New York Governor Reports $862 Million Revenue from Online Sports Betting in 2023

Quick Intro

In 2023, online sports betting in New York achieved a remarkable $862 million in revenue, marking its second operational year. This figure, along with the $693 million and $200 million collected in licensing fees in 2022, brings the state’s total earnings to an impressive $1.75 billion. These funds are allocated to crucial areas such as educational initiatives, sports programs for disadvantaged youth, and services for problem gambling prevention, treatment, and recovery.

The legalization of online sports betting in New York was initiated by Governor Andrew Cuomo, who signed the bill in April 2021. The state began accepting its first bets in January 2022, following Cuomo’s approval of a limited-operator, government-bid model for online sports betting. This move has propelled New York into one of the largest markets in the United States for sports betting.

Despite the success of online sports betting, online casinos remain prohibited in New York, contrasting with neighboring states like New Jersey, Pennsylvania, and Connecticut, where they are legal.

New York’s Prominent Position in National Gambling Handle

Nationally, New York holds the third position in terms of the total amount wagered, trailing behind New Jersey and Nevada. Following the 2018 Supreme Court decision to overturn the Professional and Amateur Sports Protection Act (PASPA), New York’s total betting handle reached $35.7 billion, positioning it third after New Jersey’s $44.2 billion and Nevada’s $36 billion. This achievement is notable given that New York has only offered sports betting for two years compared to New Jersey’s and Nevada’s longer durations. In this period, New York recorded nine of the top ten highest monthly sports betting handles in the US.

The sports contributing most to New York’s online sports wagering handle, exceeding $11.1 billion, include the NBA, MLB, NFL, and NCAAF, with the NBA leading at over $3.6 billion.

Governor Kathy Hochul highlighted New York’s leadership in responsible entertainment and the significant revenue generated for education and other crucial areas. She expressed commitment to continuing these successful gaming policies, ensuring responsible mobile sports wagering experiences with appropriate support for those in need.

Future Prospects for Online Casino Legalization in New York

Senator Joseph Addabbo, a staunch advocate for online gambling expansion in New York, recently introduced a bill aiming to legalize online casinos (iGaming), internet lottery, and potentially broaden horse race betting in the state. However, Governor Hochul seems hesitant to pursue online casino legalization this year, preferring to first finalize the awarding of three downstate casino licenses. With local zoning regulations potentially delaying these licenses until 2025, the introduction of online casinos in New York might not be imminent.

This delay in online casino legalization underscores the complexity of expanding gambling laws in the state. While online sports betting thrives, the future of online casinos remains uncertain, tied to the intricate process of licensing and regulatory compliance.

Final Thoughts

New York’s remarkable achievement in generating $862 million from online sports betting in 2023 highlights its successful foray into the industry. Despite its recent entry, New York has rapidly ascended to a leading position in the national gambling market. While the state revels in this success, the future of online casinos remains in limbo, hinging on regulatory developments and legislative decisions that may reshape New York’s gambling landscape in the coming years.

Source: https://www.governor.ny.gov/news/governor-hochul-announces-mobile-sports-wagering-generated-862-million-new-york-state-its