New York Sets Sports Betting Tax Revenue Record
Photo by Jim McIsaac/Getty Images. Pictured: Aaron Judge #99 of the New York Yankees
Gov. Kathy Mochul announced earlier this month that New York had set a sports betting state record for tax revenue, generating $267 million in the five months since legal wagering went live.
Legal online sports betting went live on Jan. 8, and thanks to New York’s astronomical 51% tax rate, which is tied with New Hampshire for the highest in the country, it didn’t take long for The Empire State to set the new tax revenue record. New York and New Hampshire join Delaware and Rhode Island as the only states that tax sports betting operators on at least half of their earnings.
“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 in a news release. “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.”
By the Numbers
Comparing New York to New Jersey sports betting, New York set the $267 million record in five months while New Jersey, which has a 13% tax rate, has generated $229 million in tax revenue since legal online sports betting went live in June 2018. Pennsylvania, which has a high tax rate compared to most states (36%), has totaled $253 million in tax revenue since legal sports betting went live in May 2019.
Casinos account for about $4.3 million (of the $267 million) since sports betting launched in July 2019, which has surpassed all other states.
It shouldn’t be a surprise that New York has set the tax revenue record given it’s the fourth most-populous state in the U.S. and the high tax rate. The states that are more populated than New York — California, Texas and Florida — are either in the process of potentially legalizing sports betting or not considering legalization this year.
New York’s May Sports Betting Handle
In May, New York sportsbooks brought in more than $1.26 billion from online wagers. Almost $110 million in gross gaming revenue (GGR) was generated last month. Net revenue for operators and education was $53.8 million and $56 million respectively.
According to the New York State Gaming Commission, New York’s online sportsbooks have generated more than $7 billion in mobile wagers and over $500 million in GGR since sports betting went live. New York has eight total sportsbooks — BetMGM, FanDuel, DraftKings, BetRivers, Caesars, PointsBet, WynnBET, and Resorts World Bet.
The May totals were not quite at the level that New York enjoyed earlier this year, as the state has experienced a bit of a lull as the initial excitement from the sports betting launch wanes and pro and college sports leagues are entering their offseason. Once pro and college football return in the fall betting handle and revenue is expected to rise again, though the 51% tax rate is causing some sportsbooks, like BetMGM, to reassess their spending in the state.
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