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New York online sports betting generated $862 million for the state in 2023, its second year of operation, according to Gov. Kathy Hochul.
When added to $693 million and $200 million in licensing fees collected in 2022, the Empire State has taken in $1.75 billion. Tax revenue from online sports betting finances:
- Education
- Sports programs for underserved youths
- Problem Gambling Prevention Treatment and Recovery Services
Gov. Andrew Cuomo signed a bill allowing online sports betting in New York in April 2021. The first bets were taken exactly two years ago, in January 2022, after Gov. Cuomo approved a limited-operator, government-bid online sports betting model. Since then, New York has become one of the largest markets in the US.
For now, online casinos in New York remain illegal, while some states — including neighboring New Jersey, Pennsylvania and Connecticut — offer them.
New York State ranks third in overall gambling handle
According to the total amount of bets placed, New York ranks third in the nation, after New Jersey and Nevada.
Since the U.S. Supreme Court overturned the Professional and Amateur Sports Protection Act (PASPA) in May of 2018, New York State ranks third in overall handle (total bets) among states. Here’s a breakdown:
- New Jersey: $44.2 billion handle
- Nevada: $36 billion in total bets
- New York: $35.7 billion in bets placed
While New Jersey and Nevada have offered sports betting for 5.5 years and 11 years, respectively, New York has offered it for just two. During that time, New York State had nine of the top 10 all-time US monthly sports betting handles, with New Jersey occupying ninth place for November 2023.
The release from New York further reveals that the top four sports that have accounted for more than $11.1 billion in online sports wagering handle were:
- NBA: $3,679,461,779
- MLB: $3,285,822,760
- NFL: $2,994,128,825
- NCAAF: $1,114,178,066
In a news article posted on Hochul’s website, she said:
“Over the last two years, New York is the clear leader in providing responsible entertainment for millions while bringing in record-shattering revenue for education, youth sports, and problem gambling prevention.
I look forward to this third year of our successful gaming policies that deliver top tier mobile sports wagering experiences. We will continue to generate revenue that will enrich the lives of New Yorkers, all with important safeguards in place to help those who need it.”
Online casino legalization might be down the road, but not this year
Sen. Joseph Addabbo has been a long-time supporter of online gambling expansion in New York. Earlier this month, he introduced a new bill to legalize online casinos (iGaming), internet lottery, and a possible horse race betting expansion in the state.
Addabbo acknowledged he had heard that Hochul wasn’t interested in introducing online casinos this year. She would first wait for the state to finish awarding three licenses for downstate casinos she signed off about a year and a half ago.
Because downstate casino licensing appears, it doesn’t look like the state will finish the process until 2025. Resolving local zoning regulations remains the biggest hurdle, as it could slow downtown licenses for a few years.
