Online Sportsbooks In New York Take Nearly $2 Billion In Wagers Over First 30 Days In Business

New York’s online sportsbooks took in nearly $2 billion in bets over their first 30 days in business. 

Since NY online sports betting launched Jan. 8, betting apps in the Empire State accepted more than $1.98 billion in wagers, according to a release from the office of Gov. Kathy Hochul. This total resulted in over $138 million in total gross gaming revenue (GGR) and $70.6 million in taxes. 

According to GeoComply, more than 1.76 million unique NY player accounts combined for over 187 million transactions.

“Over the past month, we’ve seen how mobile sports wagering can be an economic engine for New York, driving significant funding to our schools, youth sports, and so much more,” Hochul said in a release. “As this new industry continues to grow, New York will make sure we have the resources and guiltiness in place to make it a success for all.”

Where does NY sports betting tax revenue go? 

For the fiscal year 2024 (Jan. 8-March 31), 98% of the state tax imposed on NY online sports betting will fund education. The remaining 2% will be split between funding sports programs for underserved youth (1%) and problem gambling education and treatment (1%). 

There were many questions about the massive 51% tax rate. And whether it is sustainable for operators over a longer period — with some, like DraftKings CEO Jason Robins, eyeing 2-3 year profitability in the state — remains to be seen. Especially given advertising and promotional spend will decrease. But so far, the state is benefiting greatly. 

Of course, for all the positives, there is also a societal cost. According to NYS Office of Addiction Services and Supports (OASAS), calls to the HOPEline increased 46% from Jan. 2021 to Jan. 2024. And the New York Council for Problem Gambling believes it should receive an additional $20 million from the state to combat addiction issues, as opposed to $6 million. 

How NY sportsbooks performed Jan. 31-Feb. 6

Caesars has really been front-and-center in NY since the start. But the sportsbook — which has had its share of both ups and downs in the state — fell to third in online sports betting handle for the Week of Jan. 31-Feb. 6 with $87.2 million. Industry leaders FanDuel ($130.3 million) and DraftKings ($87.3 million) took the top two spots.

Caesars came out strong with a massive ad and promo spend, but has been hurt by a multitude of issues. Still, the vast majority of the market share belongs to three operators.

Rounding out the rest and their handle:

• BetMGM: $34.4 million
• PointsBet: $12.2 million
• BetRivers: $8.4 million
• WynnBet: $251K

Read more: New York Sportsbooks Close January With $1.7 Billion In Wagers

It should be noted that WynnBet soft-launched Feb. 3 and didn’t make its full official announcement until Feb. 4. Still, aside from BetMGM, it’s going to be extremely difficult for the smaller operators to make a dent in a very competitive field. Resorts World (TBD) and Bally Bet (April) will also launch in the state.

What’s next on the NY sports betting calendar? 

According to the release, wagers included over $600 million on football, over $540 million on basketball and nearly $80 million on hockey. 

And New York expected to take $160 million in handle for the Feb. 13 Super Bowl, according to PlayUSA projections, second only to Nevada ($175 million). NY Super Bowl numbers should be released Friday. 

The sports calendar will turn after the initial NFL playoff burst. But with March Madness and the NBA/NHL postseasons on deck, there will still be plenty of marquee events for New Yorkers to wager on later this year.