Here are the latest New York online sports betting revenue amounts as we go through April 2023. How do we expect the online sports betting market to maintain its progress after the first legal calendar year? We’ll continue to look at all of that here with weekly updates on the latest NY sports betting revenue information.
It only took one month, and New York already had one of the largest online sports betting markets in the US. Right before the turn to 2023, the state saw the sports betting handle total over $16 billion. Activity is expected to continue to thrive, with over $406 million in wagers placed on college football and over $1.3 billion on the NFL since the legalization of NY online sports betting.
Sportsbooks operating in the state have received more betting tickets and gathered more revenue than any other legal state since the beginning. That holds especially true for state tax revenue, which is a whopping 51% for NY. It’s much higher than what used to be the record in Pennsylvania at a 36% tax rate. The good news? The state is looking to decrease the tax rate in the near future.
Overall NY Online Sports Betting Revenue Totals
|Estimates through March 19|
|Total NY Betting Handle||$20,020,879,027|
|Total NY Betting Revenue||$1,628,599,649|
|Total State Tax Revenue||$830,585,821|
2023 started off with New Yorkers wagering more than $400 million in each of the first four weeks of January.
For the week ending February 19, the post-Super Bowl blues hit the sportsbooks in New York. The end of football season meant less wagering as the nine online sportsbooks in New York took in a little over $339 million in sports bets, down from over $424 million in the previous week.
Thanks to March Madness, the New York sports betting handle was back up to almost $460 million for the week ending March 19. The highest since the week of the Super Bowl.
The same three sportsbooks remain on top: FanDuel, DraftKings, and Caesars. FanDuel, continues to have the lead, accounting for around 40% of the market share in NY online sports betting. The sportsbook had another successful week, reporting $188.3 million in mobile bets and $19.5 million in revenue. DraftKings reported $154.1 million in handle and $12.5 million in revenue. Caesars Sportsbook took in $63.1 million in bets and $2.8 million in revenue.
Governor Kathy Hochul announced the state collected more than $700 million in taxes from New York sports betting in 2022. That is well over the $249 million estimation set by the state government.
Could a New York State Tax Break Be Coming for Online Sports Betting?
We’ll be looking closely at the sustainability of the sports betting industry in New York. State tax revenue exceeded the government’s expectations, passing the goal of $249 million in tax revenue for 2022 before the end of May. While that’s good for the state, operators can’t keep offering bonuses and promotions at the level we’ve seen in other locations.
BetMGM has recently nixed its welcome promotion and bonus offers for residents in the Empire State. This is likely due to the high tax rate in place. WynnBET will also be pulling back considerably on its welcome bonus. Many operators aren’t expecting lots of short-term revenue due to the gigantic state tax rate.
Sports betting activity is still relatively strong, and now we are in the fall season when the sports betting handle hits its peak. Considering how quickly New York reached their first-year projection, it will be interesting to see if there’s a tax cut in the near future. State Sen. Joseph P. Addabbo Jr., introduced a bill on Jan. 17, 2023 to lower the tax rate on sports betting.
NY Sports Betting Revenue By Month
New York mobile sports revenue is released by the New York State Gaming Commission (NYSGC). They have a “Weekly Financial Report” and “Monthly Financial Report” for all nine sports gaming operators. In addition, there is a statewide report that combines totals of all nine sportsbooks. These reports are available in PDF and Excel format.
For the Weekly Financial Report, New York State adds up the betting handle and gross gaming revenue (GGR) from Monday through Sunday. Dates are listed for that Sunday when the week is completed.
On Monthly Financial Reports, mobile betting handle and gross gaming revenue are given out on a monthly basis. Net revenue will also be shown that is taken by the state and given to the gaming operator. Other information includes unclaimed funds and other adjustments.
The Empire State taxes gross gaming revenue for mobile sports betting at 51%. All futures bets are taxed in current revenue. Those payouts are taken out whenever they are redeemed.
Monthly Online Sports Betting Handle
|Sportsbook||November 2022||December 2022||January 2023||February 2023|
|Resorts World Bet||$5,396,713||$5,507,348||$5,389,164||$5,356,051|
The first month of 2023 set new sports betting records in New York. January 2023’s sports betting handle surpassed New York’s sports betting handle from January 2022, jumping from $1.67 billion to $1.79 billion. New York’s sports betting handle totaled $1.47 billion in February, declining 18 percent from January’s handle.
FanDuel once again was ahead of all other sportsbooks, making up more than 40 percent of the overall sports betting volume in New York and bringing in $591 million in wagers. DraftKings sportsbook remained the runner-up with $491.3 million in handle. Caesars Sportsbook and BetMGM Sportsbook rounded out the top third and fourth spots.
It is worth noting that BetRivers and PointsBet both cleared $1 million in revenue.
Monthly Online Sports Betting Revenue
|Sportsbook||November 2022||December 2022||January 2023||February 2023|
|Resorts World Bet||$100,021||$2,600,011||$202,984||$484,445|
|State Tax Revenue||$75,593,134||$72,302,591||$76,207,973||$55,223,789|
The state of New York also set a GGR record, breaking the previous record from November 2022. January 2023’s revenue is up 20.4 percent from a year ago and up 5.4 percent from December 2022. New York’s sports betting revenue for February 2023 was around 27 percent lower than January’s. As for taxes, around $55.3 million in tax receipts were collected by the state for the month of February.
In the first year of legalized sports betting in New York, the state earned more than $1.2 billion in GGR, resulting in more than $650 million in state tax revenue.
2022 Mobile Sports Betting Handle
New York Sports Betting has been around for one year. In that year, the state has seen a sports betting handle of over $16 billion. As of now, only nine sportsbooks are operating in New York. But a new bill proposed by State Sen. Joseph P. Addabbo Jr., could increase the number of online sportsbooks to 16 by the end of 2025.
2022 mobile betting handle from each online sportsbook:
|Sportsbook||2022 Total Estimated Handle|
|Resorts World Bet||$56,847,306|
NY Sports Betting Revenue FAQs
Sports betting handle refers to the amount of money that bettors have placed with their sportsbook(s). The amount listed is the total amount these operators have received prior to deductions from bettor winnings and promotions.
For mobile sports betting, the New York State Gaming Commission set the tax rate to 51% on gross gaming revenue.
According to the New York Daily News, NYS Senator Joseph Addabbo, Jr. said that tax money would fund education and youth sports. Expect some of that money to also help various industries and problem gambling campaigns.
The New York State Gaming Commission (NYSGC) releases its mobile sports wagering reports on a weekly and monthly basis. They have sections for each of the nine sportsbooks and a statewide report for all operators.
Gaming operators are making a good amount from online sports betting in the state, but there are many factors to consider. They need to halve their revenue and pay that to the state. There are also a number of different costs that must be considered, such as advertising, technical features, and more.
We’ll know more when companies release financial reports, but it wouldn’t be surprising to see gaming operators run with short-term losses in New York. They believe the online gambling market in the state will grow to the point where they rake in long-term profits.
FanDuel Sportsbook is the platform most chosen by New York online sports bettors. It has roughly a 45% market share that continues to increase every week. No other sports betting app sees steady activity like FanDuel, where the weekly handle has fluctuated between $90 million and $150 million since late March. It has never seen a weekly betting handle below nine digits since opening weekend.
Right now, established New York regulations allow for nine total sports betting platforms to operate. However, new legislation could be coming in that adds more licenses over the next few years while decreasing the state tax revenue percentage. More operators coming in would mean lower taxes for companies, and better promotions available for new and current bettors.