ALBANY — It’s been a year since New York first allowed mobile sports betting and the results have exceeded expectations.
Bettors put up more than $16 billion since the practice was first authorized on Jan. 8, 2022.
That’s resulted in more than $709.2 million in taxes, which exceeded early estimates that mobile sports betting would bring in about $500 million.
The money has flowed in spite of early predictions that a 50 percent minimum tax would hinder sports betting in New York. Other states charge lower tax rates to firms seeking betting licenses.
Taxes were a point of debate between former Gov. Andrew Cuomo, who pushed through the plan to allow sports betting, and some lawmakers as well as operators who said the tax rate would be a deterrent.
In addition to the tax revenue, the state has taken in more than $200 million in licensing fees from the nine online sports books in the state, including DraftKings and Fanduel, as well as Caesars, BetRivers and ResortsWorld.
The last two are affiliated with brick-and-mortar casinos and video lottery centers respectively.
Gov. Kathy Hochul on Friday boasted about New York’s strong showing in the sports betting arena. With a population of more than 19 million and numerous well-known teams like the Yankees, Mets, Giants, Jets, Bills, Knicks, Nets, Islanders and Rangers, the state has quickly become one of the nation’s leading centers for mobile sports betting.
“In just one year, New York has become a national leader in providing responsible entertainment for millions while bringing in record-shattering revenue,” Hochul said in a prepared statement. “I look forward to another year of delivering top tier mobile sports wagering experiences that generate revenue to enrich the lives of New Yorkers across the state.”
The governor’s office noted that GeoComply, a software firm used by sports books to ensure geolocation requirements, noted that more than 3.8 million unique player accounts have been created since launch in January 2022, conducting over 1.2 billion transactions.
Heading into the current legislative session, the financial success of mobile sports betting has sparked discussion of possible expansions.
Legal Sports Report, an industry letter, recently noted that there has been talk of allowing sports book bets on events like the MVP and Heisman Trophy awards as well as putting betting kiosks in sports stadiums.
It remains unclear though, whether lawmakers in the Legislature’s gaming committees will pursue such options since the state is also looking this year at issuing three new casino licenses in the New York City area.
[email protected] 518 454 5758 @RickKarlinTU