Sep 26, 2021; East Rutherford, New Jersey, USA; New York Giants running back Saquon Barkley (26) hands the game ball to a fan after scoring a rushing touchdown during the second half against the Atlanta Falcons at MetLife Stadium. Mandatory Credit: Vincent Carchietta-USA TODAY Sports
- Revenue from online New York sports betting will benefit residents across the Empire State
- The lack of mobile wagering has cost New York hundreds of millions in tax revenue
- Mobile New York sports betting is expected to launch in January 2022
The launch of online New York sports betting is fast approaching, and the tax revenue generated from this emerging industry will benefit numerous sectors across the Empire State.
As a state that has only offered in-person sports betting at retail sportsbooks since 2019, New York has missed out on millions of dollars in crucial tax revenue. Once mobile NY wagering gets underway, tax revenue from sports betting will go through the roof, providing crucial funding to a variety of great causes.
Here’s how online sports betting revenue will help New Yorkers.
NY Sports Betting Tax Revenue Will Benefit Education, Youth Sports, and Other Causes
The New York State Gaming Commission awarded 10-year sports betting licenses to nine different betting sites back in November. Each of these NY betting sites agreed to a 51% tax rate on their profits, a massive figure matched only by New Hampshire’s gambling tax of 51%.
According to the National Conference of State Legislatures, New York sports betting tax revenue currently goes towards statewide education programs, local municipality and county governments, and property tax relief for New Yorkers.
Revenue from sports bettors wagering in-person at retail sportsbooks is drastically lower than the totals mobile wagering can pull in, so these programs will only benefit from a huge increase in tax revenue.
New Jersey and Nevada flexing their sports betting handle muscles….what will New York have to say when they launch online sports betting? https://t.co/D76B837QW8
— RLinnehanXL (@RLinnehanXl) November 30, 2021
Once online New York sports betting launches, $6 million each year will go towards the commercial gaming fund for problem-gaming education and treatment. In addition to this program, another $6 million every year will go to the general fund for statewide youth sports and education grant programs through the state’s Office of Children and Family Services.
As per a gaming market study conducted by the Spectrum Gaming Group in January 2021, the state predicts annual sports betting tax revenue will reach $493 million by 2025. These funds will benefit the groups mentioned above and countless other New Yorkers in a variety of ways for years to come.
Retail-Only Sports Betting Has Cost New York Millions in Revenue Dollars
The benefits of New York sports betting revenue have not realized the full potential, as retail sports betting simply does not draw the same betting volume that’s seen with mobile wagering.
NJ vs. NY Sports Betting Revenue
|State||Month||Total Sports Betting Revenue|
|New Jersey||October 2021||$84,152,035|
|New York||October 2021||$1,718,614|
Looking to figures pulled in from New Jersey sports betting revenue paints a clear picture that New York has lost out on hundreds of millions of dollars. The Garden State has recently seen back-to-back months where they collected over $1 billion in sports wagers, and a large percentage of these figures is coming from New Yorkers crossing the Hudson River.
Once online New York sports betting goes live, residents in the Empire State will no longer need to drive into New Jersey to enjoy mobile wagering. Subsequently, New Jersey sports betting revenue will dip, while a correlated rise in handle will be seen in the Empire State.
Mobile NY Sports Betting Is Almost Ready to Go-Live Across the Empire State
New Yorkers are eagerly waiting to hear about an official launch date for online sports betting, but all indications point toward a go-live date sometime in January 2022.
New York State has officially Passed the Final Stage in the Regulatory Process of Legalizing Online Sports Betting.
The expectation is that the launch will be in early 2022 with the hope and possibility of it launching sooner
— Dante J Furco (@D_Furcs) December 1, 2021
There’s still a possibility mobile NY wagering gets underway before the end of the year. Stay tuned to Sports Betting Dime for all the latest news and analysis surrounding online sports betting in the Empire State.
A sports fanatic and strategic wordsmith, Mitchell has been writing gaming content for over seven years. As sports betting emerges in markets across the globe, he’s ready to journey alongside those who haven’t wagered before with informative articles and comprehensive how-to guides.