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New York Generates $22 Million in Sports Betting Tax Revenue

New York Sports Betting: A Thriving Market Amidst Fluctuating Revenues

As the 2024 football season kicks off, New York’s sports betting landscape continues to flourish, showcasing impressive numbers even amidst a slight dip in revenue. The New York State Gaming Commission recently reported that for the week ending September 22, the state saw a staggering online sports betting handle of over $480 million. This figure underscores the robust interest and engagement of New Yorkers in the sports betting scene.

Weekly Handle and Revenue Insights

The reported handle for the week was $480,070,418, leading to gross gaming revenues of $43,547,282. While this represents a notable decrease of nearly $26 million from the previous week, it still highlights the resilience of the market. The fluctuations in revenue are not uncommon in the sports betting industry, especially as seasons change and new operators enter the fray.

Operator Performance: DraftKings vs. FanDuel

In a familiar rivalry, DraftKings once again outperformed FanDuel in terms of total handle, reporting $181,648,143 compared to FanDuel’s $175,548,247. However, FanDuel managed to secure the top spot in gross gaming revenue, generating $19,255,037 against DraftKings’ $17,402,769. This ongoing competition between the two giants illustrates the dynamic nature of the New York sports betting market, where user preferences can shift rapidly based on promotions, user experience, and the sports calendar.

The Entry of ESPN BET

A significant development in the New York sports betting landscape is the full launch of ESPN BET, marking the addition of a ninth operator in the state. This expansion is expected to further enhance competition and provide New Yorkers with more options for placing their bets. With ESPN’s strong brand recognition and extensive sports coverage, the new operator is poised to attract a substantial user base, potentially reshaping the competitive landscape.

Breakdown of Sportsbook Handles

The detailed breakdown of handles for the week ending September 22 reveals the following figures for the nine sportsbooks:

  • DraftKings NY: $181,648,143
  • FanDuel NY: $175,548,247
  • Fanatics Sportsbook: $36,986,264
  • BetMGM NY: $37,151,535
  • Caesars Sportsbook NY: $35,638,164
  • BetRivers: $9,254,205
  • Bally Bet: $2,423,178
  • Resorts World: $1,420,682
  • WynnBET: $0

These figures not only reflect the competitive nature of the market but also provide insights into consumer preferences and the effectiveness of each operator’s marketing strategies.

Cumulative Performance Since Launch

Since the launch of online sports betting in New York on January 8, 2022, the cumulative handles have been impressive. FanDuel leads the pack with a staggering total handle of over $20 billion, followed by DraftKings at nearly $17 billion. Other operators like Caesars and BetMGM have also made significant contributions, but none have matched the dominance of the top two.

  • FanDuel: $20,460,321,598
  • DraftKings: $16,935,048,034
  • Caesars: $6,277,205,043
  • BetMGM: $3,635,744,642
  • BetRivers: $1,485,363,477
  • Fanatics Sportsbook: $1,404,942,554
  • WynnBET: $234,058,992
  • Resorts World: $196,890,472
  • Bally Bet: $101,420,028

Tax Revenue Contributions

The financial implications of sports betting extend beyond the operators themselves. For the week ending September 22, the nine sportsbooks collectively generated $43,547,282 in gross gaming revenue, resulting in approximately $22,209,113 in tax revenue for the state, thanks to New York’s 51% online sports betting tax rate. This revenue plays a crucial role in funding various state initiatives and programs, further emphasizing the importance of a thriving sports betting market.

Weekly Gross Gaming Revenues

The breakdown of gross gaming revenues for the week highlights the performance of each operator:

  • FanDuel: $19,255,037
  • DraftKings: $17,402,769
  • Caesars: $2,956,703
  • BetMGM: $1,423,382
  • Fanatics Sportsbook: $1,360,487
  • BetRivers: $891,884
  • Bally Bet: $163,224
  • Resorts World: $93,796
  • WynnBET: $0

Long-Term Revenue Trends

Since the launch of online sports betting, the total gross gaming revenues have also been substantial, with FanDuel leading the way with over $2 billion in revenue. The competitive landscape continues to evolve, and as new operators like ESPN BET enter the market, the dynamics of revenue generation and user engagement are likely to shift.

  • FanDuel: $2,151,902,468
  • DraftKings: $1,434,234,873
  • Caesars: $453,409,619
  • BetMGM: $238,731,292
  • Fanatics Sportsbook: $99,712,684
  • BetRivers: $87,815,765
  • Resorts World: $12,837,775
  • WynnBET: $11,376,541
  • Bally Bet: $5,847,828

As New York continues to navigate the complexities of the sports betting industry, the combination of competitive operators, fluctuating revenues, and significant tax contributions paints a picture of a vibrant and evolving market. The coming weeks and months will be crucial as the state adapts to the new landscape with the addition of ESPN BET and the ongoing excitement of the football season.

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