New Yorkers have spent around $603 million on sports wagers since the launch of mobile sports betting in the state. The New York State Gaming Commission released the initial figures last week after allowing online sportsbooks to begin operations on January 8, 2022.
Wagers on the NFL, NBA, NHL, and other sporting events have generated over $4.2 million in gross revenues from January 8-16. The 51 percent tax rate imposed on mobile sports betting sites means that the state pulled in $24.6 million in just over a week.
New York has already surpassed Pennsylvania as having the most successful launch. In November last year, the Keystone State generated $23 million in sports betting revenue for the entire month.
As it is already averaging a daily spend of $67 million, the Empire State looks on track to break the record set by New Jersey. The neighboring state saw $1.3 billion spent on sports bets in October 2021, equalling $41.9 million wagered per day.
Following the New York sportsbetting launch, “betting volume is hugely surpassing even the most optimistic projections so far” said gambling industry analyst Jenny Tang.
NYS Gaming Commission director of communications Brad Maione said, “We have been pleased with the handle [amount wagered], which indicates interest in mobile sports wagering and accessibility to the licensed providers.”
Senator Joe Addabbo Jr. (D-Queens), who chairs the racing, gaming and wagering committee praised the great start.
“These are great numbers. It’s a solid start and we have the National Football League playoffs and the Super Bowl coming up,” said Addabbo.
Caesars Is Early Leader
Although it’s still early days for the online sports betting industry in New York, Caesars Sportsbook is the current market leader. The operator posted $257.7 million in received wagers, generating $22.7 million in gross revenues. FanDuel was not far behind, recording $200.4 million in bets and $14.1 million in revenues. Draft Kings accepted $134.4 million and made $10.9 million in revenues, and BetRivers made $446,696 after receiving $10.6 million in online wagers.
Before the launch of mobile sports betting, many officials had expected mobile wagers to generate over $480 million in yearly tax revenue in New York. However, if the industry continues growing at this pace, it could eclipse this estimate.
“We will see if NY can keep up these massive numbers as the sports calendar turns and promos for new users start dying down,” said Mike Mazzeo. “However, this report certainly inspires encouragement as the state has the potential to become the No. 1 sports betting market in the US.”
Though the amount spent on sports has broken US records, it could have been even more if Caesars Sportsbook’s platform hadn’t suffered glitches that prevented bettors from placing wagers.
Before sports betting laws changed in the state, New Yorkers could only place wagers in person at upstate casinos. As this is a long trek for Big Apple residents, many simply set up mobile accounts and made a trip to New Jersey to place bets using their smartphones.
Laws in New York and New Jersey legislation, however, both prohibit betting on in-state college teams. Therefore, bettors still have to travel to Connecticut or Pennsylvania to circumvent this rule.