The New York sports betting wave is already witnessing the state’s industry surpass U.S. records in tax revenue following a mere three months of entering the market.
The month of March was always going to be an overloaded time for sportsbook operators throughout the United States. The recently established legality of New York fell just short of breaking their own state U.S. record for monthly online wagering. N.Y. residents went online for their first legal venture into wagering on the NCAA March Madness Tournament, and New York’s bookmakers took over $1.6 billion in wagers.
“Football is still king among bettors, but March is typically the busiest non-NFL month of the year,” commented the lead analyst for PlayNY.com, Mike Mazzeo. “March’s handle falling so close to January’s record is a sign that bettors remain highly engaged during major events, even though wagering expectedly slowed after the first weekend of the NCAA Tournament.”
Big Bucks from the Sportsbooks
New York’s online sportsbooks received $1.64 billion wagers during March, as stated by the New York State Gaming Commission. This was a 7% leap from February’s $1.53 billion, but it couldn’t break the U.S. record of $1.67 billion in online wagers that arrived during the state’s legal debut for operators in January.
However, sportsbook profits prospered much greater In February, claiming $114 million in gross revenue in March versus February, which garnered $82 million in gross profits. Operators enmeshed $56 million in revenue and implanted $58 million into state purses.
Since the state’s inception to legalize online sports wagering, $151 million has been accumulated for New York taxes. This figure exceeds Pennsylvania by $30 million, which injected $122 million into their state and local taxes in 2021, the previous U.S. record.
With New York’s online sportsbooks market producing $320 million in revenue from close to $5 billion in wagers, New Jersey, Illinois, Pennsylvania, and Nevada are the only states that have produced more in sports wagers (online and retail) in all of 2021.
“A seasonal shutdown will hit sportsbooks over the next few months, but it is hard to imagine a strong launch,” said the analyst for PlayUSA.com Network, Eric Ramsey. “The NBA playoffs, baseball, and major golf tournaments will keep bettors interested, but we’ll have to wait until football season for a similarly eye-popping number. Regardless, the state has clearly been the biggest winner so far.”
FanDuel Leads the Way
FanDuel took $673 million in bets as the reputable sportsbook operator continues to lead the pack. $58 million in gross revenue was generated from those bets – x2 higher than the $23 million the operator took in February.
DraftKings wasn’t far behind with $414 million in wagers, taking $22 million in gross revenue. However, this was a significant drop from January’s returns that reached over $50 million in profits.
“FanDuel’s start has been remarkable, producing more revenue in March than most states’ entire sports betting industries will,” Ramsey said. “In just three months, FanDuel has solidified its position as the market leader, and it will be a significant challenge for its rivals to eat into that early lead.”