Everyone knew online sports betting in New York would become the biggest industry in the country. But this quick? Not a chance.
Yet here sits the Empire State, 71 weeks into legal online sports betting, already challenging the likes of New Jersey and Nevada for highest handle, closing in on New Jersey for highest revenue, and the far-and-away No. 1 in state tax revenue.
On Friday, the New York State Gaming Commission released NY sports betting totals for the week ending May 14. The totals do not turn heads ($318 million in handle, the state’s lowest since September), but the significance does.
Last week, New York crossed $2 billion in lifetime gross gaming revenue. This a week after the Empire State surpassed $1 billion in state tax revenue since launching in January 2022.
NY sports betting tops $1 billion in state tax revenue…
It took just 71 weeks to reach these historic NY sports betting revenue totals. For state lawmakers, only one total matters most.
Recall that state officials initially expected New York to reach $500 million in annual tax revenue by fiscal year 2024. A lofty goal, to be sure. Fast-forward to May 2023, when the country featured 29 markets with legal and regulated sports betting.
Yet only one has crossed $1 billion in state tax revenue. In fact, only one has the $500 million mark in its rearview mirror: New York.
At over $1.02 billion, New York boasts a total 138% larger than second-place Pennsylvania, which has reported $427.6 million through April.
Obviously, New York benefits from a steep 51% tax rate. Still, it takes a village to reach this mark. And NY sportsbooks have gotten that and more.
… and $2 billion in gross gaming revenue
The hunger for regulated sports betting in New York was not lost on anyone as legislation was introduced to legalize the industry. The betting public has continued to prove that correct.
In just over 15 months, New York sportsbooks saw gross gaming revenue top $2 billion. As a result, the Empire State joins New Jersey, which launched sports betting in summer 2018, as the only markets to reach that tier.
For perspective, while New Jersey currently ranks first in revenue with just under $2.7 billion, it took the Garden State 51 months – a little over four years – to top $2 billion.
Save a seat for NY in $25 billion handle club
As summer nears, New York sports betting has yet another landmark milestone in its sights.
Since the US Supreme Court repealed PASPA in 2018 to clear the way for state-regulated sports betting, only two markets have topped $25 billion in handle.
New Jersey accomplished the feat 45 months in, while Nevada joined NJ four months later.
Again, here sits New York, at $23.4 billion, closing in on that elite crowd. All told, it’s likely NY sports betting hits $25 billion by June.