New York sports betting surpasses $25 billion handle milestone in record time

Since the launch of legal sports betting in New York in January 2022, the state has surpassed all expectations by reaching a total handle of over $25 billion in just 16 months.

This milestone sets a record for the fastest time taken to reach this figure, surpassing the previous record held by New Jersey, which took about 47 months. Nevada remains the only other state to have accepted as much as $25 billion in sports bets due to its long-standing retail sports betting market.

The success of New York's sports betting market has brought significant benefits to the state. As of June 2023, the state has collected an impressive $983.5 million in taxes from sports betting. This is due to New York's tax rate of 51% on adjusted gross gaming revenue, the highest rate in the United States.

With the current pace, New York is on track to surpass neighboring New Jersey in terms of historic total handle. Despite launching online sportsbooks ahead of New York in 2018, the Garden State has reported just over $38 billion in total bets accepted.

FanDuel and DraftKings have emerged as leaders in the New York market, an unsurprising scenario. FanDuel held the top spot for almost 80 weeks before DraftKings overtook them in June, and the two are still neck-and-neck and remain far ahead of the competition. 

Together, they account for nearly 75% of the market share in the state, with FanDuel currently holding the top position. In 2022, FanDuel reported $6.6 billion in total handle, while DraftKings had $4.6 billion.

Since the launch of online sports betting in early January last year, sports betting operators in New York have generated approximately $2 billion in revenue after expenses. The tax revenue from this figure goes towards funding the state's education program, the general fund, and a statewide responsible gaming program.

The tax contributions from DraftKings and FanDuel alone have exceeded $800 million, according to data from the Empire State's gaming regulator, as they dominate yet another US sports betting market. However, the expected entrance of Fanatics into the NY sports betting scene, following its acquisition of PointsBet's US division, could intensify the competition.

Another recent highlight from the NY market is Bally Bet’s announcement that it will be suspending its services in the state as it overhauls its platform by implementing technology from Kambi. The revamp is expected to take a few months, and its re-launch will be gradual across the U.S.

The success of online sportsbooks in New York has also prompted a debate around the possibility of legalizing mobile casino apps, which could lead to additional gaming opportunities for residents and extra revenue for the state.