America’s largest online gaming market is nearing the end of its most successful year.
New York, which authorized online sports betting last year, is finishing 2023 as one of the top gaming markets in the world behind record handle and revenue. The Empire State, which is home to nine online sports betting sites, got off to a hot start in 2023 with a January sports wagering handle that reached nearly $1.8 billion — a 6.7% increase compared to January 2022.
The group of operators that benefited from the strong start to the year, included DraftKings, FanDuel, Caesars Sportsbook, BetMGM, and PointsBet — now owned by Fanatics. Bally’s was also part of the group before the sportsbook took a five-month hiatus to retool its platform.
The popularity of online sports betting in New York paid dividends for those operators in 2023. Earlier this month, the state reported weekly revenue of $56.9 million for the week ending Dec. 10. The results represent a 76% increase compared to the same period last year. New York taxes online sports betting operators at a 51% rate on revenue.
See also: Sports Betting in Nevada in 2023
The state’s all-time high for weekly revenue from sports wagering was $62 million for the week ending Oct. 15. During that period, New York sports betting operators posted a wagering handle of $402.7 million.
The results in October helped the Empire State set a new record with a monthly handle of $2 billion — the first U.S. jurisdiction to reach that mark. New York benefited from an abundant sports schedule in October that included the NFL, college football, NHL, MLB, and the NBA. DraftKings and FanDuel — America’s largest operators — combined to take in 77% of bets.
New York would immediately build on October’s historic results. The state’s online sportsbooks combined for a $2.1 billion handle in November with gross revenue finishing at $150.8 million for operators. New York collected $77 million in tax revenue from sports betting in November.
FanDuel emerged as New York’s top sportsbook in November with a $925.3 million handle, while DraftKings finished second in the state for the month behind a $732.1 million handle.
See also: 10 Predictions, Bold and Otherwise, About Sports Betting in 2024
Looking ahead
New York could emerge as a new iGaming market in 2024. State Sen. Joseph Addabbo Jr. has declared his intention to reintroduce a gambling bill that authorizes casino gaming, iLottery, and poker. The bill could help fill a $9 billion budget gap for New York behind a potential 30.5% tax on online casinos. State officials believe an iGaming bill could generate roughly $1 billion. New York, which offers regulated retail casinos, saw the industry face adversity at the end of 2023.
The Empire State faced a security issue in October that impacted at least three casinos across the state. In October, a cyberattack infiltrated New York’s video lottery terminals system, which is operated by Everi Holdings. The slot machines experienced operating issues that led to disruptions at Resorts World Hudson Valley Casino and the shuttering of Jakes 58 for three days.
