Jan 18, 2022
New Yorkers Flock to Online Betting in First Legal Weekend
(Bloomberg) -- New Yorkers flooded into online sports betting in the first weekend it was legal to do so in the state.
DraftKings Inc., FanDuel, a division of Flutter Entertainment Plc, Rush Street Interactive and Caesars Sportsbook, owned by Caesars Entertainment Inc., took in $150 million in wagers from over 650,000 player accounts since the online sports betting operations were allowed to commence operations in New York on Jan. 8, state officials said on Tuesday.
New York state expects to bring in $249 million in revenue from mobile sports betting in fiscal year 2022 and $357 million in fiscal 2023, according to budget documents released Tuesday. By fiscal year 2027, the state expects to bring in $518 million a year in mobile sports revenue.
Sports betting operators have agreed to pay the state a 51% tax rate for 10 years. The revenue the state brings in will be spent on addressing problem gambling, youth sports programs and education.
“Its launch has been a success,” said New York state budget director Robert Mujica. “Some of the concerns, we’re seeing them play out. People seem to be very engaged. All of the participants, both on the player side and corporate side, are seeing what they expected.”
New York regulators chose nine casino and online gaming operators to offer mobile sports betting in November. BetMGM commenced operations on Jan. 17.
Online betting operators have tried to crack the New York market for years. Mobile betting was included in the state budget passed in April 2021, and regulators have been working since then to structure and evaluate the bids. In New Jersey, an early adopter, $1.26 billion of bets were placed in November, many of them from New Yorkers crossing the state line to gamble.
Since a 2018 U.S. Supreme Court ruling struck down a federal ban on sports betting, 30 states now offer such wagering. FanDuel has the largest share of the U.S. market, followed by DraftKings Inc.
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