Mobile sports betting has quickly become New York state’s second largest source of gaming revenue, trailing only the lottery. In State Fiscal Year (SFY) 2026, mobile sports betting generated $1.3 billion in state revenues from taxes on gross gaming revenues, according to a report released today by State Comptroller Thomas P. DiNapoli. The report also notes that the increased wagering activity led to a 8.5% increase in calls to the state’s problem gambling hotline in 2025 since 2020.
“While the legalization of mobile sports betting in New York has boosted state revenues, the rise in problem gambling, particularly among young people, is a major concern,” DiNapoli said. “The rapid proliferation of the prediction markets, which generate significant revenue based on sports activities, only makes it easier to get hooked on these online platforms. I was encouraged by the state’s decision to double funding for problem gambling services from $6 million to $12 million, but this is a drop in the bucket compared to the billions being wagered. We need to do much more to identify how mobile sports betting is impacting New Yorkers and ensure consumers are protected.”
Gaming Overview in New York
There are six different forms of statutorily authorized gaming in New York: horse racing, the lottery, video lottery terminals (VLTs), casinos (commercial and tribal), sports betting (mobile and in-person), and interactive fantasy sports. Each of these provide a source of revenue for the state, most of which is used for education purposes. In SFY 2026, the state collected over $5.1 billion in gaming revenues, $1.3 billion (33%) higher than in SFY 2016. However, excluding mobile sports wagering, gaming revenues from all other forms declined by 0.8%.
The lottery remains the state’s largest source of gaming revenue with average annual growth of 1.8% from SFY 2010 to SFY 2023; however, these revenues were nearly 10% lower in SFY 2026 than peak collections in SFY 2023. Through July of SFY 2027, lottery revenues were up only 0.6% ($4.4 million) from the same period last year.
Mobile Sports Wagering
Collections from the tax on gross gaming revenue increased by 78.4% between SFY 2023 ($727.4 million) and SFY 2026 ($1.3 billion). Since its implementation in January 2022 through the end of SFY 2026, over $91.2 billion in mobile sports bets have been placed, generating gross gaming revenue of $8.3 billion.
According to a recent joint report from the New York State Gaming Commission and the Office of Addiction Services and Supports (OASAS), there were 7.2 million unique mobile sports wagering accounts in New York in 2025. The average amount wagered per account that year was $3,500, with an average amount per wager of $42. In 2025, five sports accounted for over 90% of all mobile sports wagers. Basketball had more than $9 billion in wagers, leading all sports.
The total amount wagered, and the resulting gross gaming revenue and tax receipts vary during the year, driven in part by major sporting event schedules. For example, betting activity rises from October to March due to the World Series, the Super Bowl, and the NCAA’s “March Madness” basketball tournament.
In June 2026, betting activities across all authorized mobile sports wagering platforms increased by over $604 million (36.6%) year-over-year, but gross gaming revenues decreased nearly $90 million (43.5%). These results were influenced by the New York Knicks – considered underdogs with high sportsbook odds – winning the 2026 NBA Championship. During the first two weeks in June, over $1 billion in mobile sports bets were made, but gross gaming revenues reflected a net loss of $14.4 million as a result of winning wagers paid out exceeding wagers received.
During the World Cup, June 11 to July 19, 2026, excluding the NBA Finals week, gamblers placed $2.5 billion in bets, which was $775.5 million (45.7%) more than same period in 2025.
Prediction Markets
Prediction markets, such as Kalshi and Polymarket, are financial platforms where users can place bets on the outcome of real-world events, including sporting events. Since sporting events were added, global trading on these platforms increased significantly, $24 billion and $27.1 billion in 2025 for Kalshi and Polymarket, respectively. Through July, total trading volume for both was $208.6 billion. The majority of the global trading volume on both platforms is related to sporting events - 79.8% on Kalshi and 51.2% on Polymarket.
In October 2025, the New York State Gaming Commission sent a cease-and-desist letter to Kalshi for “illegally operating, advertising, promoting, administering, managing, or otherwise making available an unlicensed mobile sports wagering platform in New York state in connection with any sports event.” On July 31, the Governor and Attorney General announced that New York has sued Kalshi for running an illegal gambling operation in the state and to order Kalshi to forfeit all alleged illegal gains. In addition, a coalition of 44 state attorneys general, including New York, sent a letter stating that the Commodity Futures Trading Commission lacks authority to regulate sports-related event contracts.
Problem Gambling
Problem gambling remains a significant concern. According to the recent report from the Gaming Commission and OASAS, there were 2,545 calls to the state’s HOPEline, up 8.5% from 2020.
The proliferation of prediction markets, their availability to participants younger (age 18) than those allowed for mobile sports wagering (age 21), and their being subject to fewer advertising restrictions could exacerbate problem gambling.
Although the most recent report has provided additional insight into how mobile sports betting has affected problem gambling, additional information is needed, particularly in terms of the demographics of problem gamblers. New Gaming Commission regulations requiring improved data collection took effect on Feb. 28, 2026. DiNapoli said policymaking in this area will benefit from improved data collection and timely reporting.
Report
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