New York State Sets Sports Betting Tax Record
It's fair to say New York State is pretty excited about online sports betting.
According to a press release from Governor Kathy Hochul's office, New York State has racked up $267 million in tax revenue from online sports betting since it was legalized in January of 2022. For reference, that's more total revenue in a few months than either Pennsylvania or New Jersey, which have had legalized online sports betting since 2018.
Per GeoComply, the geolocation software used by sports books, over 2.7 million unique online sports betting accounts were created in New York since legalization.
Assemblymember Gary Pretlow, the committee chair on racing and wagering, referred to sports betting as "an economic engine for New York." He even recalled a claim from March that "We are well on our way to being the sports betting capital of the world." That prediction seems well on it's way to becoming truth.
Another interesting aspect of New York State setting this record is where that tax revenue is going. In the 2023 fiscal year, $5 million will go towards youth sports programs, $6 million will go towards problem gambling education and treatment, and the remaining amount will go towards education aid. This means that New York State will invest hundreds of millions of additional dollars into education in the next fiscal year off the strength of its online sports betting revenue.
The number of users is likely to increase in the coming years as more young people become eligible to register, as well as increased efforts by online sports betting companies to market their products in New York. And with the first full NFL season of legal online sports betting on the horizon, New York schools may soon have more funding than they know what to do with.