NY's Mobile Sports Betting Racks Up $542M In Revenue

NEW YORK — Mobile sports betting has proven to be a big earner for New York.

In under 10 months, since mobile sports gambling became available in the state, $542 million in taxes has been collected, "far surpassing" every other state in the nation, Gov. Kathy Hochul said Wednesday. An additional $200 million in licensing fees has also been collected, generating a total of more than $740 million in revenue, most of it to be used for education. That far outperforms every other state in the nation, including those that have been accepting mobile sports wagers for several years, Hochul said.

"By bringing sports wagering to New York, we have not only opened the door to responsible entertainment for millions of sports fans, but we have also brought in significant revenue to support schools, as well as youth sports, while implementing important safeguards to help those who need it," Hochul said. "I'm proud of the work that has been done to secure our state's top position in mobile sports wagering, and I am excited to continue the trend as we secure hundreds of millions of dollars to support programs that will improve the lives of New Yorkers."

New York set a record of $73 million in mobile sports wagering tax revenue in September, the most generated by any state to date, breaking its own record of $63 million set in January, Hochul said. According to reports, the highest monthly mobile sports wagering tax revenue generated outside of New York is Pennsylvania in November 2021 at $19 million, Hochul said.

New York State Office of Addiction Services and Supports Commissioner Chinazo Cunningham weighed in: "OASAS stands ready with services and supports for New Yorkers struggling with problem gambling. This additional revenue from mobile sports wagering will allow OASAS to expand important prevention, treatment, harm reduction and recovery services across the state."

According to GeoComply, a software firm used by sports books to ensure geolocation requirements, more than 11.3 million unique player accounts have been created since January, conducting nearly 985 million transactions, Hochul said.

Looking at a breakdown of wagers by sport since Jan. 8, the MLB has taken in $2.6 billion and the NBA, with $2.5 billion. The NFL has taken in $1.3 billion over 10 regular season weeks and the 2022 playoffs. College football has taken in $406 million, which includes the 2022 bowl games and the current regular season to date. A final statistic to accentuate the popularity of pro football mobile sports wagering in New York shows the average number of transactions on Sundays since the start of the 2022 season at 5.7 million, Hochul said.

Through the week ending Oct. 30, the mobile sports wagering handle is $13 billion, with net revenue to education of $527 million. Looking ahead to 2023 and annually thereafter, revenues from mobile sports wagering are to be distributed as follows: $5 million to fund sports programs for underserved youths, $6 million to fund problem gambling education and treatment, and the remaining majority to education aid.

Under a proposal first made by former Gov. Andrew Cuomo in 2021, the state Gaming Commission would issue a request for proposals to select and license a sports operator or platform to offer mobile sports wagering. The operator or platform would need to have a partnership with one of the existing licensed casinos; the commission would also require any entity operating mobile wagering apps to include safeguards against abuse and addiction, he said.

In 2018, the U.S. Supreme Court overturned a federal law prohibiting most states from authorizing sports wagering. Sports wagering is now legal online in 14 states, including New Jersey and Pennsylvania, while, until January, it had only been legal in New York at the four upstate gaming facilities and Native American gaming facilities.

A study found that nearly 20 percent of New Jersey's sports wagering revenue comes from New York residents, meaning millions of dollars in lost tax revenue, Cuomo said at the time.