New York mobile sports betting operators generated $665.9m in revenue throughout 2022 as the state enjoyed its first full year of legalized online sports betting.
As data published by the New York Gaming Commission detailed, sportsbook operators handled $16.2bn during the first 12 months of the legalized online sports betting market, making it one of the US’ largest markets.
Operators took $1.4bn in GGR from this handle following the deduction of player winnings and promotional credit and other expenses prior to tax.
The Empire State’s mobile sports betting market opened on Jan 8, 2022, when Caesars Sportsbook, DraftKings, FanDuel and Rush Street Interactive all took their platforms live.
They were soon followed by the rest of the licensed operators – BetMGM, Bally’s, Wynn, Resorts World and PointsBet.
As anticipated, New York began the year in emphatic fashion, breaking US records for the highest betting volume number in a single month after $1.6bn was wagered at its sportsbooks between Jan 8 and Jan 30.
This continued throughout the year as the state established itself as one of the most prominent markets for sports betting.
However, concerns over the high 51% tax rate led to fears of slow growth, with BetMGM labeling it as ‘irrational’ as the company noted that it would limit its presence in the market.
Despite taking over $1.4bn in GGR during 2022, operators only took revenues of $665.9m after contributing towards their tax duties.
In contrast, the operators’ tax continued $693.1m towards educational benefits across the state.
Whilst New York has set several US sports betting records for performance, it remains unclear whether the tax rate would be prohibitively high to stunt growth. Whilst some projections claim that NY could deliver $900m in revenue per year, there are fears that high tax rates can prevent growth.
An SBC/VIXIO Gambling Compliance survey conducted in June revealed that 21% of stakeholders believe that high tax rates and license fees as the policy issue most likely to affect US market expansion in future years, while 12-14% believe it will result in a slower rollout of igaming.
Almost 28% of participants also selected the spread of New York’s high-tax model to other states as the most concerning from a list of hypothetical regulatory events.
Breaking down handle per operator, FanDuel is the clear market leader during the first year of New York’s sports betting market, handling $6.52bn during the year. The next top three operators were DraftKings ($4.53bn), Caesars Sportsbook ($2.8bn), and BetMGM ($1.34bn).