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New York surpasses $4 billion in sportsbook revenue
The Empire State is the first state to reach this total in revenue from sports betting.
The New York State Gaming Commission reported $134.2 million in operator winnings for the month of June after an influx of $1.47 billion total handle. With these numbers added to the all-time totals, New York has become the first state to cross $4 billion in revenue earned by its sportsbooks.
The state accepted its first legal online bets in January 2022 and has had a monthly betting handle of at least $1 billion in 27 of 30 months since. As a result, revenue for the operators has eclipsed $100 million in 26 of 30 months.
With June’s report, New York has crossed $1 billion in sports betting revenue for the calendar year. As a result of their 51% tax rate, the state has collected $517.1 million in tax revenue on the year and more than $2 billion in tax revenue since the launch of online betting in January of 2022.
Then-Governor Andrew Cuomo projected $500 million per year in tax revenue when pushing for the legalization of sports betting. The state has surpassed that projection with half of the calendar remaining in 2024. Notably, the most popular part of the sports betting calendar – football season – still remains. Current Governor Kathy Hochul projected $860 million in digital gaming tax revenue for the Fiscal Year 2025.
FanDuel is the top operator in the New York market. In June, it reported $67.1 million in revenue after taking in $571.3 million worth of bets. With the first week of July in the books, FanDuel has now paid more than $1 billion in taxes to New York since the launch of online betting.
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DraftKings came in second place with $40.9 million in revenue in June. Caesars and BetMGM both reported $6.8 million in revenue, while Fanatics reported $6.7 million to round out the top five. BetRivers was the only other sportsbook to report significant earnings with $2.5 million in revenue for June. BallyBet, Resorts World and Wynn all reported less than $700,000 in revenue.
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New York betting has been a huge success
When online betting became legal in New York, there was little doubt it would be a successful venture. New Yorkers love their sports, with 11 teams scattered across the four major sports. In addition, there are three FBS programs and 22 Division-1 college basketball programs throughout the state. On top of that, New York has the second-highest average salary in the nation, meaning there is plenty of disposable income available in the state.
New Yorkers have had to deal with some hurdles when placing bets. The state’s high tax rate influences the promotions and offers available to bettors. Some sportsbooks, such as BetMGM, offer no sign-up bonus for New Yorkers. Other sportsbooks offer lesser versions of the sign-up bonus available in other states. Daily promotions for existing users are also less abundant in New York.
New York also has some relatively archaic rules in place when it comes to sports betting. For example, residents of New York cannot bet on any college located within the state. There are no player props available for college sports. Bettors cannot bet on popular markets such as awards and drafts.
Despite all of that, no state bets more money on a monthly basis than New York. That shouldn’t sound surprising when considering the landscape, but there were some early concerns.
Other big states should follow
Given the runaway financial success of sports betting in New York, other large states have a clear incentive to follow suit.
Texas is one state where there seems to be an appetite for legalized betting. A recent poll showed just 26% of voters vehemently opposed legalizing online wagering. Owners of the Dallas Cowboys, Texas Rangers and Dallas Mavericks have voiced their support for legislation.
Despite that, the state won’t consider the idea again until the next legislative session in 2025. A 2023 bill saw support from the House but was shot down by the Senate. DraftKings CEO Jason Robins expressed optimism about some movement towards legalization in 2025, but Dallas Stars president Brad Alberts said the idea of legalization in 2025 seems “50-50 at best.”
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While there might be some optimism in Texas, there’s much less in California.
Sports betting was put on the ballot in November of 2022, and less than 20% of voters supported the idea of legalizing online sports betting. California’s tribes will play a major role in the future of sports betting in California. At the moment, nothing seems remotely close.
California is home to 15 teams in the four major sports while Texas is home to eight. Both states have large populations with plenty of disposable income. When looking at the success in New York, it seems that the financial incentives at play make it only a matter of time before Texas and California follow suit.