According to a US Census Bureau study, New York accounted for 37% of all sports betting tax revenues in the United States in the third quarter of 2023.
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In a recent report issued by the Quarterly Survey of State and Local Tax Revenue (QTAX), New York’s online sports betting operators delivered nearly five times as much revenue as the second leading state, Indiana, with a stunning $188.5 million of the $506 million in sports betting tax revenue generated by all the states in Q3 2023.
New York is the most densely populated state that has legalized mobile sports betting and its 51% tax rate is the highest in the nation. Combine the two, and it is not hard to fathom why the Empire State generated 37% of the entire tax revenue in the third quarter of 2023 and continually outpaces all the others.
The $506 million in combined Q3 2023 tax revenue was over 20% higher than Q3 2022 but lower than the $571.5 million reported in the previous quarter. The top five states in sports betting tax revenue for Q3 2023 after New York were Indiana ($38.6 million), Ohio ($32.9 million), Illinois ($32.4 million), and Pennsylvania ($28.8 million).
FanDuel Is New York’s Favorite
New Yorker’s appetite for sports betting continues unabated as January saw bettors in the Empire State break another record with sportsbooks raking in $211.7 million, another new nationwide record, due to an impressive 10.2% hold. The staggering revenue report broke Ohio’s previous record of $208 million set in January 2023 and is only the second time the $200 million monthly revenue threshold has been breached.
Perhaps even more astounding is that FanDuel accounted for over $109 million of that $211.7 million, more than half or 51.6%, leaving the rest of the operators in its vapors. Despite coming a distant second, DraftKings posted a personal monthly revenue record all-time of nearly $71 million. Caesars cleaned up with a reported $13.6 million in revenues while BetMGM crossed the $10 million plateau.
Although New York narrowly missed reaching the $2 billion handle mark for the fourth consecutive month with $1.956 billion in accepted wagers, it was up 9.3% from last January. New York’s mobile operators reported the following handle and revenues for January 2024.
- FanDuel: $867.06 million handle, $109.17 million in revenue.
- DraftKings: $664.79 million handle, $70.97 million in revenue.
- Caesars: $198.0 million handle, $13.65 million in revenue.
- BetMGM: $118.85 million handle, $10.0 million in revenue.
- BetRivers: $50.13 million handle, $3.54 million in revenue.
- PointsBet: $31.70 million handle, $2.63 million in revenue.
- Bally Bet: $9.39 million handle, $425,689 in revenue.
- WynnBet: $8.75 million handle, $358,497 in revenue.
- Resorts WorldBet: $6.92 million handle, $752,478 in revenue.
It should also be noted that Penn Entertainment, operator of the newly-formed and wildly popular ESPNBET, recently bought WynnBet’s New York licensing rights and is expected to launch in the latter part of this year.
As for now, iGaming is not on the legislative table but should New York decide to allow online casino gambling, the revenues for both the operators and the state’s tax collectors would skyrocket. However, Governor Kathy Hochul did not include an iGaming provision in her 2025 executive budget.
