In an unprecedented turn of events, New York’s sports betting revenue soared to $203.3 million in May, as revealed by the New York State Gaming Commission. This marks only the second instance where the Gross Gaming Revenue (GGR) has exceeded the $200 million mark within a single month, the previous record being a staggering $211.5 million in January 2024. The latest figures showcase an impressive 33.8% increase compared to May 2023, reflecting the state’s thriving sports betting landscape.
The month of May was also a landmark for mobile sports betting. New York’s mobile sports betting handle reached a monumental $1.97 billion. This not only signifies an impressive 45.9% growth year-on-year but also stands as the highest amount recorded since November 2023. These results underscore the heightened interest and increased participation in mobile sports betting across the state.
The net revenue for platform providers also experienced a substantial uplift, hitting $99.6 million. This figure, second only to the peak experienced shortly after the market’s inception at the start of 2022, highlights the competitive and lucrative nature of New York’s sports betting industry.
Among the major players, FanDuel emerged as the biggest winner. The company achieved a GGR of $88 million from a handle totaling $747.5 million. Following closely was DraftKings, with an impressive handle of $812.3 million, resulting in a GGR of $84.2 million. While DraftKings’ handle was higher, FanDuel’s hold percentage translated into greater GGR, reinforcing its strong market position.
Caesars Sportsbook distinguished itself among the other seven operators by surpassing the $10 million GGR mark. From a handle of $160 million, Caesar’s Sportsbook generated an $11.1 million GGR. Other notable contributors included BetMGM, which reported a handle of $117.3 million and GGR of $8.
.1 million, and Fanatics, contributing $7.0 million in GGR from a handle of $71.7 million.
Since the legalization of online sports betting in New York in January 2022, the state has recorded consistently high levels of growth. The state has overshadowed other more established regulated betting markets in other U.S. states including New Jersey and Indiana in terms of both revenue and handle. This swift expansion has positioned New York as a front-runner in the fast-evolving sports betting industry.
In addition to generating substantial revenue, New York has also become the largest contributor to sports betting tax in the United States. According to the Quarterly Survey of State and Local Tax Revenue (QTAX), conducted by the United States Census Bureau earlier this year, New York contributes over 37.0% of the total tax revenue generated from sports betting across the nation.
The report disclosed that in Q3 of 2023, sports betting had accumulated national tax and gross receipts totaling nearly $506.0 million. New York’s contribution to this figure stood at an impressive $188.5 million, substantially outpacing Indiana’s $38.6 million. This significant share further underscores New York’s leadership in the sector.
However, it’s noteworthy that New York’s contribution is also a reflection of its relatively high tax structure. The state’s 51% tax on gross gambling revenue is the highest in the nation, which means operators contribute a larger portion of their revenue compared to other states. Despite this, the state’s sports betting market continues to thrive, driven by robust participation and significant wagering from its populace.
In conclusion, New York’s sports betting market is not only breaking new revenue and participation records but also setting benchmarks for other states to follow. With its significant contributions to the national tax pool and its booming market dynamics, New York has firmly established itself as a pivotal player in the U.S. sports betting industry. Looking forward, the state’s strategic measures and market trends indicate the potential for continued growth and sustained leadership in the sector. As other states scramble to emulate New York’s successful sports betting model, the Empire State continues to blaze the trail in this lucrative arena.
