Lottery profits and casino contributions smash records
Maryland Lottery and Gaming shattered records on all fronts in Fiscal Year 2022, generating an all-time high of $1.511 billion in contributions to support the state’s good causes.
The new record for contributions to the state, which includes funds from the Lottery, casino gaming, sports wagering and fantasy competitions (daily fantasy sports), beat the prior mark set last year by $120 million. Maryland’s fiscal year runs from July 1 through June 30.
The Lottery and the casinos each contributed more than ever before to the state, with Lottery profits totaling $673.7 million and casino contributions of $832.3 million. The combined figure of $1.506 billion from the Lottery and casinos surpassed the $1.391 billion generated in FY21. Meanwhile, the launch of sports wagering and revenue from fantasy competitions added another $5.6 million to that already record-breaking sum.
“We are immensely proud to be a vital source of funding for programs and services that Marylanders depend on every day,” said Maryland Lottery and Gaming Director John Martin. “We’re in the entertainment business, but we never lose sight of the role we play and our place in the community.”
Maryland Lottery and Gaming is Maryland’s fourth-largest source of revenue after income, sales and corporate taxes.
Profits from the sale of Lottery tickets go to the Maryland General Fund, which supplies budgets for many state programs, including schools, public health and safety services and environmental programs. Casino gaming revenue supports education; the communities and jurisdictions where the casinos are located; Maryland’s horse racing industry; and small, minority- and women-owned businesses. The casinos also contribute funds that enable the state to offer cost-free problem gambling treatment and services. Sports wagering and fantasy competition contributions are directed to education programs.
“As we continue to generate revenue each year, we remain vigilant about the importance of encouraging people to play responsibly,” Martin said. “While we were setting revenue records and helping to oversee the launch of sports wagering this past year, we also achieved Level 4 responsible gaming certification by the World Lottery Association.”
Only nine other U.S. states have achieved WLA Level 4 certification, the highest level of compliance with a regimen of best practices designed to ensure that lotteries operate responsibly.
The Lottery’s $673.7 million FY22 profit to the state surpassed the previous record set last year by $6.3 million. Sales totaled $2.663 billion, an increase of $51.5 million compared to the prior record set in FY21.
Sales of scratch-off tickets have fueled the Lottery’s growth in recent years, with FY22 marking an eighth-consecutive record-setting performance. Scratch-off sales topped the $1 billion mark for the first time, finishing at $1.009 billion, an increase of $16.1 million from the previous record set in FY21.
The Lottery launched its first new draw game in six years when Pick 5 made its debut in February 2022. Pick 5 sales substantially outpaced those of 5 Card Cash, which was retired to make room for Pick 5 in the Lottery’s daily game lineup.
Annually, more than 60% of the Lottery’s sales total is returned to players in prize money. Record sales in FY22 saw a corresponding record in prizes to players, which totaled $1.695 billion, an increase of $37.5 million from the prior record set last year.
Maryland Lottery retailers saw record-setting sales and cashing commissions, which increased to $203 million in FY22, up $5.8 million from the prior record set in FY21.
Maryland’s six casinos set new records for total gaming revenue and contributions to the state, including a record-setting contribution to the Education Trust Fund (ETF).
The $832.3 million contribution to the state reflects an increase of $108.9 million compared to last year’s record-setting total. The ETF contribution was all-time record of $611.6 million, an increase of $68.9 million compared to the previous record set in FY19. Total gaming revenue at the casinos was $2.002 billion, up $242 million from the previous record set in FY19.
Sports Wagering and Fantasy Competitions
Maryland’s first five retail sportsbooks opened in December 2021. The Blueprint for Maryland’s Future Fund, which supports public schools, received a total of $3 million from the $174.8 million in wagers that were placed in FY22. Additional retail sportsbooks and online sportsbooks are expected to open during FY23. It is estimated that when the sports wagering program is fully built out, it will contribute roughly $30 million per year to education funding.
Fantasy competition operators (including daily fantasy sports operators), began contributing a portion of their revenues to the Blueprint for Maryland’s Future Fund in May 2021. For FY2022, online fantasy competitions contributed $2.6 million to the state.
About Maryland Lottery and Gaming
Maryland Lottery and Gaming operates the Maryland Lottery and is responsible for regulatory oversight of the state’s casinos and sports wagering program. Monthly reports on Lottery, casino and sports wagering revenues are available at mdgaming.com. For information about Lottery games and promotions, visit mdlottery.com. Maryland Lottery and Gaming reminds players to please play responsibly and within their budget. Information on free counseling and other resources is available by calling 1-800-GAMBLER or visiting mdgamblinghelp.org.