New York beat early projections as sports gambling giants such as FanDuel, DraftKings and Caesars attracted new customers through massive incentives and free wagering ahead of the start of the NFL playoffs.
In the first weekend, four online sports operators in New York received $150 million in stakes and 650,000 unique player accounts were set up. By the end of the first week, he had grown to 1.2 million accounts, according to his GeoComply software provider. Secure a spot for sports bettors. That’s more than New Jersey and neighboring Pennsylvania combined during the same period.
Home to 20 million residents with twice the population of New Jersey, New York has held onto as the nation’s sports betting capital since 2019 after revenues surpassed sports in Nevada and sprawling Las Vegas. It may eventually surpass the previous title. Book.
“With the products we have, you can expect to fly over New Jersey.” State Senator Joseph Adabo (D-Queens), who sponsored New York’s sports betting bill, said: “But it’s about sustainability and the long-term.”
More States Participate in High Stakes Battles
It took sports betting four years to go from a black market vice where most Americans banned bookmakers and risky offshore gaming sites to becoming an accepted pastime for the majority of the United States.
New Jersey also entered the market most aggressively after winning and losing a number of lawsuits, helping solidify its national lead as other states catch up.
Sports betting is legal in over 30 states, 18 of which have some form of online betting. It quickly became a cash cow for state and local governments after a 2018 Supreme Court ruling overturned a federal ban that effectively gave Nevada a legal monopoly over the industry. rice field.
In New Jersey, sports bets exceeded $1.3 billion last October alone. This is a national record. All but $100 million comes from online betting, even including nine casinos and his three racetracks offering in-person betting in the state in Atlantic City.
In New York, four upstate casinos have offered face-to-face betting since 2019, but revenues are paltry compared to the early weeks of online betting.
And this industry is just getting started.
California to hold referendum in November Likely to decide whether to enter the burgeoning sector, Ohio plans to have online sports betting in 2023.
Sports betting remains opaque in the two largest states, Florida and Texas. A federal judge last month rejected Florida’s proposal to legalize it through Florida’s Seminoles, leaving the state open to a referendum in November. Texas lawmakers may reconsider when they return to Austin in 2023.
Goldman Sachs predicted last March that US online sports betting and Internet gambling revenues could rise from $900 million annually to $39 billion by 2033.
New York’s entry into the mobile industry could be an important guide to showing room for growth.
GeoComply found that only 9% of New York players have made a bet in New Jersey before. Nearly 88% of New York customers were first-time users of the site.
In other words, there seemed to be enough interest in New York to limit its influence on New Jersey.
“New York sports betting launch momentum continues, mostly homegrown,” Lindsey Srader, the company’s managing director of gaming, said in a statement.
In fact, New Jersey averaged 12.6 million transactions in the two weekends before New York’s launch, and 13.1 million in the two weekends after, the company said.
“The launch of mobile/online sports betting in New York may only affect you if you live near the New Jersey border and have the convenience of traveling from New York to New Jersey for betting purposes. By email from the Institute of Gaming, Hospitality and Tourism at Stockton University in Galloway.
It’s unclear how sustainable the rush in New York will be. The state expects tax revenue to rise from $375 million in the next fiscal year to $518 million by 2027. Also, like regular casino gambling, the ultimate market size for sports betting may be limited.
Still, New Jersey says it is well positioned to remain competitive with New York for one main reason, especially taxes.
New York’s tax rate for mobile sports betting providers is 51%, the highest in the nation compared to New Jersey’s 14.25%.
And New Jersey’s sports betting revenue, which remains after winners are paid, shows no signs of slowing down. State records show that he doubled between 2020 and 2021, bringing him to $816 million, the nation’s top earner.
The tax rate cut should give New Jersey businesses an opportunity to offer new incentives to bring back New York customers, said James Prusis, chairman of New Jersey’s casino governing board. .
“There is no doubt about it. There will be some impact, but I think we are well positioned,” he said. “New Jersey has a much better tax environment than New York.”
For Atlantic City, which has struggled for years after casinos began opening in other East Coast states, New Jersey-sanctioned mobile sports betting and other internet gambling games have allowed gamblers to stay in resort towns without attracting gamblers to hotels. provide another way to generate revenue for
The record shows that internet gambling and sports betting will account for 46% of total gaming revenue in New Jersey in 2021, roughly on par with all revenue casinos make from traditional gaming.
Perhaps the biggest impact to date is in New Jersey’s physical sportsbook.Meadowlands Horse Racing, by far the largest sportsbook in the state, is located just ten miles (10 miles) from Midtown Manhattan. Attendance at the venue is declining.
Owner Jeff Grahl, who also owns a sportsbook and racetrack in New York’s Southern Tier area, said he expects the mobile side of the business to hit more than the direct pay side at Meadowlands.
But he also wondered how long New York’s rise would last.
“I guess we’ll have to see what happens six months from now when all the free money is gone,” said Gural.