After the relatively quiet summer months, it seems that mobile sports betting is now back in New York State in full swing. The latest reports from the New York State Gaming Commission that in October, online sportsbooks reported over US$145 million in gross gaming revenue for the state. This is now the largest registered monthly GGR since its launch.
The Empire State started to accept online sports bets on January 8, 2022, as four sportsbooks debuted in the sector. Since then, the rest five have also made their way into the market and are now fully operational. Although it runs under a limited model, the market quickly transformed into the top legal mobile sports betting jurisdiction in the U.S.
More Than Billion in Wagers for October
According to the New York State Gaming Commission, in October, the nine sportsbook brands collected a total wagering handle of over US$1.5 billion. The amount is 22.8% up from September’s volume. GGR for October hit approximately US$145.7 million, which as mentioned is a monthly record for the state, and translates to a hold of 9.4%.
Revenue for October was also slightly higher than September’s tally which was US$143.3 million. However, in terms of hold, in October operator hold of 9.4% is significantly lower than September’s one of 11.4%. But still, the monthly handle is the largest one for the state since March, and it has been going up since the return of the regular NFL season in September.
The increase in gross gaming revenue is welcome news for the local government, as sportsbook operators in the state are taxed at the hefty 51%. Therefore, the US$145 million in GGR translates to approximately US$74.3 million in tax revenue for the state. A record-setting month of mobile sports betting revenue also means a record-breaking month for tax revenue.
When it comes to operators, FanDuel still led the market in October, as the sportsbook collected the largest share of the market with US$609.1 million in handle and US$76.4 million in revenue. DraftKings, again second, got a handle of US$534.6 million and revenue of US$41.1 million. Caesars Sportsbook was third with US$195M in handle and US$14.9M in revenue.
Further Online Expansion
Soon New Yorkers may have more online gambling options on their hands since the local legislature is pushing toward the legalization of interactive casino games. State Sen. Joe Addabbo said that iGaming will be one of his priorities for the 2023-2024 fiscal budget. He also wants to see fixed-odds betting on horse races added to the state’s mobile sportsbooks.
The introduction of online gambling in a regulated manner could be quite beneficial, according to VIXIO GamblingCompliance. The organization projects that if legalized, iGaming could be bringing around US$428 million every year for the state. It is also believed that the online gaming market would quickly overshadow the already popular mobile sports betting one, as it often seen in other regulated jurisdictions.
Source: Zochodne, Geoff “New York Sports Betting Sites Generate Record Revenue in October” Covers, November 10, 2022