New York State Tax Revenue From Mobile Sports Betting Clears $2 Billion

The New York State Gaming Commission reported $45.5 million in mobile sports betting revenue for the week ending May 26 on Friday, sending the all-time tax revenue generated from those operators above $2 billion.

Mobile sports betting launched in the Empire State in January 2022, and it put New York on a fast path to be the No. 1 market in the United States. The 51% tax rate for its nine digital operators — the highest in the country — has contributed to New York also being the only state with more than $600 million in state taxes generated in the post-PASPA era.

Receipts for the week ending Sunday totaled $23.2 million as all nine operators finished with positive revenue. It was a good week for the group, in general — wagering via the sports betting apps resulted in a robust 11.7% hold against $389.7 million in handle. It was the first time since the week ending February 4 that handle failed to reach $400 million, but eight of the nine operators had a win rate of at least 9%, with six reaching double digits.

DraftKings tops monthly handle and revenue

May has been good to DraftKings, which set the state’s all-time record for weekly revenue at $36.5 million for May 12. A fortnight later, it topped $20 million for the eighth time in 125 weeks of action thanks to a 13.1% hold on $155.7 million worth of wagers that resulted in $20.5 million in winnings. Three of DraftKings’ eight instances of surpassing $20 million in weekly revenue have occurred in the last six weeks.

The big week put eternal rival FanDuel in the uncommon position of looking up at DraftKings for both handle and revenue. Not that it fared all that badly — FanDuel collected $15.8 million in revenue from $149.3 million in handle, as its 10.6% win rate was its third straight in double figures.

Caesars was a strong third in both categories, crafting a hold just over 10% to reap $3.3 million in winnings from $33.1 million in wagers. It was the first time since February 25 that Caesars attained a double-digit hold and the ninth time this year weekly revenue cleared $3 million.

BetMGM ($2.4 million) and Fanatics Sportsbook ($2 million) rounded out the top five for revenue, with the latter reaching the $2 million benchmark for the first time since combining with predecessor PointsBet to claim $10.1 million for the week ending March 3. Fanatics paced the nine online books with a 13.6% hold, while BetMGM landed at 10.4%.

BetRivers reached seven figures in revenue for the second consecutive week, clearing the benchmark by $62,200. It was the first time BetRivers had back-to-back weeks of $1 million-plus in winnings since Dec. 3 and 10 as it fashioned a 12.3% win rate from $8.6 million worth of wagers.

Although, Resorts World missed out on a double-digit hold at 9.6% from $2.3 million in handle, its $221,220 narrowly cracked its top five all-time. Bally Bet edged over a 9% hold in claiming $157,400 from $1.7 million in bets placed.

WynnBET’s streak of failing to attain the industry-standard 7% hold reached a staggering 36 weeks as it finished with a 2.8% win rate while keeping $12,233 of its $436,300 handle. It continues to play out the string following the sale of its licenses to PENN Entertainment for $25 million earlier this year, waiting for PENN to present ESPN BET to the New York State Gaming Commission for approval.

WynnBET has a year-to-date hold of 3.4%, claiming $787,600 in revenue from $23.1 million worth of wagers accepted.