New York Sports Betting Tops $25 Billion Faster Than Any State

When New York sports betting launched in in January of 2022, many experts predicted big numbers for a state eager to place legal bets. The reality has been even more successful.

In June, after only 16 full months of sports betting, New York topped the $25 billion mark in total handle, setting a record for the fastest to reach that mark.

More on NY sports betting’s $25 billion milestone

Total handle represents all wages accepted from every legal sportsbooks, both online and retail. Previously, New Jersey held the record for reaching that number, taking about 47 months. The only other state to accept as much as $25 billion in sports bets is Nevada, which has had retail sportsbooks for decades.

New York sports betting is clearly the most popular market in North America, and that feverish activity is reaping benefits for the state. Entering June 2023, the state had collected a staggering $983.5 million in taxes from sports betting. That’s because New York taxes online sports betting operators at 51% on adjusted gross gaming revenue, the highest rate in the United States.

At the rate New York is going, it should eventually surpass neighboring New Jersey in historic total handle. New Jersey has reported just over $38 billion in total bets accepted, and it launched online sportsbooks well ahead of New York, in 2018.

DraftKings NY, FanDuel NY jostle for top position

In a little over a year of online sports betting in the Empire State, the market leaders are familiar names: FanDuel NY and DraftKings NY. The two combine for nearly 75% of the market share in New York, with FanDuel on top, as of our latest cumulative figures through April of 2023. In 2022, FanDuel reported $6.6 billion in total handle, and DraftKings had $4.6 billion.

Once expenses are removed, sports betting operators in New York have generated approximately $2 billion in revenue since online sports betting launched in early January. The tax revenue from that figure goes to the state’s education program funding, the general fund, and for a statewide responsible gaming program.

DraftKings and FanDuel alone have paid more than $800 million in taxes to New York. Nationwide, those two operators are typically the top dogs in the competitive sports betting market. That competition could get more fierce soon, as Fanatics is planning to join the fray. Earlier this year, Fanatics purchased PointsBet, securing some market share and, potentially, access to its New York license.

New York residents could see even more opportunity for gaming in 2023 if the state legislature and governor approve NY online casinos. Only seven states have legal online casinos, but given the phenomenal success of online sportsbooks, New York may not be able to resist legalizing mobile casino apps. With such products, consumers can play online slots, roulette, and even online poker.

About the Author

Dan Holmes

Dan Holmes is a writer for NY Sports Day. He has also written three books about sports. He previously worked for the National Baseball Hall of Fame and Major League Baseball. He enjoys writing, running, and lemon bars. He lives near Lake Michigan with his daughters and usually has an orange cream soda nearby.

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