Mobile sports betting was only legalized a year ago.
ALBANY, NY – In its first year legalized, mobile sports betting generated $542 million in taxes and an additional $200 million in license fees.
Most of it goes to the state education system.
But $6 million will go to preschool education and treatment, while $5 million will be allocated to youth sports activities.
“What amazed me, what surprised me was that we did these numbers, these record numbers, one in the national numbers in the first year and with only nine operators,” said Sen. Joseph Addabbo Jr., chairman of the Senate committee. of racing, gaming and wagering.
The executive director of the NYS Gaming Commission says there have been 3.8 million accounts created and more than 1.2 billion transactions.
“Here’s the bad news. We don’t believe this success is sustainable with the current tax rate of 51%. Although it’s only been a year since the market launched, there are clear signs that the New York market has already peaked while other states remain. on a solid upward trajectory,” said FanDuel President Christian Genetski.
Genetski says there needs to be a more competitive market in the state, especially with the surrounding state offering lower tax rates.
New York has the highest tax rate for mobile sports betting at 51%, while the national average is 13%.
If nothing changes, DraftKings CEO Jason Robins says his company will have to make adjustments that include worse odds, no more promotional credits, and cutting back on advertising in stadiums around the state.
“If DraftKings is forced to offer poorer odds, and very limited promotions and advertising, it will be extremely challenging for us to compete with the illegal market,” Robins said.
“We can’t go back to our constituency and say, here’s something that’s going to reduce revenue and education funds. So that’s what a budget process is for,” Addabbo said.
Some suggest that New York State consider legalizing igaming, or online gaming, to bring in more revenue.
“Almost every state around the Internet or online game, I call it igaming for this point, has added igaming to its sports betting program,” said Howard Glaser, global head of government affairs for light and wonder.
“Together those markets in 2022 just from those three states, will grow a total of 51 percent. That’s a growth you can hardly find anywhere else.”
The Senate Committee on Racing, Gaming, and Wagering, and the Assembly Committee on Racing and Wagering will have a roundtable on Igaming in the future, but have not given an exact date.
Officials added that younger people are getting into mobile sports betting.
Although you must submit your Social Security number or driver’s license number to create an account, 58 minor accounts were created last year.
Officials say they have all since been closed.