New York has set new sports betting handle records in the industry. With mobile gaming becoming more popular, the Empire State looks towards approving iGaming as it could potentially generate a lot more revenue.
Mobile Sports Betting Surpasses $3.9 Billion Since Launch
Sen. Joseph P. Addabbo Jr. has been a key advocate for sports betting to take place in the state. He has also introduced Senate Bill 8412 in an effort to legalize sports betting across the state as he expects iGaming to take off and could potentially generate more revenue than sports betting.
From the launch date of January 8th to last week, March 13th, sportsbook operators have accepted over $3.9 billion in bets. According to New York State Gaming Commission figures released Friday, the state has collected $140 million in tax revenue.
In the span of March 7th to the 13th, eight of the nine operators have brought in $406.4 million in wagers. BallyBet, which would be the ninth operator, expects to launch its products and services next week.
Since the mobile launch began, FanDuel has had the largest handle thus far, slated at $1.38 billion. Caesars is the only other sportsbook that has hit the billion-dollar mark with $1.07 billion. DraftKings is closing in on the billion-dollar club with $952.5 million.
New York Could Look at Connecticut For Reference
Neighboring state Connecticut has shown that iGaming is much more popular than sports betting. In February, the Constitution State iGaming handle surpassed $743.8 million. When comparing the numbers to sports betting, the figures only hit 115.6 million.
The majority of the sports betting handle came via mobile wagering, as $108.7 million came through mobile platforms. By the middle of this month, approximately 500 iCasino games had been approved in Connecticut, which includes blackjack, craps slots, and poker, according to Kaitlyn Krasselt, who is the Connecticut Department of Consumer Protection communications director.
The live dealer category is still in the process of being organized and licensed.
Could New York Be Next on the iGaming Industry’s Radar?
Addabbo’s iGaming bill has been sent to the Senate Racing, Gaming, and Wagering Committee and is the committee chairman. A hearing date has not been set in regards to the bill; however, the legislative session ends on June 2nd.
If iGaming doesn’t get legalized this year, he firmly believes that it will be legalized at some point. He reiterated that mobile sports betting also took more than two years of back and forth discussions and negotiations before being approved.
The bill also notes some key advantages like setting aside a percentage of the revenue generated to combat gambling addiction as he stated, “We’re laying the groundwork.”
Addabbo has also looked into expanding the number of sportsbook operators that conduct business in the state. However, adding more sportsbooks means the tax rate based on revenue will most likely drop significantly from 51 percent.
If 14 sportsbooks are added by January 31st, 2023, the number could drop to 35 percent, and 25 percent if 16 are added by January 31st, 2024. A lot of consideration needs to be put in this category as doing so will mean less money will go towards things like funding schools and youth sports.