New York Project hits 2022 sports betting target
Despite the cooling of online sports betting in New York, state regulators believe the new market is just getting started. Rob Williams, executive director of the New York State Gaming Commission, is optimistic that when the NFL season begins in September, the market will once again begin to boost volume and meet more revenue targets in its first year of operation.
After years of discussion, Empire State opened a mobile sports betting market for private operators on January 8, 2022. The state has given the green light to a total of nine sportsbooks to operate in the new market, and has already processed $9.7 billion in online bets since its launch. This amount has made the state the top mobile sports betting destination in the country.
During the summer, mobile sports betting has dried up because of the fact that most major leagues are in the offseason. This new market, since its inception, has collected $368 million in state tax revenue. Mr. Williams also believes volume will increase next month, and that he could generate up to $500 million in tax revenue in his first year.
By comparison, in 2021, former governor Andrew Cuomo and his office predicted that the mayor could reach such numbers as early as 2026. Mr Williams shared that the Commission is quite pleased with the overall performance of the market and that these impressive results have been achieved without going through a full football season.
In addition, by including college football, the Empire State is expected to collect $500 million in tax revenue. Williams said that with the fall season of college and professional football coming up, the state will certainly beat revenue projections originally projected. He argued that the market was successful and that the state would have better returns in the future.
With an estimated 8% retention rate, nine sports books in New York State can earn more than $180 million in gaming revenue by betting solely on the NFL. And considering the rise in single gameplay's popularity, this could mean there could be more fall seasons in the Empire State.
However, some of the operators with local licenses are not very happy with the state's high tax rates, which are at 51%. A few months ago, DraftKings and FanDuel shared concerns about tax rates. But New York State Representative J. Gary Pretlow noted that such a change in the matrix could only happen if the state allows more operators to enter the Internet market.
Last week, the New York State Gaming Commission released a new weekly report on the mobile market. For the week ended Aug. 14, 2022, sports books posted nearly $197 million in sales. This is the third consecutive improvement from the previous week.
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