New York’s sports betting continues to reach new heights as the Empire State can now be dubbed the sports betting capital of the world.
Sportsbook operators combined to bring in a handle of $3.52 billion that resulted in $121.2 million in state taxes.
Sportsbooks that Accumulated Over a Billion Dollars Since Launch
When New York’s sports betting market launched on January 8th, four of the nine operators that received approved licenses were able to launch. Since that day, four other online providers were able to accept wagers.
There is still one sportsbook operator that hasn’t launched its products and services to the market as of late. BallyBet is set to be available at some point during the first half of the year/ Mobile sports betting has been the go-to for many jurisdictions throughout the industry, including New York.
According to the New York State Gaming Commission, the numbers that were released on Friday show that two of the four sportsbooks that accepted wagers each have a handle that surpasses a billion dollars. Caesars had the early lead because of its record-breaking promotion for new users.
Caesars has brought in a handle that has exceeded $1 billion since the market’s launch. This includes the span where the sportsbook brought in a total of $91.8 million from February 28th to March 6th.
FanDuel has become more popular as time went by. The sportsbook has accumulated a handle of $1.2 billion. During the same span of February 28th to March 6th, FanDuel has accepted $145.6 million in wagers through the platform.
Another competitor DraftKings is closing in on reaching the billion-dollar handle. The current handle is at $849.5 million and should be able to reach the billion mark shortly.
More Sportsbooks Looking to Enter the State
Sportsbooks that operate in the state are subject to the highest tax rate based on revenue, as it is currently at 51 percent. Assemblyman Gary Pretlow and Sen. Joe Addabbo Jr. are advocates of bringing in more sportsbooks to the state but not for the cost of losing tax dollars.
Pretlow’s A 8658 and Addabbo’s S 8471 would bring more sportsbooks to the state. The bills’ breakdown of what could take place if more companies try to enter the state in the future.
No more than 14 providers would be operating by January 31st, 2023, and the number could increase to 16 by January 31st, 2024. This would lead to a lower tax rate and would have an effect on how much tax dollars the state would be able to bring in every month.
Lower Tax Rate May Be in Store For Sportsbook Operators
Allowing more sportsbooks to conduct business in the busiest market in the industry would most likely bring down the number of tax dollars the state would generate. Providers that receive approved licenses will likely have to pay $25 million, which the other nine sportsbooks paid.
The licensing fee to get these licenses would cost $50 million. The astronautical fees would even make up for what the state will be missing in regards to taxes once more providers are added to the market. Adding seven more sportsbooks would mean that the 16 provers would bring in $525 million due to the licensing fees if each new operator pays the $75 million.
Some of these new providers may be trying for a second or third time as some companies failed to secure a bid during the selection process. Having 14 providers would bring the tax rate down to 35 percent, and if 16 enter by 2024, the tax rate would drop to 25 percent.