The state of New York collected more than $302 million in Mobile Sports Wagering Tax Revenue within the first six months of operation. This figure far surpasses the mobile sports betting program of every other state and the state’s own revenue projections
Governor Kathy Hochul announced these record-setting figures in a press release last week, noting the program will provide the state with key revenue for education, youth sports programs, and problem gambling support.
“In just six months, 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,” said Governor Hochul.
New York collected more in mobile sports betting revenue in six months than any other state. Pennsylvania collected $265.6 million in sports wagering tax revenue through May 2022, which had been the previous highwater mark. New Jersey generated $237.1 million since June 2018.
Revenue Outpaced Projections
For the 2022 fiscal year, New York projected $249 million in mobile sports betting revenue back, a figure that included $200 million in license fees. The total collections for the state turned out to be $361 million, including those already-collected fees. The state sported nearly three million new unique player accounts since January, a group which completed over 700 million transactions.
“Thanks to Governor Hochul’s leadership, New York State has established itself as the leader in sports wagering in only six months,” said New York State Gaming Commission Executive Director Robert Williams. “The numbers and timeline clearly indicate that New York’s model successfully harnessed the excitement of sports wagering and continues to maximize its potential.”
This surprising performance outpaced New York’s early projections for mobile sports betting tax revenue, which in turn led to adjusted projections going forward. The record-breaking performance came despite June having the state’s shortest monthly total since the regulated market opened in January.
For the 2023 fiscal year, the state projects $357 million in tax revenue, with the figures increasing from there. For the 2024 fiscal year, New York expects $465 million, $93 million in 2025, $509 million in 2026, and $518 million in 2027.
New York Mobile Sports Betting Revenue to Help State Programs
The main beneficiary of the state’s Mobile Sports Wagering Tax Revenue remains important social programs run by the state. New York’s sports betting revenue funds education and youth sports programming, as well as problem gambling support. This includes prevention and treatment programs, in addition to recovery services.
“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,” said Governor Hochul.
For the 2023 fiscal year, the state will allocate $5 million to fund sports programs for underserved youths, $6 million to fund problem gambling education and treatment, and the remaining majority to education aid.
“We look forward to the positive impact that this revenue will have on the expansion of prevention, treatment, harm reduction and recovery services for problem gambling,” said New York State Office of Addiction Services and Supports Commissioner Chinazo Cunningham.
In addition to the sports betting tax revenue, New York collected $25 million in license fees from each of the eight mobile sportsbooks. That includes the most recent to launch, BallyBet.
BallyBet went live in New York state at the beginning of July, bringing the total number of online sportsbooks in the state to nine. Bally’s Corp., based in Rhode Island, became the last of the mobile sportsbooks operators who were awarded licenses by the New York State Gaming Commission to officially go live.