New York Gov. Kathy Hochul announced Tuesday that the state has raked in a record-breaking $267 million in NY sports betting tax revenue. That’s more than any other state has collected in years of offering sports betting. And in New York, it’s only been five months.
“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,” Gov. Hochul said.
State Senator Joseph Addabbo, the Chair of the Senate Racing, Gaming and Wagering Committee, added to Gov. Hochul’s statement:
“New Yorkers have proven that we were ready for sports betting, including its mobile component, 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.”
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How New York Compares to Other States
New York’s neighbors with legal mobile sports betting are New Jersey and Pennsylvania — two of the largest sports betting markets in the country.
Here’s how their tax revenue numbers compare to New York’s $267 million:
- Pennsylvania: Pennsylvania has generated $253 million in tax revenue since launching mobile sports betting in November 2018.
- New Jersey: New Jersey follows just behind with $229 million in tax revenue since June 2018. New Jersey has a lower tax rate than both New York and Pennsylvania.
New York is already the biggest sports betting market in the US, with over 2.7 million unique player accounts registered in the state since the January launch. More than 1 million of those came in the first 10 days of the statewide launch.
Those users have generated more than 620 million transactions for over $6.22 billion in total handle and $4.24 million in gross gaming revenue.
“These numbers further prove that New York’s gaming industry is robust thanks to the implementation of effective gaming regulation and the actions of responsible sports wagering operators,” New York State Gaming Commission Executive Director Robert Williams said. “The results — hundreds of millions of dollars in revenue in less than six months of operation — speak for themselves.”
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Where Does NY Sports Betting Tax Revenue Go?
New York raised eyebrows with its 51% tax rate on mobile sports betting, but the bet has paid off in dividends. The state collected an additional $200 million in licensing fees from the eight mobile sports betting platforms.
The tax revenue goes primarily to education and programs for problem gaming prevention, treatment, and recovery services.
In the FY2023 budget, state lawmakers allotted $5 million to fund sports programming for “underserved youths,” $6 million for problem gambling education and treatment, and the rest for elementary and secondary education.
“This record amount of tax revenue is already being invested in our schools, our youth sports programs, and New York’s problem gaming services,” Sen. Addabbo said. “I look forward to an even brighter future for sports betting, working towards realizing even more funding and jobs for our state through gaming.”
AP Photo/Adam Hunger
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