The combination of high population and high tax rate means NY sports betting is still churning out dollars for education despite the seasonal schedule slowdown.
The eight mobile New York sportsbooks generated $56 million dollars in tax revenue for May 2022. That is 51% of the $109.8 million in revenue kept by the books on $1.26 billion bet during the month.
That total handle is the lowest for any month since the industry launched Jan. 8, but it was the third-best month in terms of taxes.
FanDuel again NY sports betting leader
The dominance FanDuel Sportsbook has in the NY betting market does not look like it will disappear any time soon.
FanDuel took $552.6 million in bets during May. That is nearly $240 million more than second-place DraftKings.
FanDuel finished with 43.7% of total online handle share and an even larger 58.2% share of sports betting revenue.
NY leads US in betting tax revenue
Unless Pennsylvania sportsbooks had a near-record tax month in May, New York will be the new leader in terms of taxes from US sports betting since the end of PASPA in May 2018.
Sports betting has brought in $274.4 million in taxes for New York through May. The vast majority of those taxes – $272.7 million – is from the mobile market that launched Jan. 8.
Pennsylvania, meanwhile, sits at $253 million through April. That is despite Pennsylvania’s 36% tax rate, which is significantly diluted by allowing operators to deduct promo dollars.
Which books to thank for NY tax revenue so far
FanDuel, DraftKings and Caesars battling for market share when online betting launched in January has a lot to do with the state’s early fiscal success.
The three operators account for 90.5% of the $276 million in taxes reported through the week of June 5.
Caesars exploded out of the gate with an offer worth up to $3,300 in promo credits, though that ended before the month was up. That launch offer contributed to revenue losses of $53 million and a negative EBITDA of $554 million for Caesars’ digital segment in the first quarter.
BetRivers, the only other operator live at launch in New York, took a much slower approach to the market. Rush Street Interactive‘s sports betting brand has paid just $4.4 million in taxes so far, or 1.6% of the total through June 5.
