If you aren’t convinced that New York sports betting has been the real deal for the past five months, data released by the governor’s office on Tuesday confirms it has been a winning proposition for bettors and the state.
Gov. Kathy Hochul (D) announced that the Empire State’s launch of mobile sports betting on Jan. 8 has paid off with record-breaking tax revenue in less than six months, topping all states that have implemented legalized sports betting, many of which have been in operation for several years.
Since its launch in early January, the state has generated more than $267 million in taxes. All of it comes from mobile, except for the $4.3 million brought in by retail on-site sports wagering at New York’s four commercial casinos since July 2019. Mobile accounts for 98.4% of that $267 million.
The release noted the New York figures exceeds the $253 million generated by Pennsylvania since November 2018 and the $229 million by New Jersey since 2018.
The New York tax rate of 51% is much higher than both Pennsylvania and New Jersey.
The state’s tax revenue from sports wagering has been reinvested in elementary and secondary public education, youth sports programming grants and prevention treatment and recovery for problem gambling, according to a news release.
“In less than half a year, New York has become a leader among states in implementing successful gaming policies, with hundreds of millions of dollars going to important programs that will improve the lives of all New Yorkers,” Hochul said in the release. “I am committed to upholding responsible and effective gaming policies that will move the industry forward and continue to drive our state's economic growth.”
Operator License Fees Have Met $200 Million So Far
The state also has collected $25 million in license fees from each of the eight mobile sports wagering platform providers that have launched.
On Jan. 8, Caesars Sportsbook New York, DraftKings Sportsbook New York, FanDuel Sportsbook New York and Bet Rivers Sportsbook New York were live from the start.
BetMGM Sportsbook New York got in on Jan. 17 and PointsBet Sportsbook New York, WynnBet Sportsbook New York and Resorts World Sportsbook New York followed in ensuing weeks.
The remaining licensed operator, BallyBet Sportsbook New York, has yet to launch.
The $25 million license fee has added $200 million to the state, which already has been directed toward the education sector.
“New Yorkers have proven that we were ready for sports betting, including its mobile component,” said state Sen. Joseph P. Addabbo, Jr. (D), chairman of the state Senate’s Racing, Gaming and Wagering Committee. “And we are no longer the broken-down, wobbly-wheeled car in the right lane watching other states pass us by, but are now the shiny, revved-up sports car in the left lane passing everyone else by. The fact that we have already surpassed all other states in revenue in less than six months is a testament to the quality of the dedicated work to provide a credible product for the residents of New York.
“This record amount of tax revenue is already being invested in our schools, our youth sports programs and New York's problem gaming services. I look forward to an even brighter future for sports betting, working towards realizing even more funding and jobs for our state through gaming.”
Numbers on Users and Funds Disbursement
The state has had more than 2.7 million unique player accounts created with more than 620 million transactions posted since launch, according to Vancouver-based GeoComply, a software firm used by global and national sportsbooks to ensure geolocation requirements are met.
For fiscal year 2023 and annually thereafter, mobile revenues will be distributed as follows:
“Back in March, I was quoted as saying, ‘We are well on the way to being the sports betting capital of the world,’“ said state Assemblyman Gary Pretlow, who is also the Committee Chairman on Racing and Wagering. “Mobile sports betting is an economic engine for New York. I am ecstatic with the revenue that has been generated for education, youth sports and problem gambling.”
Weekly Reports Show Huge Numbers Add Up
On Friday, the New York State Gaming Commission (NYSGC) will publish its next weekly figures report for mobile wagering providers. Last week’s report showed the lowest weekly handle for sports betting ($261.15 million) but noted that since Jan. 8 the state has had a handle of $7.15 billion with Gross Gaming Revenue (GGR) of $516.62 million.
FanDuel New York is the overwhelming leader among operators, with $2.76 billion in cumulative sports betting handle and $226.25 million in GGR.
That accounts for 38.6% of the total handle.