The New York sports betting industry is a staple in our Pay Per Head blog. Years ago, it was in the news quite frequently due to the debates on legal measures needed to legalize sports betting. Then, the Covid pandemic happened, and the state needed funds. Thus, in the bill on the state’ s financial plans, sports betting was included. Specifically, online sports betting New York. While retail betting was available, it was not accessible, and not generating the numbers that the state needs. Offering online sports betting in New York was a practical decision, and apparently, a billion-dollar decision in favor of the state.
Fast forward to January 8, 2022. The first day that people can sign up with sportsbooks that use gambling software. Millions of people placed wagers. Pretty soon, all of the online sportsbooks in the state reported a combined handle reaching a billion dollars.
Since its launch, its very common to see sportsbooks take in hundreds of millions in betting handle in each week. What other betting markets across the country as their monthly handle, New York was posting in their weekly reports. That’s how large the betting market is. When learning how to open a sportsbook, gauging market interest is important, and New York was spot on in its decision to allow online wagering.
Online Sports Betting in New York Hits $1 Billion in Taxes
As a bookie, you can earn money from your sportsbook. The government also stands to earn from sports betting, in quite a few ways. For one, sportsbooks need to pay a licensing fee to operate in the state. Next, the state collects a tax on the revenue of sportsbooks. There are also more indirect ways that sportsbooks contribute to the local economy, like employment and such.
And in New York, sportsbooks have given a total of $1.005 billion in tax revenue for online sports betting. This covers the date from its launch back in January 2022, to May 31, 2023. For over a year and four months, New York earned an additional billion in funds just from online wagering. 98% of this goes to educational programs.
But the steep number is not just because of the sheer volume of wagers that online sportsbooks in New York get. While they are the largest betting market in the country, they also have one of the steepest tax rates. In fact, the tax rate on sports betting is 51% of the revenue.
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