YONKERS, WESTCHESTER COUNTY, NY — June 3, 2022 — As of January 2022, mobile sports betting is now legal across New York State. Sports betting has been technically legal in NY since 2013, although it wasn’t until 2019 that the first retail sportsbooks opened. A few years later and Governor Cuomo finalized the plans to bring mobile betting to the state, allowing users to sign up and place bets from anywhere.
As the fourth most populous state in the country, New York has always been a highly attractive prospect for gambling companies. Once the new sports betting bill was signed into law, it didn’t take long for the biggest names in the gambling industry to set up shop, as seen in this overview of all mobile sportsbooks in New York.
NY Sportsbook Taxes
While NY is a huge market for sportsbooks, they do have to agree to pay a huge 51% of gambling revenue in taxes. This is very large compared to New Jersey’s 13% or Pennsylvania’s 36%. Despite the high tax rate, it hasn’t put off sportsbooks from entering the state, and NY has quickly become one of the biggest states for sports betting. In the first thirty days of legal mobile betting, more than $2 billion was wagered, leading to an incredible $70 million in state taxes.
This was a new record for sports betting in the US, and Governor Kathy Hochul commented on the figures. “Over the past month, we’ve seen how mobile sports wagering can be an economic engine for New York, driving significant funding to our schools, youth sports, and so much more. As this new industry continues to grow, New York will make sure we have the resources and guidelines in place to make it a success for all.”
Original projections for tax revenue from NY sports betting were around $160 million annually, but it seems like this will be blown out of the water. Although the NFL season is over and the NBA season is drawing to a close, there are still plenty of sports to bet on, and millions of dollars are being wagered each day.
What Is This Tax Income Used For?
Like other states, New York has pledged to use the tax income from gambling to support local community projects as well as fun gambling treatment programs. One of the main arguments against legalizing gambling was that it could lead to issues within the community as well as gambling addiction and debt. By making the gambling companies pay a fair share of taxes and using that money to treat these problems, it becomes a win-win situation for people living in the state.
Before legalizing sports betting, New York was facing a budget deficit of $2.9 billion, so the tax revenue from gambling will also be used to help address that. Additionally, community projects for education and youth sports will be supported thanks to the increased revenue.
New York is ranked 16th in education, 30th in infrastructure, 43rd in the economy, and 46th in opportunity among all states in the country. Overall, New York is placed 21st according to U. S. News, which takes multiple factors into consideration. This may surprise many people given the state’s large population as well as the cultural and historical significance of NY.
By focusing on education and youth sports, the state hopes that gambling revenue will help the next generation of Americans live healthier and happier lives. It’s unclear whether the amount of money wagered at sportsbooks will continue forever, but sports betting in NY is certainly not going away anytime soon.