In November, New York State’s sports betting revenue hit a record $148 million. This is the third consecutive month that NY sports betting revenue has set a record in returns from online sports betting.
November’s total sports wagering handle exceeded $1.5 billion, while gross gaming revenue (GGR) reached a total of $148.2 million. That translates to over $75 million in state tax revenue, which lawmakers have currently allocated to education.
September, October, and November each broke records in gross gaming revenue. September reached $143,332,889, only to be broken in October with a GGR of $145,654,719. November’s GGR then outpaced October’s by 1.7%.
While the sports wagering handle (the total amount wagered on mobile sports betting) peaked in January at $1.67 billion, November’s $1.5 billion handle was the highest we’ve seen since March, when it hit $1.64 billion.
Which Sportsbooks are Leading in NY Sports Betting?
FanDuel Sportsbook continues to be the highest earner in New York, with a total of $78.3 million in revenue from $646.2 million in total wagers.
Here’s how the top four shook out in November:
- FanDuel NY: $646.2 million handle; $78.3 million revenue
- DraftKings NY: $498.7 million handle; $42.3 million revenue
- Caesars Sportsbook NY: $200.3 million handle; $14.9 million revenue
- BetMGM NY: $111.4 million handle, $8 million revenue
Recent Concerns about NY Sports Betting Promos and Regulation
With the explosive growth of sports betting in New York and around the US, sportsbooks and lawmakers have faced criticism over failures to safely regulate the expanding industry. An investigation by the New York Times assessed that states have given gambling companies “free rein.”
In New York, State Senator Peter Harckham introduced a bill to enhance regulations in the state. He says the bill is necessary to curb “predator” promos run by sportsbooks licensed in New York. Sportsbooks run these marketing promos in most states.
Senate Bill S9605, which is currently sitting with the Senate Rules Committee, calls for the New York State Gaming Commission “to promulgate rules and regulations regarding predatory sportsbook bonuses in mobile sports betting, including but not limited to, deposit matching, risk-free betting, free money, free bets, site credits, and profit boosts.”
Other legislation intended to increase regulations on gambling is stalled. Gov. Kathy Hochul vetoed a bill that would have established a Problem Gaming Commission. Hochul supports the idea of such a commission but vetoed it on financial grounds. In fact, after winning her election in November, Hochul vetoed several such commissions, citing their combined price tag.
State lawmakers understand the vetoes as a signal that Hochul wants the state budget changed to accommodate the commissions. Hochul also encouraged state agencies to “incorporate the goals” of the vetoed legislation wherever possible.
Senator Joseph P. Addabbo Jr. told NY Sports Day’s Heather Fletcher that he wants to discuss S9605 with Senator Harckham and work together to improve the law and make sure it is implemented correctly.
How Much is Going to Prevention and Treatment of Problem Gambling?
New York has the highest tax rate on sports gambling of any state — set at 51%. In 2022, lawmakers have allocated all sports betting tax revenue for early childhood and elementary education. In FY2023 and beyond, a much smaller percentage of NY sports betting revenue will fund “sports programs for underserved youths” and problem gambling prevention and treatment.
As of November 2022, state tax revenue exceeded $620 million. For FY 2023, only $6 million is allocated for problem gambling programs — less than 1%. According to the NY Times, across the US last year, states set aside $94 million for problem gambling programs, which is just 0.3% of what’s allocated for substance abuse.
AP Photo/John Minchillo