New York Operators Enjoy $151.9m Sports Betting Revenue in May
LISTEN TO THIS ARTICLE:Newly released figures from the New York State Gaming Commission show that the state’s betting market is continuing to thrive. Revenue for May was an impressive $151.9 million making it the second most profitable month this year.
The figures show that not only are local gamblers enjoying placing bets but also that, despite the high tax rates, there is still space for operators to grow. May’s revenue was not as much as the $162.8 million in March, but it was still up 38% year-on-year and far higher than April’s $138.8 million.
The wagering handle was down 12% from April at $1.35 billion, but it was still up 7% compared to May 2022. However, it is likely that the state’s ninth-month billion-dollar streak will end soon as the NBA and NHL seasons end, leaving just the MLB active out of the major leagues.
The operator FanDuel enjoyed the largest amount of revenue, at $76 million. DraftKings was second with $48 million, followed by Caesars with $14 million. With two operators enjoying such market domination, there is a chance that smaller companies may choose to leave the market, which ultimately would damage player choice.
Because of New York’s 51% tax rate, not all of an operator’s handle contributes to its revenue. A large sum goes towards good causes such as education and youth sports. In May, $6 million went to fund problem gambling treatment and awareness programs.
While operators are complaining about the tax rate, it is unlikely to change. Furthermore, it does not prevent operators from making significant profits in such a populous state. Nonetheless, some operators have reduced their bonuses and promotions in response to the tax rate.
In general, May’s results show that the New York betting market is healthy and growing. The 38% year-on-year growth suggests that customers are engaged and satisfied with the services on offer. As such, operators in New York should be able to look forward to many more months of high revenues.
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