New Yorkers bet $2 billion, bring in $80 million in tax revenue to the state coffer

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Mobile or online sports bets are legalized in New York state from 8 January 2022. After more than a month, punters have so far waged more than $2 billion in bets bringing $80 million in tax revenue according to a report in the New York Times. The wagers include an astonishing figure of $472 million in the week ending with last Sunday’s Super Bowl.

Google, meanwhile, modified its Google Ads Gambling and Games policy for the United States to accept and run ads for sports betting from certified, state-licensed entities in New York from January 8.

Is sports betting legal in New York?

Gaming in the state is regulated by New York Gaming Commission from which operators are required to obtain a license. DraftKings, Caesars, BetRivers, and FanDuel have obtained a license before day one after meeting all regulatory requirements.

Operators are required to pay a 51 percent tax rate on gross gaming revenue — the difference between what they take in from bettors and what they payout. As of Friday (18 February), New York had already taken in some $78.5 million from that tax — almost all of which is marked for education — which is nearly 150% of the original estimate of $49 million in the first three months of 2022. This estimate is now revised to $110 million, and the state also collected some $200 million in license fees from operators.

At the same time, the state Office of Addiction Services and Supports reported that it has already seen a 46 percent increase in calls to its gambling helpline this January, compared with the previous January, amid new public awareness campaigns about responsible gaming.

Also read: The New York fantasy case relied on by the Karnataka Advocate General

Around a quarter of the entire nation’s mobile-sports wagers on the Super Bowl originated from New York surpassing Nevada, the nation’s gambling headquarters, and New Jersey, which became the No. 1 spot in mobile sports betting after legalizing in 2018.

According to the American Gaming Association, Americans wagered more than $57 billion on sports in 2021, a record, as casinos and other gambling outlets rebounded with their highest-grossing year ever in 2021 after a pandemic slump. In a bid to gain market share, betting platforms offered promotions, including oversized payoffs, risk-free bets, and thousands of dollars in free betting credits deposited in players’ accounts.