The new NFL season has begun, and with it, we see the real ‘return’ of New York sports betting. After two months of less than $1 billion in online sports betting in New York, the state’s bookmakers came back strong in September, reporting total revenue of $1.26 billion.
New York online sportsbooks reached a monthly record of $143.3 million in gross gaming revenue. This led to $73.1 million in tax revenue, setting a monthly record as the best and most historic US tax revenue.
During the weaker months of July and August, New York online sports betting operators added $800.8 million and $872.2 million in handlings. It was the first time the state had gone below the $1 billion mark since its January 8 launch.
However, NFL betting is the ‘king’ of New York and beyond. The return of regular season games has predictably led to an increase in the number of online sports betting.
Aaron Judge’s quest for an all-time record probably helped, too. The player ended the 2022 season with 62 ‘homers’, surpassing Roger Maris (61) and Babe Ruth (60) in the AL and New York Yankees season records.
Micro betting platform Simplebet reported that Judge was the most betting player in MLB this season with 150K. Pete Alonso of the Mets was next with 75,000. Simplebet said that 38% of these bets took place in the last two weeks of the season.
New York sportsbook tax rates
The 51% tax rates for online sports betting operators in New York remains a matter of great importance. Operators knew what they were getting into when they entered the market of their own free will. However, players pushed for a reduction through lobbying efforts ahead of the 2023 legislative session.
The budget enacted by the government and Kathy Hochul for the year 2023 (April 1, 2022 to April 1, 2023) projected that the state would raise $615 million in tax revenue from online sports betting.
At mid-fiscal year, the Empire State is at $307.3 million. Reaching the $615 million mark would make it harder for operators to convince state officials that they need to lower the tax rate. That doesn’t mean they plan to stop trying.