New York State Sets Sports Betting Tax Record

Governor Kathy Motul announced earlier this month that New York set a state tax record in sports betting, generating $267 million in the five months since legal gambling began.

Legal online sports betting started on January 8th. Thanks to New York’s astronomical 51% tax rate, which ranks alongside New Hampshire as the highest in the country, it didn’t take long for the Empire State to set a new tax. income record. New York and New Hampshire are the only states, after Delaware and Rhode Island, to tax at least half of the earnings of sports betting operators.

“In less than half a year, New York has become a state leader in implementing successful gaming policies, with hundreds of millions of dollars spent on important programs that improve the lives of all New Yorkers,” Hochul said. said in a news release. “I am committed to supporting responsible and effective gaming policies that continue to advance the industry and drive economic growth in the state.”

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Comparing sports betting in New York and New Jersey, New York set a record $267 million in five months, while New Jersey, which has a tax rate of 13%, closed legal online sports betting in June 2018. Since its inception, it has generated $229 million in tax revenue. Pennsylvania has a higher tax rate than most states (36%).

Casinos have accounted for about $4.3 million (out of $267 million) since sports betting began in July 2019, more than any other state.

Considering New York is the fourth most populous state in the United States and has a high tax rate, it’s no surprise that New York set tax records. California, Texas and Florida, which have larger populations than New York, may legalize sports betting or are not considering doing so this year.

New York May Sports Betting Handles

In May, New York sportsbooks brought in more than $1.26 billion from online gambling. Gross Gaming Revenue (GGR) last month was around $110 million. Operator and Education net revenues were $53.8 million and he was $56 million, respectively.

According to the New York State Gambling Commission, New York’s online sportsbooks have generated over $7 billion in mobile betting and over $500 million in GGR since sports betting began. New York has a total of eight sportsbooks: BetMGM, FanDuel, DraftKings, BetRivers, Caesars, PointsBet, WynnBET and Resorts World Bet.

The May total falls short of the levels New York enjoyed earlier this year.As the initial excitement from the start of sports betting fades and professional and college sports leagues enter the offseason, the state is settling a bit. Revenues are expected to rise again when professional and college football resume in the fall, but with a tax rate of 51%, some sportsbooks, such as BetMGM, will be unable to sell in-state. spending should be reassessed.

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