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New York Breaks Record for Most Sports Betting Taxes in a Month

Feb. 4, 2022, 8:26 PM

New York has broken the record for most sports betting taxes generated by a state in a single month.

The $57.6 million the state made in its first 23 days of online wagers is more than two and half times the previous monthly record held by Pennsylvania at $22.9 million in November 2021, the New York State Gaming Commission confirmed with Bloomberg Tax.

After just three weeks, New York now ranks fifth among states in all-time sports betting tax revenue, ahead of 22 others.

New Yorkers also set the record for most bet in a month with $1.62 billion in handle, besting the previous record of $1.3 billion held by New Jersey, according to a monthly revenue report released Friday by the gaming commission.

“The numbers aren’t surprising given it is a large market with dedicated sports fans, and a very favorable sports calendar around the launch,” said Casey Clark, senior vice president of strategic communications at the American Gaming Association.

Six of nine licensed operators are live in New York, which began taking its first legal online bets Jan. 8, after lawmakers expanded gambling through the 2022 budget.

New York’s 51% tax on online operator revenue is the highest in the country.

“The real test is whether this is sustainable long term for businesses to invest in sports betting in New York,” said Ulrik Boesen, a state tax policy analyst at the Tax Foundation. Will the returns be there with this kind of tax rate?”

To contact the reporter on this story: Sam McQuillan in Washington at smcquillan@bloomberglaw.com

To contact the editors responsible for this story: Jeff Harrington at jharrington@bloombergindustry.com; Butch Maier at bmaier@bloombergindustry.com