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New York Sports Betting Revenue – The Latest Totals
New York betting apps have reported another solid month, as the total adjusted gross revenue for the state in 2023 surpassed the $1-billion mark. Former Governor Andrew Cuomo projected that New York would gain at least $500 million per year in tax revenue at the current 51% rate, with the state on pace to surpass $800 million by year’s end.
New York Sports Betting Revenue: August by the Numbers
New York’s total sports betting handle was over $1.11 billion in August, a 15% increase from July when the state handled just over $962 million in bets. It was the first month New York’s total handle was less than $1 billion since August last year.
However, sports betting revenue decreased to $98.5 million in August, down 6% from July’s $105.1 million. August 2022 was also the last month New York bookmakers generated less than $100 million in revenue. The state collected $50.2 million in taxes from sports betting operators in August.
DraftKings and FanDuel Continue to Dominate in NY
DraftKings and FanDuel have been battling for the biggest online sports betting handle for months, with DraftKings retaking the top spot in August with $446.8 million in online bets accepted or 40% of the total handle for the month. It was the first time since June that DraftKings topped its rival.
FanDuel was the market leader in sports betting handle in July and accepted 37% of all sports wagers in the state last month, with $409.1 million in online bets placed. However, FanDuel produced more revenue than DraftKings in August at $41.9 million versus its rival’s $35.4 million. The two sports betting giants had almost equal revenue numbers in July of $41.09 million to $41.08 million, respectively.
The only other online sportsbook with more than $100 million in monthly handle in August was Caesars, with $120 million in bets yielding $9.5 million in revenue.
Outlook for NY Betting for the Rest of 2023
Online sports betting in New York has grown substantially since first launching at the start of 2022. So far, the state has received over $1 billion in tax revenue from sports betting, with the weekly gross revenue consistently above $149.7 million since the beginning. Experts predict the state will break the $2 billion annual milestone in 2024.
Chairman of the Senate Committee on Racing, Gaming, and Wagering, Senator Joseph P. Addabbo, Jr., has also been pushing to legalize online casino wagering, with a plan already established that could make it a reality soon.
As the online market continues to grow, New York sports betting will be a lucrative revenue source for the state. However, the $1 billion in tax revenue also highlights the need for uniform tax rates throughout the country to ensure providers are on a level playing field and can afford to remain in operation. Besides paying 51% tax on sports betting revenue, providers also paid $25 million for a New York online sports betting license.