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New York’s Inaugural Sports Betting Year Brings Historic $16B HandleWith a $16.2 billion handle in 2022, the Empire State has blown the competition out of the water in just one year of mobile sports wagering. The newest kid in the block has bested veterans of the highly competitive sports betting scene.
The concrete jungle where dreams are made of, New York, is once again making the headlines in the gambling scene. After launching mobile sports wagering in Jan 2022, the Empire State broke one gambling record after another and has officially been crowned king in just a year of betting activity.
According to the latest announcement by the New York State Gaming Commission (NYSGC), the Empire State has raked in a handle of a whopping $16.2 billion in its first year of operations. Through 2022, the total Gross Gaming Revenue (GGR) also broke the $1 billion ceiling, ending up at $1.36 billion. The state then took home an impressive $693 million for its coffers thanks to its 51% tax rate.
Expressing her delight about the smashing performance, Governor Kathy Hochul issued a statement that read in part:Quote
“In just one year, New York has become a national leader in providing responsible entertainment for millions while bringing in record-shattering revenue for education, youth sports, and problem gambling prevention. 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.”
A Stellar Year of Smashing Records Back-to-Back
The records New York has broken in its first year of mobile sports wagering cannot be fully appreciated until you give the numbers a closer look. For instance, New York’s handle shattered the $1 billion ceiling within 10 out of the first 12 months mobile wagering was legal in the state.
Moreover, the $16 billion handle is also a record high for any US state during its first year of operations since PASPA’s repeal in 2018. In fact, the showing is so impressive that it is 40% more than the volume of wagers that have ever been placed by any US state in a calendar year. Jersey held the previous record of an annual high of $10.9 billion in 2021.
Additionally, the Empire State also holds monthly handle records nationally. For instance, in January 2022, the state registered $1.67 billion in wagers, which is the most ever registered in any single month of activity. NY also saw a $148.2 million GGR in November 2022, which is also the highest ever recorded in a month.
Finally, still in November last year, at $72.6 million, the tax revenue collected that month is also the highest monthly figure ever registered. The state also took home about $200 million in licensing fees over the past year, the best-ever figure recorded for licensing nationally for a single US state.
FanDuel and DraftKings Lead the Way
Regarding the individual market leaders, all the top names you’d expect to find jostling for space lined up as expected on the leaderboard. FanDuel proved to be the dominant sportsbook, with a 40% market share worth approximately $6.5 billion in wagers. As a result, FanDuel generated $650.5 million worth of revenue, accounting for 48% of the state’s total mobile wagering revenue.
DraftKings came in second place, with a market share of 28%, which was worth a handle of roughly $4.5 billion for the entire year. The said activity generated $345.6 million in revenue, thereby capturing 26% of the mobile wagering revenue produced by New York in 2022. Next in line was Caesars, whose numbers were significantly impacted by its $3,000 bonus program. The sportsbook commanded 17% of the statewide handle, worth $2.8 billion, with the revenue garnered hitting $214.6 million or 16% of New York’s entire win.
Finally, the BetMGM platform processed $1.3 billion worth of wagers to nab 8.3% of the statewide handle, to bring in 6% of the total revenue, or $81 million. Overall, the big four combined for a total of 93.3% in all bets placed and 96% in revenue share in 2022. The remaining sportsbooks in the state, like PointsBet, BetRivers, WynnBet, Resorts WorldBet, and BallyBet, processed the remaining 6.7% of the statewide handle and generated 4% of the cumulative revenue.
51% Rule is Likely to Stay
The 51% rule has come under sharp criticism from some of the industry’s big players like DraftKings, Caesars, BetMGM, and FanDuel. However, with over $600 million in tax proceeds from wagering for the 2022 calendar year, it seems that this rule is here to stay in the Empire State.
The remarkable performance even has some industry insiders point out that the stellar numbers registered are a direct result of this particular rule. Operators, on the other hand, argue that this rule prohibits market growth since it makes it pretty hard for them to make profits.
Be that as it may, it seems the 51% taxation code is sticking around. Even Gary Pretlow, the legislator who was pushing for its reduction not so long ago, seems to have come to terms with the idea that the rule is here to stay. He even went as far as hinting that he probably won’t try to re-ignite his reduction proposal.
iGaming and Casinos Expected to Follow in NY
With New York breaking various records in the mobile wagering specter, it is expected that the focus will gradually shift to online gaming to raise more revenue from gaming. Several New York legislators are already gunning for the state to legalize online poker to boost the earnings that state coffers will receive from the gambling scene. Likewise, it is expected that many bills from legislators across the political divide will be tabled trying to legalize iGaming in a bid to tap into the wealth of potential it holds for the state.
Further, the Empire State is also in the process of granting building permits to several operators and brick-and-mortar casinos that intend to set up shop in the state. Some of the incoming developments in the area include a casino in the parking lot of the New York Mets’ CitiField stadium, an idea that Mets owner Steve Cohen pitched.
Additionally, a proposal to build a casino in Hudson Yards, a joint venture that will see Steve Ross’ Related Companies join forces with Wynn Resorts, is already in the works. Finally, there is talk of an epic trio of Jay Z’s Roc Nation, SL Green, and Caesars Entertainment planning a casino development in the iconic Times Square.
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