New York Sets Tax Revenue Record with $2 Billion from Mobile Sports Betting

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New York Jets fans react during the NFL Draft. David Eulitt/Getty Images/AFP

Records were made to be broken, and when it comes to sports betting in New York, the state keeps toppling each one. The New York State Gaming Commission reported $45.5 million in mobile sports betting revenue for the week ending May 26. 

This boosted the Empire State’s all-time tax revenue to a little more than $2 billion. Since its launch in January 2022, mobile sports betting in New York has become the highest-grossing market in the United States. 

The state’s nine licensed operators — including Bally Bet, BetMGM, BetRivers, Caesars Sportsbook, DraftKings, Fanatics, FanDuel, Resorts World Bet and WynnBET — collectively earned $23.2 million in positive revenue during the last week of May. 

Big Tax Rate Means Big Bucks for State Coffer

It’s hard to believe that mobile sports betting didn’t even launch in New York until January 2022. Over slightly more than two years, the state has risen to become the highest-grossing market for sports betting in the United States. 

And it’s no secret how the state set the all-time tax revenue number in such a short time. 

This achievement is partly due to New York’s unique tax structure. With a 51% tax rate imposed on its nine digital operators, the state stands out as having the highest tax rate in the country. Consequently, New York is the only state to have generated over $600 million in state taxes during the post-PASPA era.

Sports Betting Apps Going Strong in New York 

Mobile sports betting first launched in New York in January 2022. After more than two years, the state has become the highest-grossing market in the United States.

Wagers via sports betting apps contributed to a hold of nearly 12% against a total handle of almost $390 million. Impressively, eight out of the nine operators in New York achieved a win rate of at least 9%.

Duopoly Still Going Strong

DraftKings achieved remarkable success in May, setting the state’s all-time record for weekly revenue at an impressive $36.5 million on May 12. Just two weeks later, they surpassed the $20 million mark for the eighth time in 125 weeks of operation. This achievement was fueled by a 13.1% hold on $155.7 million worth of wagers, resulting in $20.5 million in winnings. Notably, three of DraftKings’ eight instances of surpassing $20 million in weekly revenue occurred within the last six weeks.

FanDuel, DraftKings’ eternal rival, found itself in an unusual position, trailing behind DraftKings in both handle and revenue. However, FanDuel still performed well, collecting nearly $16 million in revenue from $149.3 million in handle. Their win rate of 10.6% marked the third consecutive week in double figures.

Caesars secured a strong third position in both categories, maintaining a hold just over 10%. This strategy resulted in $3.3 million in winnings from a little more than $33 million in wagers. This was the first time since February 25 that Caesars achieved a double-digit hold, and it marked the ninth instance this year where their weekly revenue exceeded $3 million.

And with the impending addition of downstate casinos, and other plans in the works, there’s no telling where these numbers could reach.