State officials salute online sports betting as “economic engine” of New York
New York Governor Kathy Hochul has hailed the launch of mobile sports wagering in the state after operators generated almost $2bn in handle during the opening 30 days.
More than $1.98bn has been wagered by consumers in New York since the state opened its doors to online sports betting operators on 8 January 2021.
Since then, licensed companies have combined to produce gross gaming revenue of more than $138m, generating tax revenue in excess of $70m for the state on its 51% tax rate.
New York has eclipsed every record previously set by other US states to have legalised online sports betting, including neighbouring New Jersey, which has been live since 2018.
“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,” said Hochul.
“As this new industry continues to grow, New York will make sure we have the resources and guidelines in place to make it a success for all,” she added.
DraftKings, FanDuel, Caesars and Rush Street Interactive went live on day one in New York and have since been joined by BetMGM, PointsBet and WynnBet, in that order.
The latest data from the New York State Gaming Commission – up to 6 February 2022 – shows that Caesars Sportsbook is leading the revenue rankings ahead of the competition.
It has so far generated $64.7m in GGR from $702.7m in handle. DraftKings is currently second with $35.8m, while FanDuel completes the podium places with GGR of $30.2m.
This could all be subject to change, however, once this year’s Super Bowl betting is factored into the data. It took place on 13 February and was the first edition to take place following the legalisation of online sports wagering in New York and several other states.
It was a mega event for the operators involved as gambling on the glamour fixture reached record highs. The market was awash with attractive acquisition offers for new customers, but betting firms also faced some significant pay-outs after victory for the LA Rams.
GeoComply, which monitors mobile sports betting activity, logged more than 80 million transactions during Super Bowl weekend, more than double last year.
It also revealed that 5.6 million unique accounts accessed a legal online sportsbook ahead of and during the event, to mark a 95% increase on last year’s clash.
Assemblyman J. Gary Pretlow, who lobbied for the legalisation of mobile betting in New York, said the state was well on its way to becoming the sports betting capital of the world.
New York has so far seen over $600m wagered on football, more than $540m on basketball and nearly $80m on hockey, according to the governor’s office.
State Senator Joseph Addabbo Jr. added: “When we brought mobile sports betting to New York, we had confidence it was going to be a success, but to be able to break the national record of total handle for sports betting in a single month in our very first month, with primarily only six sportsbooks, is both rewarding and promising.
“Breaking this record proves that New York was ready for mobile sports betting and we are providing our state with a new significant revenue, educational and addiction funding source.
“It also can give us an indication of where we go from here, building upon a solid foundation especially with the Super Bowl and March Madness within our sights. The future is extremely bright for mobile sports betting in New York,” he added.
(Photo by NYS Division of Military and Naval Affairs New York Guard Cpt Mark Getman)