New York has become the undisputed leader in mobile sports wagering revenue in the US, generating more than $3 billion in tax revenue for the state in the first two years since it was legalized in January 2022. The impressive figures reflect the high demand and popularity of online sports betting among New Yorkers, as well as the state’s competitive and innovative regulatory model.
How New York’s Mobile Sports Wagering Program Works
New York’s mobile sports wagering program is based on a platform provider model, where the state licenses up to nine operators to offer online sports betting services through their own brands and platforms. The operators pay a one-time fee of $25 million each, as well as a 51% tax rate on their gross gaming revenue, which is the highest in the nation. The tax revenue is directed to the state’s education funds, grants for youth sports programming, and problem gambling prevention, treatment, and recovery services.
The state’s gaming commission oversees the program and ensures that the operators comply with the rules and regulations, such as ensuring fair and responsible gaming, protecting consumer data and privacy, and preventing underage and illegal gambling. The operators are also required to use official league data for in-play betting, partner with at least one Native American tribe or nation, and offer a minimum of four mobile sports wagering brands.
The Benefits of Mobile Sports Wagering for New York
Mobile sports wagering has brought many benefits for New York, both economically and socially. According to the state’s data, the program has generated more than $302 million in tax revenue in the first six months of operation, far exceeding the initial projection of $249 million for the fiscal year 2022. The program has also created more than 5,000 jobs and contributed more than $400 million to the state’s GDP, according to a study by Oxford Economics.
Mobile sports wagering has also enhanced the fan experience and engagement for New Yorkers, who can now enjoy a wide range of betting options and features, such as live streaming, cash out, and bet builder. The program has also increased the interest and awareness of various sports and leagues, especially among younger and more diverse audiences. Moreover, mobile sports wagering has provided a safer and more convenient alternative to the illegal and offshore markets, which offer no consumer protection or tax contribution.
The Future of Mobile Sports Wagering in New York
New York’s mobile sports wagering program has been a resounding success, setting new records and standards for the industry. The state has become the largest and fastest-growing market in the US, surpassing the previous leaders, New Jersey and Pennsylvania, in terms of handle, revenue, and tax revenue. The state has also become a model for other states that are looking to legalize and regulate mobile sports wagering, such as California, Florida, and Texas.
The future of mobile sports wagering in New York looks bright, as the program continues to evolve and innovate. The state recently authorized the ninth and final operator, Bally Bet, to launch its mobile sports wagering brand, making the program fully operational. The state is also exploring new opportunities and partnerships, such as allowing mobile sports wagering at sports venues and collaborating with neighboring states to create a regional market. The state is also committed to ensuring the integrity and sustainability of the program, by addressing the challenges and risks, such as problem gambling, competition, and regulation.
