51% tax gives the state $263M

New York mobile sports betting handle tops $7.1B in first 4 months and a half, with all-time record state revenue

2022-06-01
Reading time 2:06 min

New York mobile sports betting market has seen $7.15 billion in bets in the first four months and a half live since January 8. Only taking number including full April, this new vertical has generated a record-seeting of more than $263 million for the state, which gets 51% tax from sportsbook operators' gross gaming revenue. Sports wagers at the state’s four commercial casinos made up more than $4.3 million. 

With latest data reported by the New York Gaming Commission until May 22, mobile bets amounted to $7,152,493,928, and mobile sports wagering gross gaming revenue (GGR) hit 516.620.353.

Since January, more than 2.7 million unique player accounts have been created and have conducted more than 620 million transactions.

According to an announcement from Governor Kathy Hochul’s office, in the past five months, the state collected more revenue than any other state has in years. Pennsylvania has generated $253 million since November 2018, and New Jersey $229 million since June 2018.

"In less than half a year, New York has become a leader among states in implementing successful gaming policies, with hundreds of millions of dollars going to important programs that will improve the lives of all New Yorkers," Hochul said, as reported by Silive.com.


NY Governor Kathy Hochul

"I am committed to upholding responsible and effective gaming policies that will move the industry forward and continue to drive our state’s economic growth, the governor added.

Mobile sports wagering tax revenue is being reinvested into elementary and secondary education and grants for youth programming. Monies will also be used for problem gambling prevention, treatment, and recovery services. Furthermore, $200 million in license fees from the eight mobile sports wagering platform providers has already been collected and directed towards education.

"These numbers further prove that New York’s gaming industry is robust thanks to the implementation of effective gaming regulation and the actions of responsible sports wagering operators. The results – hundreds of millions of dollars in revenue in less than six months of operation – speak for themselves, said New York State Gaming Commission Executive Director Robert Williams.

Beginning Fiscal Year 2023 and annually thereafter, revenues from mobile sports wagering will be distributed as follows: $5 million in funding for sports programs for underserved youths, $6 million in funding for problem gambling education and treatment, and the remaining majority of the revenue for education aid, the state said.

When full April data was released, FanDuel remained the market leader with $63.6 million in revenue from $599.5 million in handle and a 43% market share, and was followed by DraftKings, which posted $19.6 million in revenue from $327.1 million in wagers. Caesars Sportsbook placed third, at $11.8 million in revenue from a $215.7 million handle. All three posted handle down from March.

BetMGM delivered $5 million in revenue after taking $142.2 million in bets, while Rush Street posted $1.8 million in revenue from $38 million in wagers. PointsBet was sixth, at $1.5 million in revenue and a handle of $53.2 million; while WynnBet saw $518,705 in revenue off $9.4 million in handle, and Resorts World posted $335,808 in revenue from $5.8 million in bets.

 

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