The New York gaming market could reach new heights with the inclusion of online casinos.
Bet on NY, a group backed by Sports Betting Alliance, believes that the authorization of online casino gaming in New York could generate up to $1 billion in additional tax revenue annually for the Empire State. An online gaming bill, which could include both iGaming and iLottery, would also create new employment opportunities and ensure consumer protections while also driving revenue.
The revenue, which would add to New York’s already robust gaming market, could be allocated toward education. In 2022, the state’s sports betting operators posted $692.8 million in tax revenue. IGaming could also help improve New York’s budget deficit, which is expected to reach $4.3 billion in 2024. State Comptroller Thomas DiNapoli estimates a $8 billion deficit in 2025.
New York is poised to host a strong iGaming market as neighboring states already reap its benefits. Those states with iGaming include Connecticut, Pennsylvania, and New Jersey.
America’s largest gaming market
The desire to regulate online casinos in New York comes amid strong sports betting results.
Earlier this month, the New York State Gaming Commission announced that sports betting operators in the Empire State reported a total handle of $2.04 billion for December 2023 — the second-highest handle in state history. The results last December were slightly behind November’s record handle, which saw operators take $2.1 billion worth of sports wagers.
New York operators had a 9.2% hold in December 2023 compared to 7.1% for the month prior.
The strong handle and improved hold in New York last month helped operators grow revenue. New York, which has nine licensed online sportsbooks, saw its operators generate $188.3 million in revenue in December from sports betting — a 32.8% increase year-over-year. The Empire State’s new record for revenue in December 2023 was also a 13.2% uptick compared to the month prior.
New York’s sportsbooks include FanDuel and DraftKings — two brands with online casino offerings. FanDuel posted a $834.5 million handle in December, while DraftKings took $773.4 million in bets. Caesars, which also offers iGaming, rounded out the top three at $201.9 million.
