New York sportsbooks have exceeded $10 billion in online sports betting handle in less than eight months.
NY online sportsbooks handled $194.5 million in bets during the week from Aug. 22-28, putting the Empire State at $10.1 billion for the year.
Overall, NY sportsbooks have generated $766.4 million in gross gaming revenue from online sports betting, which has led to a record $390.9 million in tax revenue.
NFL season should provide boost
NY exceeded $1 billion in online sports betting handle in each of its first six months since launch (Jan. 8). But a lull in the annual sports betting handle has led to back-to-back months under the $1 billion mark.
That will change, however, now that the 2022 NFL regular season is set to kick off on Sept. 8. It will be the first full NFL season for NY bettors, and should lead to significant gains in handle and revenue. The Buffalo Bills are the favorites to win the Super Bowl.
“I love the position we’re in, but that’s not to say we’re not going to tinker with or at least discuss additional operators, tax rate, whatever it may be, even promotional items,” state Sen. Joe Addabbo told Legal Sports Report earlier this week. “I think the low-hanging fruit is how we treat promotional items, but this is a great discussion for an already great product.
“I don’t have to say it because others have said it: NY has solidified its place as the capital of online sports betting in the nation, which is great. But it’s a question of sustainability.”
What’s next for NY
Heading into next year’s legislative session, discussions will center on the state’s 51% tax rate. Operators are losing money, though the state’s position is that they knew exactly what the rate was when they decided to take the market access. And NY is also making a ton of tax revenue, so any changes would have to guarantee that the numbers stay where they are, if not go higher. Potential expansion of operators will also be discussed.
Addabbo and Assemblymember Gary Pretlow will also consider adding markets, such as individual player award futures (MVP, Cy Young, Heisman). Addabbo would also like to separate a bill that didn’t pass last year into two, one for stadium kiosks and one for fixed-odds horse racing.
The state’s in-state college sports betting ban should also merit discussion. Any prohibited wagers give bettors the opportunity to wager elsewhere, as in New Jersey, Pennsylvania, with their local bookie or offshore.