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NY Clears Another Major Sports Betting Milestone

The latest weekly reports from New York confirm that the state has now reached yet another mobile sports betting milestone. Since the launch of the market in January, Empire State bettors have now wagered US$10 billion online on sporting events. This was confirmed by the weekly report for August 22-28, in which the online handle reached US$194.5 million.

The Empire Stateโ€™s mobile sports betting market officially launched on January 8, 2022, and it functions under a limited operator model with only nine brands available. But despite its limited model of operations, the market has already transformed the state into the capital of online sports betting in the U.S. with even more activity expected going into a full NFL season.

Total Handle of US$10 Billion

This week, the New York State Gaming Commission reported that for the week of August 22 through August 28, 2022, the nine operators collected US$194.5 million. And thus, putting the Empire State slightly above the US$10 billion threshold with a total online wagered volume of US$10.1 billion. The total amount has now brought US$390.9 million in tax revenue.

Since the start of the market, the state has reached at least a billion in wagers in each of its first six months of operations. However, over the summer betting volume across the state dropped off as many leagues were in their off-season. It is expected that volume will once again move up when the NFL starts on September 8, 2022. This will be the first full NFL season after the opening of the market.

In a recent interview, state Senator Joe Addabbo shared that the legislature is quite happy with the market, however, they still plan on making some adjustments to its operator count, tax rate, and even promotional items. He also mentioned that the state has already transformed into one of the top sports betting jurisdictions, but is unsure whether the state will be able to sustain it.

Currently, the Empire Stateโ€™s online sports betting sector operates at the highest tax rate among any other state with 51%. This has been the cause for operators to lose money, and state lawmakers will most likely discuss the matter in next yearโ€™s legislative session. However, if any changes are to be made, they must not affect the tax revenue generated for the state.

New York Assemblyman J. Gary Pretlow has also recently spoken on the mobile sports betting market and its success. The Co-Chair of the New York Assembly Committee on Racing and Gaming said that he is quite pleased with the results, but he also admitted that the tax rate is a concern. He explained that if more operators enter the market the rate could decrease to 37-38%.

iGaming is Also an Option

State legislators have also discussed the possibility of introducing online gambling in the state and a recent study by VIXIO GamblingCompliance suggested it would be quite beneficial to the jurisdiction. According to its report, the Empire State could be bringing around US$428 million every year to the local budget from the legalization of online roulette and other casino-style games.

Source: Mazzeo, Mike โ€œNY Exceeds $10 Billion In Online Sports Betting Handle Since Launchโ€, Legal Sports Report, September 1, 2022