US – New York sports betting surpasses $542m in taxesBy Phil - 11 November 2022
Since early January, when mobile sports wagering became available in New York, the State has collected $542m in taxes through the week ending October 30, far surpassing every other state in the nation.
An additional $200m in licensing fees has also been collected, generating a total of more than $740m in revenue, most of it to be used for education. This far outperforms every other state in the nation, including those that have been accepting mobile sports wagers for several years.
Governor Kathy Hochul said: “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,” Governor Hochul said. “I’m proud of the work that has been done to secure our state’s top position in mobile sports wagering, and I am excited to continue the trend as we secure hundreds of millions of dollars to support programs that will improve the lives of New Yorkers.”
New York State set a record of $73m in mobile sports wagering tax revenue in September, the most generated by any state to date, breaking its own record of $63m set in January. For context, according to reports, the highest monthly mobile sports wagering tax revenue generated outside of New York is Pennsylvania in November 2021 at $19m.
New York State Gaming Commission Chairman Brian O’Dwyer said: “New York continues to lead the nation in sports wagering thanks to Governor Hochul’s enacting of smart gaming policies that deliver real, transformative results for New Yorkers. The revenue generated from sports wagering will provide critical support to our schools, youth sports and responsible gaming programs.”
New York State Office of Addiction Services and Supports Commissioner Chinazo Cunningham said: “OASAS stands ready with services and supports for New Yorkers struggling with problem gambling. This additional revenue from mobile sports wagering will allow OASAS to expand important prevention, treatment, harm reduction and recovery services across the State.”
State Senator Joseph P. Addabbo, Jr. said: “Since New York entered the mobile sports betting market back in January, we have collected over $500m in tax revenue. That is an incredible achievement — especially in only a 10-month timespan with only nine operators — with the majority of this money going towards the state’s educational coffers, gaming addiction programs, as well as youth sports programs. With this great start, I look forward to a greater potential for increasing the benefits of mobile sports betting for the residents of New York with the NFL season in full swing, the NHL and NBA seasons getting underway and the current World Series.”
Assemblymember Gary Pretlow said: “I’m elated with the success of mobile sports betting in New York but not surprised! When Senator 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.”
According to GeoComply, a software firm used by sports books to ensure geolocation requirements, more than 11.3 million unique player accounts have been created since January, conducting nearly 985 million transactions.
Looking at a breakdown of wagers by sport since January 8, 2022, Major League Baseball has taken in $2.6bn and the NBA was not far behind with $2.5bn. For football, the most popular sport in America, the NFL has taken in $1.3bn over 10 regular season weeks and all of the 2022 playoffs. College football has taken in $406m, which includes the 2022 bowl games and the current regular season to date. A final statistic to accentuate the popularity of pro football mobile sports wagering in New York State shows the average number of transactions on Sundays since the start of the 2022 season at 5.7m.
Through the week ending October 30, 2022, the mobile sports wagering handle is $13bn with net revenue to education of $527m. For FY 2023 and annually thereafter, revenues from mobile sports wagering are distributed as follows: $5m to fund sports programs for underserved youths, $6m to fund problem gambling education and treatment, and the remaining majority to education aid.