In first year of NY mobile sports betting, more than $16 billion was wagered.
ALBANY — It’s been a year since New York first allowed mobile sports betting, and the results have exceeded expectations.
Bettors amassed more than $16 billion since the practice was first authorized on January 8, 2022.
This has resulted in more than $709.2 million in taxes, which exceeds early estimates that mobile sports betting would bring in about $500 million.
The money came despite early predictions that a 50 percent minimum tax would hamper sports betting in New York. Other states charge lower tax rates for firms seeking betting licenses.
The taxes were a point of contention between former Gov. Andrew Cuomo, who pushed the plan to allow sports betting, and some lawmakers and operators who said the tax rate would be a hindrance.
In addition to tax revenue, the state has received more than $200 million in licensing fees from nine online sportsbooks in the state, including DraftKings and Fanduel, as well as Caesars, BetRivers and ResortsWorld.
The last two are associated with brick-and-mortar casinos and video lottery centers, respectively.
Gov. Kathy Hochul on Friday boasted about New York’s strong showing in the sports betting arena. With a population of more than 19 million and numerous popular teams such as the Yankees, Mets, Giants, Jets, Bills, Knicks, Nets, Islanders and Rangers, the state has quickly become one of the nation’s leading centers for mobile sports betting.
“In just one year, New York has become a national leader in providing responsible entertainment to millions, bringing in record revenues,” Hochul said in a prepared statement. “I look forward to another year of delivering top-notch mobile sports betting experiences that generate revenue to enrich the lives of New Yorkers across the state.”
The governor’s office noted that GeoComply, a software firm used by sportsbooks to provide geolocation requirements, noted that more than 3.8 million unique player accounts have been created since inception in January 2022, making over 1.2 billion transactions.
Heading into the current legislative session, the financial success of mobile sports betting has sparked discussions about possible expansion.
Legal Sports Report, an industry paper, recently noted that there has been talk of allowing sportsbook betting on events such as the MVP and Heisman Trophy awards, as well as placing betting kiosks in sports stadiums.
However, it remains unclear whether lawmakers on the legislature’s gaming committees will pursue such options as the state is also seeking this year to issue three new casino licenses in the New York City area.
[email protected] 518 454 5758 @RickKarlinTU