When you sign-up through links on our site, we may earn an affiliate commission. Learn more >
Since Launching in Jan., NY’s Sports Betting Market Generated $500M in Tax Revenue
New York Has Invested Most of that Tax Revenue into Education, Youth Sports, and PG
The Empire State Sports Gambling Market's Total Handle is $13.5B and Counting
Once New York lawmakers got tired of watching the state’s potential sports betting cash cow mosey elsewhere, they worked together to legalize that activity for residents by January 2022, and ever since that market has been booming with activity and generating profits for all.
According to a recent release by Gov. Kathy Hochul, from Jan. 8 to Oct. 30, New York’s nine licensed sports betting operators have created $1.06 billion in gross gaming revenue (GGR), a figure that gets taxed at a 51% rate earning the state about $541.4 million in tax revenue.
It’s new money that, prior to January, left the state either via unregulated offshore sportsbooks, illegal local bookies, or worse, to nearby states that already legalized that activity, behavior that frustrated State Assemblymember, Gary Pretlow.
Pretlow is the chair of the Assembly Committee on Racing and Wagering and he told the media exactly what drove him to sponsor this legislative issue:
“When Senator (Joe) 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. Our success was inevitable…”
Now instead of leaving the state, that money stays put, gets taxed, and the revenue from that process gets reinvested into projects that benefit residents.
The state of New York taxes the sports betting market at the highest rate in the country, 51%, and Governor Kathy Hochul has no doubt that the money it raises is being well spent on worthy causes that help the people who live there, saying in a recent release:
“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.”
Not only do New York sports gamblers have it easier now with access to a well-regulated (safe) market in which to wager, all that money that used go unaccounted for is being reinvested in worthy projects – education, underserved youth sports, and battling problem gambling.
It’s a win-win situation that is gradually becoming worth billions.
Since the U.S. Supreme Court overturned PASPA in May 2018 allowing each state to decide if they want a legal, regulated, and taxed sports betting market of their own, over thirty states have done just that and launched their own versions of that mobile and/or retail operation.
Together, those states have generated a total handle of $163.8 billion which has created $12.2 billion in total revenue which has equated to almost $2 billion in total tax revenue split between those thirty-plus states, money that didn’t exist for them prior to those launches.
Despite a slow Sept., NY’s legal sports gambling market is responsible for $13.5 billion of that total U.S. handle, the state’s large population of gamblers is a big reason for the success, a clear sign to the states still on the fence regarding this issue that legal sports betting is here to stay.
Mike Lukas is a retired standup comedian turned freelance writer now living in Dallas, Texas, originally from Cleveland, Ohio. His love for the game of football and all things Cleveland Browns turned Mike into a pro blogger years ago. Now Mike enjoys writing about all thirty-two NFL teams, hoping to help football gamblers gain a slight edge in their pursuit of the perfect wager. Email: [email protected]More info on Mike Lukas
© Rebel Penguin ApS 2023 (a subsidiary of Gaming Innovation Group Inc.)
We support responsible gambling. 21+ Only. Gambling problem? Call 1-800-Gambler.
WSN.com is run by iGaming Cloud Inc (a Gaming Innovation Group Subsidiary) and is registered with the New Jersey Division of Gaming Enforcement (DGE) under affiliate vendor ID 89744, with the Indiana Gaming Commission (IGC) under certificate of registration number SWR-000148, approved by the Pennsylvania Gaming Control Board as a gaming service provider, under certificate registration number 117656-1, possesses a Vendor Minor sports betting license from the Colorado Limited Gaming Control Commission (account number 94414163), granted a vendor registration number VR007603-20-001 by the Michigan Gaming Control Board, an interim Sports Wagering Supplier license, under license number SWS 066, issued by the West Virginia Lottery Commission, a sports betting vendor registration, under registration number #100400, issued by the Director of Gaming Licensing and Investigations of the Virginia Lottery to operate in the State of Virginia, and a Vendor Registration issued by the Sports Wagering Committee of the Tennessee Education Lottery Corporation.
Advertising disclosure: WSN contains links to online retailers on its website. When people click on our affiliate links and make purchases, WSN earns a commission from our partners, including ESPN and various sportsbooks.