Here are the latest New York online sports betting revenue amounts as we go through September 2022. How do we expect the online sports betting market to unfold over the first legal calendar year? We’ll 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 the largest online sports betting market in the US. Right before the turn to August 2022, over $9 billion in online sportsbook wagers had been placed by New Yorkers. Activity has lowered a little as we continue through the summer season, which is normal. Weekly handle numbers have fallen below the $200 million mark consistently.
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.
Overall Mobile Sports Betting Revenue Totals for New York
|Estimates through September 18|
|Total NY Betting Handle||$10,980,247,650|
|Total NY Betting Revenue||$866,665,446|
|Total State Tax Revenue||$441,999,377|
Over the first few weeks of the football season, we’re seeing an expected increase in NY sports betting handle. From week-to-week, there was a slight dip from $330 million (week ending on Sep. 11) to $297 million (week ending on Sep. 18). All three of the major sportsbooks (FanDuel, DraftKings, and Caesars) all saw a decrease in activity. PointsBet had the biggest overall increase from $4.8 million to nearly $5.7 million.
Turning the calendar month to September, New York state tax revenue has now surpassed the $400 million mark. Now that this has been achieved before the NFL season, we believe NY state tax revenue will reach around $600 million.
In addition to football, both of New York’s professional baseball teams will be active this postseason. The Empire State will also be betting at the beginning of the NHL and NBA seasons for the first time.
When grossing all sports betting platforms, FanDuel nearly has a $1.6 billion lead in total handle compared to DraftKings and Caesars. The Flutter Entertainment brand accounts for around 40% of the market share in NY online sports betting. FanDuel surpassed over $400 million in revenue alone in the middle of September.
As usual, FanDuel, DraftKings, and Caesars round out the dominant three players in the market. BetMGM remains a distant fourth in handle and revenue. While those bigger operators have hit over $1 billion in handle a lot earlier this year, BetMGM should finally cross that mark by the end of September.
In terms of smaller operators, BetRivers has been on pace to jump over PointsBet in both handle and revenue. Considering PointsBet has lost its advertising power during Sunday Night Football on NBC, we expect BetRivers to be the fifth-largest operator at some point in the NY market.
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 hitting fall, usually the time of year when 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. Legislators have mentioned this, but nothing concrete has taken form yet.
New York 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.
2022 Online Sports Betting Handle
|Sportsbook||May 2022||June 2022||July 2022||August 2022|
|Resorts World Bet||$6,703,211||$6,802,356||$4,703,834||$4,454,179|
We expected lower numbers for New York as betting options shrink in the summer, and that is what we saw. For the first time since launch, the total betting handle for the month of July was below $1 billion. We saw a little bounce back with a total just below $900 million in August.
Most operators saw an increase in their total handle. Draftkings’ handle increased from $213.4 million to $244.5 million, one of the biggest increases in August. PointsBet saw an increase from $16.4 million $23.8 million, whereas Caesars dropped from $118.2 million to $117.6 million.
Bally Bet made its debut in July and finished the month with its total handle at $640,397, the total handle for August was $1,015,982. This is New York’s final online sports betting operator launching under the current law. We do expect either some changes in licensure over time or at least an increase in the number of operators in the Empire State.
2022 Online Sports Betting Revenue
|Sportsbook||May 2022||June 2022||July 2022||August 2022|
|Resorts World Bet||$236,096||$32,669||$262,309||$352,785|
|State Tax Revenue||$55,992,311||$36,934,641||$37,393,827||$50,797,119|
Overall revenue increased by over $25 million from July to August. New York continues to exceed all sports betting revenue expectations, already making more than $350 million from sports betting taxes.
Most operators saw a jump in revenue, with FanDuel still leading the way seeing $46.5 million in revenue in August. DraftKings’ monthly revenue saw an increase of ten million in August.
Resorts World Bet saw monthly revenues return back to normal after a rough June. Bally Bet’s monthly revenues more than doubled, with the sportsbook seeing $97,502 in August.
With the success of the New York Mets and New York Yankees and the start of football season, we should continue to see a jump in sports betting activity.
New York Online 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 on a weekly basis. 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.