Just five months have passed since the launch of sports betting in the state of New York but the generated revenue has gone through the roof making New York a leader in sports betting. The new gambling opportunities have brought in the whopping amount of $267 million in tax revenue, divided into $263 million from mobile devices betting and the rest coming from sports wagers at casino venues.
Politicians Rejoice in the Success
Politicians are of course very happy with the New York state’s financial wins. Gary Pretlow, chairman of the Assembly Committee on Racing and Wagering, commented:
“Mobile sports betting is an economic engine for New York. I am ecstatic with the revenue that has been generated for education, youth sports and problem gambling.”Assembly Committee on Racing and Wagering chairman Gary Pretlow
In a press release, governor Kathy Hochul also celebrated the state of New York taking the leader position in sports betting in comparison to other states where betting has been legal for a lot longer:
“In less than half a year, New York has become a leader among states in implementing successful gaming policies, with hundreds of millions of dollars going to important programs that will improve the lives of all New Yorkers. I am committed to upholding responsible and effective gaming policies that will move the industry forward and continue to drive our state’s economic growth.”New York governor Kathy Hochul
Her statement was backed by numbers showing that Pennsylvania, where people have been able to place sports bets since 2018, has collected revenues of $253 million while New Jersey has received just $229 million since June 2018 when sports betting was legalized.
98% of the Sports Betting Tax Revenue Goes to Education
Governor Hochul also highlighted in her press release that in terms of wagers mobile sports betting has way surpassed New York’s four commercial casinos, which by the end of May had collected a modest $4.3 million in gross gaming revenues (GGR).
Nearly all of the massive revenues from the recently legalized gambling activity are being used to finance elementary and primary schools and youth sports programs, with 2% allocated to programs that aim to help with gambling problem prevention, treatment, and recovery. In addition, the state of New York also collects license fees from sports betting platform providers that up to now have amounted to a total of $200 million. This revenue has also been directed to support education.