New York state mobile sports betting hits $2 billion tax revenue milestone

New York state's mobile sports betting tax revenue has crossed the $2 billion mark since the market's launch in January 2022, according to the latest figures released by the New York State Gaming Commission. The state reported $45.5 million in mobile revenue for the week ending May 26, pushing the all-time tax revenue generated from these operators over the $2 billion threshold.

In addition to being the top market for sports betting in the US, the state boasts a 51% tax rate, the highest in the nation. The new revenue milestone has also contributed to making New York the only state to have generated over $600 million in state taxes in the post-PASPA era.

For the week ending May 26, mobile sports betting apps in New York saw a total handle of $389.7 million, resulting in $23.2 million in receipts. Despite the handle falling short of the $400 million mark for the first time since early February, operators achieved a robust 11.7% hold. All nine brands reported positive revenue, with eight achieving a win rate of at least 9%.

DraftKings had a particularly successful May, setting a new state record for weekly revenue at $36.5 million for the week ending May 12. In the last week of May, the company recorded $20.5 million in revenue from $155.7 million in wagers, achieving a 13.1% hold. This marked the third time in six weeks that DraftKings surpassed $20 million in weekly revenue.

FanDuel, a fierce competitor to DraftKings, reported $15.8 million in revenue from $149.3 million in handle, with a 10.6% win rate, marking its third consecutive week of double-digit hold rates.

Caesars followed in third place, recording $3.3 million in revenue from $33.1 million in wagers, with a 10% hold. This was the first time since February 25 that Caesars achieved a double-digit hold, and the ninth time this year it cleared $3 million in weekly revenue.

BetMGM and Fanatics Sportsbook rounded out the top five, reporting $2.4 million and $2 million in revenue, respectively. Fanatics achieved a 13.6% hold, the highest among the nine operators, while BetMGM posted a 10.4% hold.

BetRivers recorded over $1 million in revenue with a 12.3% win rate from $8.6 million in wagers. Resorts World posted a 9.6% hold from $2.3 million in handle, resulting in $221,220 in revenue. Bally Bet achieved a 9% hold, with $157,400 in revenue from $1.7 million in bets.

WynnBET continued its struggle, posting a 2.8% win rate and keeping $12,233 of its $436,300 handle. This marks the 36th consecutive week WynnBET failed to attain the industry-standard 7% hold, as it awaits the approval of its sale to PENN Entertainment and the launch of ESPN BET in New York.