uncertain. While Europe anticipates over $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 engagement level compared to the Super Bowl. The appeal of patriotic fervor and unique sports could enhance betting activity, but as Champion cautiously notes, “Will it be an offset? I’m not sure. That remains to be seen.”

Opinions on the potential boost from Olympic betting are mixed. As Mainebiz reports, Jay Zagorsky, a professor from Boston University, argues that the timing of the events and unfamiliarity with the teams might deter bettors. Historical data from England suggests minimal impact on gambling tax receipts during the Summer Olympics. Zagorsky sums it up: “In general, I expect the Olympics to make a big impact on the hearts and minds of millions of fans, but have little impact on the gambling industry’s bottom line.”

As Maine navigates these new regulatory waters, the state’s betting scene is poised for exciting developments, influenced by international sporting events and local legislative adjustments. Both DraftKings and Caesars continue to accept bets, with Team USA favored heavily in medal counts, underscoring the ongoing intrigue and potential of Maine’s sports betting market.