In less than six months, New York has collected the most tax revenue of any state from mobile sports wagering.
Since mobile sports wagering began on Jan. 8, data shows the state has generated $302.3 million in attendant tax revenue from eight authorized platform providers through June 26. Bally's Corp.'s Bally Bet, the ninth and final operator to receive a 10-year license, began accepting wagers on July 7.
By comparison, New Jersey generated $237.1 million in total sports wagering revenue — both mobile and on-premises — between June 2018 and May 2022, while Pennsylvania collected $265.6 million in sports wagering tax revenue between November 2018 and May 2022.
Pennsylvania and New Jersey both legalized sports wagering in 2018 after the Supreme Court in May of that year struck down a law that had limited sports betting to Nevada. Now some 30 states are offering the practice in various forms, including via mobile and at casinos and other in-person venues, while others have enacted legislation that will allow it.
New York is the largest state that conducts mobile sports wagering and has one of the highest tax rates — 51% — collected on such revenue.
As of April, New York State projected it would collect $357 million in mobile sports wagering taxes during its fiscal 2023, $465 million in fiscal 2024 and $493 million in fiscal 2025. The state expects to exceed the half-billion-dollar mark with $509 million in its fiscal 2026 and $518 million the following fiscal year.
Citing data from GeoComply, a software firm used by sports books to ensure geolocation requirements, New York said more than 2.9 million unique player accounts have been created in the state since January, leading to nearly 707 million transactions.
The other platform providers proffering mobile sports wagering in the Empire State are FanDuel Inc., DraftKings Inc., BetMGM LLC, Rush Street Interactive Inc.'s Bet Rivers, Caesars Entertainment Inc., Wynn Interactive LLC's WynnBET, PointsBet Holdings Ltd. and Empire Resorts Inc.'s Resorts World.
For fiscal 2023 and subsequent years, New York will allocate $5 million of the tax revenues from mobile sports wagering to fund sports programs for underserved youth, with $6 million earmarked to fund gambling education and addiction treatment. The balance will be allotted for education aid.
"The recent launch of New York's final sports wagering operator will provide key revenue for education, youth sports programs, and problem gambling support. I look forward to continuing to enact responsible gaming policies that provide exciting entertainment for New Yorkers of legal age — all with important safeguards in place to help those who need it," state Gov. Kathy Hochul said in a news release.