After the Supreme Court’s 2018 decision to legalize sports betting, numerous states in the US decided to provide licenses to betting operators and launch this lucrative industry. New York was one of them, and the decision seems to be paying off.
In January this year, according to a report by New York State Gaming Commission, the state broke the biggest sports betting handle record within a month. The total betting volume amounted to an incredible $1.6 billion.
New York thus broke the previous monthly record held by New Jersey, which was also the first state to surpass $1 billion in sports betting in September 2021.
In addition, New York’s January result was the first time in 12 months that a state other than New Jersey managed to rank first in terms of sports betting handle.
According to PlayNV.com Lead Analyst Mike Mazzeo, New York was expected to surpass New Jersey as the USA’s largest sports betting market.
It wasn’t exactly believed that it would take only three weeks, but now, “it’s clear that New York is going to be the flagship sports betting market in the US for the foreseeable future,” Mazzeo points out.
New York imposes a 51% tax rate on betting activity, which is among the highest rates in the country, so it isn’t surprising that the state also reported the highest tax revenue from sports betting in January — $58 million.
PlayUSA.com Lead Data Analyst, Eric Ramsey, notes that, unlike many other states, New York has managed to maximize tax revenue from sports wagering.
Ramsey adds: “Such a high tax rate could still lower the ceiling for New York’s sports betting market in the long term, but after three weeks of unprecedented volume, that seems like less of a concern.”
The experts seem certain that New York will be the leader of the nation’s sports betting industry, but only figures from future reports will tell us for sure.
