A mere thirty days after mobile sports betting became legal in New York, $2 billion in wagers were placed and $70 million in tax revenue was generated. State officials along with the governor are stunned by the unprecedented success and are highly satisfied with the results to this point.
NY Governor Hochul explained in a statement that NY mobile sports betting can be an “Economic Engine” for the Empire State. She also stated that the tax revenue accrued from the bettors will be used to fund schooling, youth sports, and ironically, the treatment of gambling disorders.
Tax on Earnings
The $70 million in tax revenue was generated due not only to the steep 51% tax rate on sports betting revenue in New York, but also the sheer amount of bettors who partook in online betting. As mentioned previously, the tax revenue is earmarked by law and the money can only be used in certain areas.
Popular Sports Books
Caesar’s Sportsbook was the most popular in the Empire State, collecting 47.9 % of betting revenue. They flooded the scene with advertisements all around the state, and also took 37.2 % of every dollar bet in New York. That’s approximately $628 million in revenue for Caesar’s.
DraftKings also started gaining momentum in New York, accounting for 24% of betting revenue, and 22% of every dollar betted. These two books were certainly the most popular during New York’s first month.
New Jersey Status
With advertisements to bet in New York being seen everywhere, there was a growing concern that New Jersey would not be able to endure the promotional environment surrounding New York. They were able to do just fine, hitting a monthly record of dollars bet at $1.3 billion.
Wrap-Up
Although only one month of mobile betting is under the belt, it is still revealing that there is a lot of potential remaining to be tapped. There is optimism that the numbers will continue to grow, ultimately giving the state more tax revenue than it has ever seen.
It is becoming clear that betting from a mobile device is a trend sweeping the country. Not one brick-and-mortar casino came within 25% of any mobile app’s earnings. Mobile betting is a rocket ship right now and New York is ready for takeoff.
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