The first year of legal mobile sports wagering in New York saw gamblers wager around $16 billion, earning Albany $709 million in taxes.
The revenue will be used to fund sports programs for kids in need, gambling addiction treatment, and education. An estimated 3.8 million unique players made over 1.2 billion bets with nine mobile sportsbook operators in the state.
Officials expressed excitement for the first year’s success and promised New Yorkers that the best mobile sports betting product will be provided for many years to come. The official one-year anniversary of New York online sports betting was Jan. 8.
Upon the first anniversary of mobile sports wagering in New York, Governor Kathy Hochul said in a statement on Wednesday that taxes collected from sports betting lead the nation.
“In just one year, New York has become a national leader in providing responsible entertainment for millions while bringing in record-shattering revenue for education, youth sports, and problem gambling prevention,” Hochul said.
An additional $200 million in licensing fees has also been collected, generating a total of more than $909 million in revenue, most of it to be used for education.
Looking at the overall tax rate by state, New York has an unusually high 51% tax rate on online sports betting. By comparison, New Jersey’s tax rate is 14.25%.
For Fiscal Year 2023 (April 1, 2022, through March 31, 2023), revenues from mobile sports wagering are distributed as follows: $5 million to fund sports programs for underserved youths, $6 million to fund problem gambling education and treatment, with the remaining majority to fund education aid.
New York State Gaming Commission Chairman Brian O’Dwyer thanked Governor Hochul for her leadership and the enactment of smart and responsible gaming policies followed in the state.
“New York continues to break revenue and wagering records,” O’Dwyer said. “As we enter the second year of mobile sports wagering in New York, the gaming commission will continue to ensure that such betting is conducted in a safe and responsible manner.”
The Office of Addiction Services and Supports is also pleased with the public education and resources available.
“The additional revenue generated will help to ensure that we have a robust system of programs and services to address the needs of individuals, families, and communities across the state,” said Chinazo Cunningham, commissioner of the New York State Office of Addiction Services and Supports.
State Senator Joseph Addabbo, Jr. applauded the “remarkable” first year of sports betting in the state.
“I’m grateful to have joined others in the state, putting forth a product that New Yorkers deserved and I appreciate the significant benefits to our economy,” Addabbo said. “I look forward with a vision of optimism that New Yorkers can expect their state to continue to provide the best mobile sports betting product, in this highly competitive arena, for many years to come.”
Online Casino Legalization Next for New York?
Over 30 U.S. states, and the District of Columbia, have legalized some form of sports betting since 2018. At least 18 states, including Washington D.C., have legalized mobile online sports betting. States without mobile betting may have retail sportsbooks at a casino or other public venues where residents can place bets in person.
Addabbo is advocating for iGaming (or New York online casinos) to be the next step for the state. In jurisdictions with both online sports betting and online casinos, iGaming returns can vastly exceed sports betting revenues.
With only six jurisdictions (New Jersey, Michigan, Pennsylvania, Connecticut, West Virginia, and Delaware) currently offering iGaming, several other states, like New York, Illinois, and Indiana, may seek to introduce legislative regulation this year for online gambling. Nevada allows online poker only.