Just six months after its first launch, New York sports betting revenue continues to set records.
Gov. Kathy Hochul announced that New York has brought in $302.3 million in mobile sports wagering tax revenue since sports betting apps launched in January. That’s more than its neighboring states brought in over several years.
Gov. Hochul’s announcement came out on July 8th, exactly six months after the first mobile sportsbooks launched in the state. She also announced the authorization of New York’s final sports betting operator, Bally Bet, as of July 7. New York’s first phase of mobile sports betting is now fully operational.
“In just six months,” Gov. Hochul said, “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.”
How Does New York Compare to Other Sports Betting States?
New York has generated more sports betting revenue than any other state in six months compared to multiple years.
New York State has collected $302.3 million in tax revenue in its first six months of mobile sports betting. By comparison, here are the results from New York’s closest neighboring states with legal online sports betting:
- Pennsylvania: $265.6 million since November 2018.
- New Jersey: $237.1 million since June 2018.
State Senator Joseph P. Addabbo praised New York’s record-breaking launch, saying:
New York State has already exceeded all expectations by outperforming any of our competition in the mobile sports wagering arena in just a short six-month period. That is because we provide the solid New York fanbase with high-quality mobile betting from dedicated providers, who make it a priority to give customers a top-of-the-line experience on their apps. And with Bally Bet now coming online, there will be even more competition in this growing market.
New York Expects Revenue to Keep Growing Year Over Year
According to GeoComply, which confirms users’ geolocations for sportsbooks, more than 2.9 million unique player accounts were created since January, making nearly 707 million transactions.
And lawmakers and sportsbook operators expect the wagers and revenue to continue growing.
“New York State has established itself as the leader in sports wagering in only six months,” New York State Gaming Commission Executive Director Robert Williams said. “The numbers and timeline clearly indicate that New York’s model successfully harnessed the excitement of sports wagering and continues to maximize its potential.”
New York projects the following tax revenue for upcoming fiscal years:
- $357 million in FY 2023
- $465 million in FY 2024
- $493 million in FY 2025
- $509 million in FY 2026
- $518 million in FY 2027
Where Does the Sports Betting Tax Revenue Go?
New York earmarks all sports betting tax revenue to support elementary and secondary education, youth sports programming, and problem gaming prevention, awareness, and treatment programs.
The state also collected $25 million in license fees from each of the eight mobile sportsbooks. The resulting $200 million in revenue will go towards education.
Starting in FY 2023 and beyond, New York will allocate mobile sports wagering tax revenue as follows:
- $5 million for sports programming for underserved youth
- $6 million for problem gambling education and treatment
- The remainder for education aid
“The recent launch of New York’s final sports wagering operator will provide key revenue for education, youth sports programs, and problem gambling support,” Gov. Hochul said. “I look forward to continuing to enact responsible gaming policies that provide exciting entertainment for New Yorkers of legal age – all with important safeguards in place to help those who need it.”
AP Photo/Mary Altaffer