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NY Sports Betting Action Brings in $542M for State Coffers Since Jan Debut
By Jeff Osienya Nov 17, 2022 IndustryThe Empire State has generated over $500 million for its state coffers from less than 10 months of regulated mobile sports wagering. Sports bettors spent over $13 billion on wagers for the indicated period, and operators garnered $1.06 billion in GGR.New York is taking the mobile sports betting market in the US by storm and is not showing signs of slowing down. On Wednesday last week, a day after being re-elected, Governor Kathy Hochul announced that the Empire State had collected $542 million in taxes from mobile sports betting. In addition, the state collected $200 million in licensing fees on top of the tax levied, bringing the total revenue to above $740 million, surpassing all other states in the US.
Further, based on information from the New York State Gaming Commission (NYSGC), all nine licensed mobile betting operators in the state collected a combined $1.06 billion in gross gaming revenue (GGR). The said GGR was generated from a total handle worth a whopping $13 billion. These stellar figures were recorded from January 8, when mobile sports wagering went live in New York, through October 30, 2022.
Besides its large population, the high 51% taxation has allowed New York to earn more revenue for its coffers much faster than other states that had legalized sports betting years earlier.
In her announcement, Gov. Hochul celebrated the big win by saying:
Quote“By bringing sports wagering to New York, we have not only opened the door to responsible entertainment for millions of sports fans, but we have also brought in significant revenue to support schools, as well as youth sports, while implementing important safeguards to help those who need it. I’m proud of the work that has been done to secure our state’s top position in mobile sports wagering, and I am excited to continue the trend as we secure hundreds of millions of dollars to support programs that will improve the lives of New Yorkers.”
More Shining Sports Wagering Stats in The Empire State
Since day one, the Empire State has been crushing records in the nationwide regulated sports betting scene. For instance, by the end of January, NY collected $63 million for its coffers, smashing all previous monthly records for sports betting tax amassed by any other US jurisdiction. Come September 2022, New York garnered $73 million in taxes from mobile sports betting to set a new monthly best after surpassing its $63 million January record.
In addition, based on reports by GeoComply, since going live in January, more than 11.3 million sports bettors have created unique gaming accounts. The said players conducted about 985 million transactions within the 10 months ending October 30. GeoComply is a leading software technology company that runs location data for sports wagering operators across the United States
Looking at individual sports performances over the 10-month period, Major League Baseball received the most action at $2.6 billion, whereas NBA came in a close second at $2.6 billion. Bets on NFL games, including the 2022 playoff and more than ten regular season weeks, stood at $1.3 billion, while college football, on the other hand, took in $406 million in bets.
From the financial year 2023 onwards, NY will channel revenue from mobile sports betting toward three main initiatives. First, $6 million will be allocated to problem gambling education and treatment, and $5 million will be set aside to fund sports programs for underserved youths. Finally, the remaining hundreds of millions generated from taxing the activity will be pumped into education aid programs. Meanwhile, since the state’s mobile sports betting debut, $527 million of the net revenue has been channeled to the funding of education initiatives.
New York’s Sports Betting Performance Receives Rounds of Applause
Gary Pretlow, the Mount Vernon state representative and chairperson of the NY Assembly’s Standing Committee on Racing and Wagering, was among the lawmakers who lauded the excellent performance. He voiced his delight over New York’s mobile sports betting results, saying:
Quote“I’m elated with the success of mobile sports betting in New York but not surprised! When Senator Addabbo and I proposed the bill to legalize mobile sports wagering in New York, we knew the fans had an appetite for wagering because they were going across the river to bet in New Jersey. We have a robust sports market in New York, with multiple teams in each major sports league (NFL, NBA, NHL, & MLB). Our success was inevitable – that’s why we wanted to incorporate as many entities and affiliates as possible. This endeavor has been a win/win for New Yorkers as we have generated millions in revenue for education and youth sports while not turning a blind eye to responsible gaming programs.”
Brian O’Dwyer, the chairman of the New York State Gaming Commission, noted that because Gov. Hochul adopted innovative gaming policies, sports wagering delivered transformative and real-time results to the Empire State. In addition, O’Dwyer reiterated that revenue generated from mobile sports betting would be utilized in areas such as schools, responsible gaming programs, and youth sports.
Chinazo Cunningham, the Commissioner at the New York State Office of Addition Services and Supports, also chimed in. She highlighted that her office was ready to provide support and services to New Yorkers struggling with problem gambling. In addition, the money allocated to the Office of Addiction Services and Supports (OASAS) from the revenue from mobile sports betting would help the organization expand its services. Some of the primary services provided by the OASAS include harm prevention, reduction, treatment, and recovery throughout the state.
State Senator Joseph P. Addabbo, Jr., one of the most vocal legislators who championed gaming expansion in the state, said:
Quote“Since New York entered the mobile sports betting market back in January, we have collected over $500 million in tax revenue. That is an incredible achievement - especially in only a 10-month timespan with only nine operators - with the majority of this money going towards the state’s educational coffers, gaming addiction programs, as well as youth sports programs.
With this great start, I look forward to a greater potential for increasing the benefits of mobile sports betting for the residents of New York with the NFL season in full swing, the NHL and NBA seasons getting underway and the current World Series”
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