Where Will Tax Revenue From New York Sports Betting Go?
Credit: Getty Image/iStockphoto/TomasSereda
Legal online New York sports betting launched on Saturday, Jan. 8, much to the delight of anxious bettors looking to place their first wagers in the Empire State.
An influx of tax revenue for the state of New York is expected with the legalization of online sports betting — however, you may wonder, where exactly is that money going?
New York’s nine approved sports betting operators will initially have to fork over a historical 51% of their revenue to the state, which is tied with Rhode Island and New Hampshire for the highest tax rate for online sports betting.
Action Network has projected New York’s potential tax revenue to be about $166.3 million annually, which could do economic and social wonders for the fourth-most densely populated state in the U.S.
The state is facing a massive budget deficit, though it’s down to $2.9 billion due to federal aid. And New York has lost a projected $1.25 billion because the state did not legalize sports betting as early as other states, especially neighboring New Jersey.
New York has had in-person sports betting and generated $3.7 million in tax revenue since opening in July 2019. However, New Jersey, which has legal in-person and online betting, eclipsed $10M in October alone.
How New York Will Use Its Tax Revenue
Back in November, Sen. Joseph Addabbo Jr. told the New York Daily News that the tax revenue earned from mobile sports betting will go toward improving education and youth sports.
According to Usnews.com, New York ranks 16th among all states in education, 30th in infrastructure, 43rd in economy and 46th in opportunity. Overall, New York is ranked 21st in the U.S., which could be considered disappointing considering the state’s population and historical significance in the country.
The state will welcome the tax revenue, but all of the money flowing into the state should benefit other businesses as well — local TV and radio ads, ads on subways and buses, and so much more.
For more updates on New York and other states that will legalize online sports betting this year, check out our legalization tracker for news as it happens.