New York Generates More Than $500M in Sports Betting Taxes in Nine Months
Posted on: November 10, 2022, 01:28h.
Last updated on: November 10, 2022, 01:28h.
New York hit a major milestone with its legal online sports betting market last month as the state surpassed $500 million in tax revenue in less than 10 months of activity.
According to data from the New York State Gaming Commission, the nine licensed operators in the state have amassed $1.06 billion in gross gaming revenue (GGR) from Jan. 8 to Oct. 30. Because of the 51% tax on those revenues, the state’s share of that is $541.4 million.
Most of that funding has gone to education, with $5 million funding sports programs for underserved youth and $6 million to cover problem gaming education and treatment.
By bringing sports wagering to New York, we have not only opened the door to responsible entertainment for millions of sports fans, but we have also brought in significant revenue to support schools, as well as youth sports, while implementing important safeguards to help those who need it,” Gov. Kathy Hochul said in a statement.
New York is the most populous state among those that have legalized online sports betting, and its tax rate is among the highest in the nation. That combination allowed it to skyrocket past other states that have had legalized sports betting for years in terms of generating revenue.
New York By The Numbers
New York got off to a strong start as bettors wagered $2 billion online in the first month after it launched. It still remains hot as the Gaming Commission reports a $13 billion handle through October.
Hochul’s office issued a release Thursday breaking down the New York online sports betting numbers.
Since Jan. 8, more than 11.3 million unique player accounts have been created, according to data compiled by GeoComply. Those accounts have been tracked for about 985 geolocation transactions to confirm those individuals are placing wagers within the state.
Since the start of the 2022 NFL season in September, New York bettors have averaged 5.7 million geolocation transactions every Sunday.
New York officials said the MLB season generated $2.6 billion in wagers. The NBA has attracted $2.5 billion in wagers. The first half of the 2022 NFL season and the games played in January and February have a handle of $1.3 billion. Meanwhile, action on college football has totaled $406 million.
State Assemblymember Gary Pretlow, D-Mount Vernon and the chair of the Assembly Committee on Racing and Wagering, said he was very pleased but not surprised by the results.
“When Senator (Joe) Addabbo and I proposed the bill to legalize mobile sports wagering in New York, we knew the fans had an appetite for wagering because they were going across the river to bet in New Jersey. We have a robust sports market in New York with multiple teams in each major sports league (NFL, NBA, NHL, & MLB). Our success was inevitable – that’s why we wanted to incorporate as many entities and affiliates as possible. This endeavor has been a win/win for New Yorkers as we have generated millions in revenue for education and youth sports while not turning a blind eye to responsible gaming programs.”
November Starts Strong
The Gaming Commission on Thursday reported the handle for the week ending Nov. 6 was $353.3 million. Sportsbooks reported GGR of $39.1 million.
According to Gaming Commission data, the GGR amount is the fourth-highest weekly total.
Since the start of the fiscal year in April, sportsbooks have taken $8.6 billion in wagers and earned $786.3 million in revenue.
With five months left in the fiscal year, the state has already generated $401 million in taxes for the state. That surpasses the $357 million state officials projected for the entire fiscal year.
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Source: casino.org
