New York Sports Betting Revenue
New York sports betting revenue is falling far short of its potential due to the state’s slow approval of online gambling.
The Empire State’s fortunes should skyrocket when online sports betting gets off the ground.
In the meantime, this page will keep you informed with the most important details and analysis of monthly New York sports betting revenue reports. Here’s everything you need to know about the business of sports betting in the Empire State.
New York Sports Betting Revenue: Annual Figures
The New York market has seen slow but steady growth since its launch in June 2019, but with no online sportsbooks available yet, the state consistently underperforms its potential.
The table below displays annual financial figures for New York’s retail sports betting industry.
Here’s what each number represents:
- Revenue reflects the gross gaming revenue kept by sportsbooks after paying out winning bets.
- State tax revenue displays taxes collected by the state and local jurisdictions.
|Year||Revenue||State Tax Revenue|
Despite being shut down for five months due to coronavirus-related challenges, the Empire State recorded $10 million in sports betting revenue in 2020, a year-over-year growth of 38 percent.
We anticipate these numbers will increase substantially in 2021 if New York can record a full calendar year of sports betting activity for the first time. Expect to see explosive growth when the state goes live with online sports betting.
Latest NY Revenue News
Here’s a quick synopsis of the latest news from New York sports betting financial reports.
June 2021 – New York reports $1,858,642 of gross gaming revenue for June, the Empire State’s second-best month in 2021. However, this is still barely half of its January 2021 earnings.
May 2021 – New York’s retail sportsbooks generate $1,590,114 in gross gaming revenue in May. To put this figure in perspective, New Hampshire generated $3,115,230 in the same time period. It seems even the New York Knicks making the NBA playoffs can’t help drive up the Empire State’s betting handle without online betting options. The coming launch of online sportsbooks will surely lead to exponential growth in New York sports betting revenue.
April 2021 – New York sportsbooks report $1,322,623 of gross gaming revenue for April.
April 6, 2021 – Governor Andrew Cuomo announces highlights of New York’s enacted budget for the fiscal year 2022, which authorized mobile sports betting in the state. The budget projections include $99 million in state revenue for the remainder of this year and more than $500 million in state revenue once mobile sports betting is fully phased in.
March 2021 – New York declared $1.8 million in sports betting revenue for the month of March.
February 2021 – New York raised $1,153,276 in gross sports betting revenue in February 2021 versus being roughly $180,000 in the red this time last year due to the onset of the COVID-19 pandemic.
January 2021 – New York sets a new state record in monthly sports betting revenue. Sportsbooks retained $3,569,855 after paying out winning bets. A new high of $356,986 in taxes wound up in state coffers. These figures will continue to grow if the state goes live with online betting in 2021.
New York Sports Betting Revenue: Month-By-Month Data
Sports Betting Dime keeps track of the growth of legal sports wagering by tallying monthly financial reports provided by each state.
The table below shows New York’s sports betting gross revenue and state taxes collected each month since legalization. Unfortunately, New York does not currently provide its total betting handle (the amount wagered on sports), so we cannot provide that information or calculate NY’s hold percentage.
|Month/Year||Revenue||State Tax Revenue|
|Total (since launch)||$29,892,357||$3,007,196|
Sports Betting Dime will update this table monthly with the New York State Gaming Commission’s figures.
NY Market Overview
To understand the sports betting market in New York, here’s some context.
State Population (2020 Census): 20,201,249
In-state Pro Teams: New York Yankees and New York Mets (MLB); New York Knicks and Brooklyn Nets (NBA); New York Liberty (WNBA); Buffalo Bills (NFL); New York Islanders, New York Rangers, and Buffalo Sabres (NHL). Several other teams represent NY but play in New Jersey.
Launch Date: June 16, 2019
Biggest Monthly Revenue: $3,569,855 (January 2021)
Regulator: New York State Gaming Commission
Platforms: Retail only (online launch possible later in 2021 or early 2022)
Tax Rate: 10 percent of retail-based revenue
New York Sports Betting Revenue Insights
New York is by far the most populated state that currently allows legal sports betting, and the NYC metro area is home to multiple teams from each of the big four sports leagues (NFL, NBA, MLB, and NHL). In theory, New York has the potential to be the biggest sports betting market in the country.
New York was quick to legalize sports wagering but was slow to authorize online betting. The state included online wagering in its budget for the fiscal year 2022 and will begin accepting applications for operating licenses in July 2021. Online sportsbooks are not expected to launch until later in 2021 or early in 2022.
Here are some themes we’ve noticed when examining the New York market.
Casino closures due to the COVID-19 pandemic undoubtedly hindered the NY sports betting industry last year. On the bright side, this may have increased support for online betting options amongst state lawmakers as a way to capture much-needed revenue.
In 2020, New York sportsbooks reported a monthly loss for the first time, with revenue of -$179,593 in February. The industry stayed narrowly afloat in March 2020 before the state government was forced to shut casinos entirely for the next five months due to the spread of coronavirus.
Granted, few sports were happening in spring 2020, so the sports betting industry as a whole took a hit, and there were plenty of other more pressing concerns for citizens of New York. But with the state’s retail locations closed and no online betting allowed, once sports returned, New Yorkers’ only option was to travel across state lines to place their bets via a mobile app in New Jersey or Pennsylvania.
New York is missing out on millions of dollars in gambling revenue and state tax revenue every month by limiting sports bettors to in-person wagers even without coronavirus concerns.
Here’s how New York sports betting gross revenue for the final three months of 2020 compares to that of the top US sports betting markets.
Perhaps even more illustrative of the benefits of allowing online wagers is a side-by-side comparison of New York and New Hampshire.
|New York||New Hampshire|
|Allows Online Betting?||No||Yes|
|State Population (2020)||20,201,249||1,377,529|
|In-State Pro Sports Teams||9+||0|
|Revenue (Oct-Dec 2020)||$7,501,911||$13,511,987|
New York ranks below other retail-only sports betting markets in the United States, such as Delaware and Mississippi.
Being slow to allow online and mobile betting has clearly held New York’s sports betting industry back. Lawmakers are aware of this, with Governor Andrew Cuomo and others declaring their support for online betting and pushing it through in the state’s budget.
In his bid to pass new sports betting legislation in 2021, Senator Joseph Addabbo Jr. cited a Spectrum Gaming Group report estimating that New York is missing out on approximately $1 billion per year in revenue without online sports betting.
New York should see a massive boost when it launches online sports wagering and could perhaps one day be the nation’s biggest market. That said, it will likely always face stiff competition from other Northeastern states.
New Jersey was the largest market in America in 2020, and Pennsylvania has firmly secured itself in third place for the time being. Both sports betting powerhouses are neighbors to New York and have several well-known casino resorts. More importantly, their online sportsbooks were gifted several years to get a head start on building their customer base.
Nearby, Maryland looks set to launch sometime later in 2021, and other wealthy, sports-crazed border states such as Connecticut and Massachusetts are making moves towards legalization.
All of this to say, New York will soon find itself smack in the middle of a highly competitive corner of America when it comes to sports betting.
Keep an eye on the Empire State
New York’s sports betting industry has been underperforming thus far due to being a retail-only market, but that could soon change if online betting goes live in the state.
Will New York catapult itself to the top of the US sports betting market, or will it be stuck falling behind for another year?
Sports Betting Dime will keep you updated with the latest New York sports betting information, via our NY sports betting page. To see how New York compares to other states, be sure to explore our state-by-state sports betting revenue tracker.