Gov. Kathy Hochul’s fiscal year 2024 executive budget projections for online NY sports betting tax revenue are ambitious but perhaps not far-fetched given January’s returns.
Hochul’s office projected the Empire State to bring in $896 million in tax revenue from online NY sports betting for FY2024. That equates to around $75 million per month.
Yet in January, NY online sportsbooks set US-monthly records across the board. Those marks include handle ($1.79 billion), total gross gaming revenue ($149.4 million) and tax revenue ($76.2 million.)
Consistent NY tax revenue
New York also surpassed $70 million in online sports betting tax revenue in each of the last five months.
Sportsbooks complained to state legislatures about the 51% tax rate (which they negotiated and agreed to), while threatening worse odds. Yet the first-year returns likely will not motivate legislators to pass a reduction, let alone finding a promotional deduction middle ground.
NY legislators also are looking to incorporate awards as part of an expanded betting menu to generate additional action.
NY Super Bowl handle
It is worth noting that the weekly online sports betting handle of $331.3 million from Jan. 30-Feb. 5 was the lowest since Oct. 16. Granted, there was no NFL games to bet on that week.
LSR projects NY to come in at $152 million in Super Bowl handle on Feb. 12, second only to Nevada.
New York did not release its Super Bowl handle figure last year, though LSR recently learned it was $144.5 million, including $143 million via online handle.
Nevada came in at an all-time, US-best $179.8 million in 2022.
NY sports betting RG data
The NY Council on Problem Gambling has called for increased funding, and 24/7 phone assistance services as the amount of gaming options in the state continues to rise.
The NYS Office Addiction Services and Supports reported that there were 2,402 contacts (calls/texts) to the Hopeline in 2022, the first year of legal online sports betting.
While the number of contacts in 2022 was higher than in 2021 (1,899 contacts) and 2020 (1,687 contacts), it was lower than in 2019 (2,977 contacts.)
OASAS notes that “these numbers do not represent individuals, as someone may have contacted the Hopeline more than once during a given time period.”
