The first 15 days of May show mobile NY sports betting handle slowing as expected, but tax revenue is still flowing.
New York’s eight mobile sportsbook operators turned in their weakest betting period yet with $286.2 million bet for the week ending May 15. Those mobile NY sportsbooks combined for a hold of 10.8%, though, which led to $31 million in sports betting revenue.
Even with fewer betting opportunities, New York’s operators are still paying plenty in taxes because of the 51% rate with no promo deductions. Sportsbooks are on the hook for $34.8 million in taxes through the first 15 days.
Already $250M in mobile NY sports betting taxes
New York should soon overtake Pennsylvania as the top US sports betting jurisdiction by taxes paid.
Operators already paid $216.7 million in taxes through April. The pending $34.8 million for May brings the total to $251.5 million in taxes since mobile launched Jan. 8.
Compare that to the $253 million in 3.5 years for Pennsylvania sportsbooks. Considering Pennsylvania allows for promo deductions, that torch-passing could happen with the May reports.
How much of that is FanDuel?
FanDuel is to thank for 40.7% of the taxes paid so far through April, and its tax share in May so far is even higher at 56.2%.
|Resorts World Bet||$10,727,313||$853,946||8.0%||$435,512|
FanDuel is New York’s preferred operator by handle, with the brand taking 37.9% of all dollars bet through since launch through April. That handle share, too, grew through the first 15 days of May.
|Resorts World Bet||$2,886,125||$125,177||4.3%||$63,840|
FanDuel is keeping its foot on the gas when it comes to acquiring new players so this growth is not exactly a surprise, even with Flutter CEO Peter Jackson saying the brand slightly pulled back in New York.
Is NY sports betting tax pace sustainable?
With 19 weeks completed, sportsbooks are averaging $13.2 million in taxes paid each week. That equates to more than $688 million on an annual basis.
That total is not something anyone should expect to hit in year one for New York. Even with four full months of NFL betting and college football betting to close the year, June, July, and August are notoriously slow sports betting months that could drag down that weekly average significantly.
Sportsbooks are also already complaining about the 51% tax rate and are no longer spending like they did when the market launched. BetMGM called the tax rate unsustainable while Caesars admitted it started out heavy in New York.