Record-Breaking Success Generates Over $70 Million In Tax Revenue with Nearly All Directed to Education; Youth Sports and Problem Gambling Also Benefiting
Governor Kathy Hochu ltoday announced the successful launch of mobile sports wagering in New York State, with nearly $2 billion in wagers taken during the first 30 days of operation. This record-breaking success, more than any other state has ever reported, will generate more than $70 million in tax revenue for New York State, providing funds to be allocated toward programs that support education, youth sports, and more.
"Over the past month, we've seen how mobile sports wagering can be an economic engine for New York, driving significant funding to our schools, youth sports, and so much more," Governor Hochul said. "As this new industry continues to grow, New York will make sure we have the resources and guidelines in place to make it a success for all."
Mobile sports wagering began in New York State on January 8, 2022; since then, more than $1.98 billion in wagers has been taken in New York. The total Gross Gaming Revenue was over $138 million and, at a 51% tax rate for the State, these wagers brought more than $70.6 million in tax revenue. According to State law, tax revenue generated by the mobile sports wagering industry is required to go toward elementary and secondary education, grants for youth sports programming, property tax relief, and problem gambling prevention, treatment and recovery services.
Last year, Governor Hochul directed the New York State Gaming Commission to prepare for the launch of mobile sports wagering, which had previously been authorized by the legislature, by engaging licensed companies to complete the regulatory requirements needed to begin operations in New York State. This approach will keep New York bettors in New York, rather than having State residents travel to neighboring states to wager.
Gaming Commission Executive Director Robert Williams said, "With Governor Hochul kicking off mobile sports wagering on January 8th, there is no doubt there is strong interest in online sports betting in the Empire State, which has just set a national record for monthly tax revenue."
OASAS Commissioner Chinazo Cunningham said, "OASAS is committed to ensuring that individuals and families in need of assistance for problem gambling have access to all available supports and resources in our State. The revenue from the launch of mobile sports gambling will provide much needed financial support to problem gambling prevention, treatment and recovery services."
On January 6, 2022 the Commission authorized four platform providers and operators - Caesars, DraftKings, FanDuel, and Rush Street Interactive - to commence operations effective January 8, 2022. Since that time, 3 more operators have commenced operations - Bet MGM, Points Bet and Wynn Interactive. All major operators in the United States were included in the submitted bids with 8 platform providers and 9 operators selected.
According to GeoComply, a software firm used by sports books to ensure geolocation requirements, more than 1.76 million unique player accounts were utilized for over 187 million transactions. Geolocation is performed on a continuous basis to ensure patrons are located within the boundaries of New York state when placing their wagers.
For FY 2022 (January 8, 2022 - March 31, 2022), 98% of the state tax imposed on mobile sports wagering will fund education, 1% of the state tax will fund sports programs for underserved youth and 1% of the state tax will fund problem gambling education and treatment. All of the license fees revenue is directed to education. The FY 2023 Executive Budget Financial Plan projects $249 million in revenue, which includes $200 million in already collected license fees in FY 2022, $357 million in FY 2023, $465 million in FY 2024, $493 million in FY 2025, $509 million in FY 2026 and $518 million in FY 2027. Effective FY 2023, $6 million will be directed to programs addressing problem gambling, $5 million will be directed to youth sports grant programs statewide, and the remaining amount will be directed to education.
Wagers included over $600M on football, over $540M on basketball and nearly $80M on hockey. The figures from yesterday's Super Bowl will be included in the weekly Mobile Sports Wagering Reports, updated on Fridays, found here.
The Commission implemented regulations requiring operators to prevent underage gaming, provide bettors the availability to impose spending limits, and provide information on the risks associated with gambling and signs of problem gambling. New Yorkers struggling with a gambling addiction, or who know someone who is, can find help by calling the State's toll-free, confidential HOPEline at 1-877-8-HOPENY (1-877-846-7369) or by texting HOPENY (467369).
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