iGaming Weekly Recap (January 13–19, 2025): Maryland Eyes a Tax Hike on Sports Betting

A $5 million fine was imposed on Intralot for fraudulent actions related to a sports betting contract in Washington, D.C. Intralot, along with a subcontractor, misled the District of Columbia Council to secure a $215 million contract. The failed GambetDC app has since been replaced by FanDuel, making Washington’s sports betting market more competitive with the entry of new operators such as DraftKings, BetMGM, Caesars, and Fanatics. Intralot’s fraudulent activities have resulted in significant financial consequences and a loss of market position.

New York’s sports betting market finished 2024 strong, recording an impressive $2.28 billion handle in December—the second-highest monthly total in state history. However, despite the record handle, gross revenue dipped due to player-friendly outcomes. FanDuel maintained its market lead, followed by DraftKings, Fanatics, BetMGM, and Caesars Sportsbook. Smaller operators also experienced growth, reinforcing New York’s position as a leader in the U.S. sports betting industry.

ESPN BET, the sportsbook platform by PENN Entertainment, has launched operations in Washington, D.C., through a partnership with Monumental Sports & Entertainment (MSE). The deal includes branding opportunities for ESPN BET at MSE venues and media channels but does not extend to retail betting. This is part of ESPN BET’s broader strategy, which, despite ambitious goals, has so far captured only a small share of the U.S. market. PENN Entertainment is working to accelerate ESPN BET’s growth by integrating the platform with ESPN accounts and expanding its offerings through the Hollywood Casino app.

British bookmaker Betfred is pulling back from the U.S. market, shutting down its operations in Nevada and leaving Pennsylvania as its only remaining state of presence. The decision comes in response to financial losses, totaling $91.7 million in 2023, and the difficulty of competing with well-established operators in the highly competitive U.S. market.

Maryland is considering doubling its sports betting tax rate from 15% to 30% in an effort to address the state’s budget shortfall. While the proposal has sparked debate, it aligns with trends in other states and is projected to generate an additional $95.4 million in 2026. Similar tax hikes have been implemented in states like Ohio, which increased its rate to 20%, and Illinois, which introduced a progressive tax system for sports betting operators.

Bonus: CFTC Addresses the Elephant in the Room – Sports Event Contracts Under Scrutiny

Crypto.com’s move to launch sports event contracts has caught the eye of the Commodity Futures Trading Commission (CFTC), which is now digging into whether these activities cross the line into illegal gambling.

After years of debates over daily fantasy sports (DFS) and sweepstakes, a new focus has emerged for regulators. With November elections and the growing success of platforms like Polymarket and Kalshi, more companies are seeing an opportunity in sports event contracts.

Last year, Kalshi managed to win a legal battle with the CFTC, gaining approval to offer political event betting. However, the CFTC isn’t stepping back just yet, especially as more companies look to take advantage of this regulatory gray area.

Robinhood was one of the first to express interest in sports event markets, but Crypto.com has taken it a step further, calling itself “the first sports outcome market regulated in all 50 U.S. states.”

Just like the past year saw heated discussions about sweepstakes and social casinos, it seems event contracts are next in the spotlight. If history repeats itself, this could be the beginning of a long saga, with no clear end anytime soon.