New York has become the first state to earn more than $1 billion in tax revenue from the online sports betting industry.
The Empire State only rolled out a legal sports betting market in January 2022, but it has already raked in $1.005 billion in taxes.
States such as New Jersey and Pennsylvania, which have had legal sports betting for many years, are nowhere near that mark.
It is partially down to the sheer size of the New York sports wagering market, but it also reflects the 51% tax rate that the state imposes.
By contrast, Pennsylvania – which collects a 36% tax – has earned $427.6 million since 2019, while New Jersey’s 13% tax rate has generated $368.4 million for the Garden State since 2018.
Sportsbooks have lobbied New York to reduce its tax rate, arguing that it hinders their chances of earning a profit, but regulators have thus far refused to budge.
FanDuel is currently the clear market leader in the Empire State, with a 43% share of wagers placed and a 51% share of the revenue earned. In the week to May 31, 2023, it became the first sportsbook to exceed $1 billion in revenue in New York.
DraftKings is in second-place, with a 31% share of the handle and a 29% share of the revenue, leaving it ahead of Caesars Sportsbook and BetMGM.
