Not only in the United States but also internationally, New York has become the sports betting capital. The sports betting business venture launched on January 8th and has ultimately become second nature in the Empire State.
Mobile Sports Betting is Approaching Six Months in New York
Governor Kathy Hochul announced that sports betting has been a big hit in the Empire State. According to the New York State Gaming, the sports betting market has collected $267 million in revenue, and out of that amount, $263 million was generated by online sports gambling.
Currently, there are eight online bookmakers that are accepting wagers. Bally will be offering its products and services once the Commission gives the company the green light to launch. Despite a down month in April, New York has collected the most revenue in the industry’s history.
New Jersey, the pioneer of the sports betting industry, has collected $229 million since the launch began in June 2018. Pennsylvania, another neighboring state, has collected $253 million since November 2018. The Empire State has finally surpassed Pennsylvania’s revenue total in under six months.
Where Does the Revenue Go Towards
The New York sports betting market is home to some of the biggest sportsbook operators in the world. Not only in New York but throughout the country, FanDuel is the most renowned sportsbook. The sportsbook has led the market share numbers across many jurisdictions.
Before the mobile sports betting market existed in the Empire State, New Jersey benefited from residents crossing over to place bets. Monthly handles had a 20 percent boost from those crossing over from the Empire State.
The reason New York has been able to generate a plethora of revenue is due to its high tax rate based on adjusted revenue. New Hampshire is the only other state that has a 51 percent tax rate. Bookmakers also don’t have the option to use promotional deductions in the state.
Governor Hochul added, “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…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.”
The tax revenue goes towards funding education, youth sports programs, and program gambling programs that are designed to help that affected recover.
Will the Tax Revenue Go Down in the State
Pennsylvania’s tax rate is also considered to be very high, but it’s currently situated at 36 percent for mobile sports betting. New Jersey has a 13 percent tax rate. The issue is that many mobile sportsbook operators in the Empire State have expressed their concerns about the market.
Due to the high cost of acquiring new customers, BetMGM has scaled back its operations. DraftKings has also expressed hardships in making profits, and the stock price has been down as well.
State Sen. Joseph P. Addabbo stated that it is a conversation that should be had, but the discussion must be had at a later time. In regard to the current 51% tax rate, Addabbo said he wants to see where we are after the baseball and football seasons.
He also stated a few months ago that bookmakers knew what they were getting into since they knew about the tax rate before the market launched.
New York will still be the biggest sports betting market in the industry. It could all change as sports betting will be on the ballot in the upcoming election in California.
There are also discussions of a sports gambling market in Texas. The Seminole Tribe in Florida quietly launched Hard Rock Sportsbook before it was shut down.