When it comes to sports betting tax revenue in the United States, New York state stands out above the rest.
A recent study has revealed that the Empire State generates more than 37 percent of all U.S. sports betting tax revenue. This impressive figure solidifies New York’s position as a powerhouse in the sports betting industry.
The Quarterly Survey of State and Local Tax Revenue (QTAX), conducted by the United States Census Bureau, has been tracking various tax sources, including sports betting, to provide insights into the economic landscape.
The third-quarter 2023 report revealed that sports betting contributed nearly $506 million in tax revenue and gross receipts. This represented a significant increase of 20.5 percent compared to the same period in 2022. However, it was slightly lower than the $571.5 million generated in Q2 2023.
Among all the states, New York emerged as the clear leader in sports betting tax revenue. During Q3 2023, New York generated a staggering $188.5 million, which was almost five times higher than Indiana’s $38.6 million, the second-highest contributor. New York’s dominance can be attributed, in part, to its high tax rate on gross gambling revenues, standing at 51 percent, the highest in the nation.
Other states that made significant contributions to sports betting tax revenue include third-place Ohio ($32.9 million) and fourth-place Illinois ($28.8 million).
New York has been continuously breaking sports betting records, further solidifying its position as a key player in the industry. Recently, the state announced that it had set a new online sports betting record for the second consecutive month. In January, revenue reached an impressive $211.5 million, surpassing the previous record of $188.3 million set in December 2023. This marked a significant increase of 12.3 percent and a remarkable 41.6 percent compared to January of the previous year.
Despite these achievements, January marked the end of a three-month streak during which New York players wagered over $2 billion on sports online. In terms of January’s handle, the total amount wagered reached $1.96 billion, a 9.5 percent increase from January 2023. However, it was 3.9 percent lower than December’s handle of $2.04 billion.
Within the online sports betting market, one operator stands out in New York. Flutter Entertainment’s FanDuel posted a state record of $109.2 million in online betting revenue, further solidifying FanDuel’s position as the frontrunner in the Empire State.
Another player who could have an impact in New York is Penn Entertainment, which recently announced its agreement to acquire Wynn Interactive Holdings’ New York sports betting licenses. This acquisition paves the way for Penn to launch ESPN Bet in the state in 2024.
