The state of New York is already establishing itself as the epicenter of the US sports betting market as it generated $125m in revenue in January 2022 alone, according to PlayNY which tracks the New York gaming market.
Data from the New York State Gaming Commission displayed that, within its first 24 days of operations, the state’s online and retail sportsbooks accepted $1.69bn in wagers in January, including $1.67bn through online books. Online sportsbooks received an average of $69.6m per day over the 24 days following the January 8 launch.
“There’s never been anything in US sports betting like New York’s first month,” said Mike Mazzeo, lead analyst for PlayNY.com.
“Launching ahead of the NFL playoffs was no doubt a boost for sportsbooks. But more importantly, the rollout of online sports betting unleashed a tidal wave of pent-up demand in New York.”
The standout inaugural month of mobile sports betting in January saw New York generate $124.1m in gross gaming revenue, the largest month recorded in US history. As a result of the 51% tax rate, this yielded $63.3m in state taxes, more than almost every other legal sports betting state combined in the entirety of 2021.
“You run out of superlatives to describe what happened in New York last month,” said Eric Ramsey, an analyst for the PlayUSA.com Network, which includes PlayNY.com.
“There might be some moderation over the next few months as bettors get used to sports betting and the football season closes. But this market is still in its infancy, and the ceiling for New York looks to be even higher than initially thought.”
Breaking down January’s volume by operator, Caesar’s Entertainment was the big winners, generating $59m in revenue from $627.4m in wagers handled during the month.
FanDuel was the second-highest performing sportsbook, with $517.4m in wagers, which produced $28.1m in gross revenue.
The rest of the bets were handled by DraftKings, BetMGM, BetRivers and PointsBet, with further entrants expected in the market. WynnBet has since joined the online marketplace, whilst Resorts World is expected to come in days. Bally Bet’s launch is anticipated in April.
“Caesars and FanDuel won the month, and it has proven difficult to dislodge operators once they are a market leader,” Mazzeo concluded.
“But it’s important to remember that New York’s market is still forming, even if it appears it will mature more quickly than most any other market.”