Online sports betting sites in the Empire State had their biggest month yet in January, helped, no doubt, by playoff runs from two of the state’s National Football League franchises.
The New York State Gaming Commission reported recently that the state's mobile sports wagering handle for January was approximately $1.79 billion, up from $1.62 billion in December.
The nearly $1.8 billion in online sports betting in New York last month was an all-time high for the state, eclipsing the record set in January 2022, when mobile wagering began and handle was approximately $1.67 billion.
January's revenue from mobile sports betting in New York was a record as well, reaching $149.4 million. That topped the previous record of $148.2 million set in November 2022.
As a result of those record receipts, and because of New York's 51% tax rate, the state's cut was larger than ever last month. Just a bit over $76.2 million was owed in tax by the state's nine online sportsbooks, besting the $75.6 million paid in November.
FanDuel was the top operator by handle in January in New York, as the NY-based bookmaker took $726.7 million in bets during the month, up from $663.2 million for December. FanDuel also generated $81.9 million in revenue during the month.
DraftKings was second with $593.4 million in monthly handle, an increase over December's $523.9 million in wagering, and $39.8 million in revenue.
A high-water mark?
The big month for legal sports betting in New York was driven in part by the pair of playoff games played by both the Buffalo Bills and New York Giants. Football remains king in the U.S. sports betting industry, and four playoff matchups drew plenty of interest from gamblers in New York.
Weekly numbers regularly reported by the New York gaming regulator support that theory. The two weeks in which the two NFL teams played playoff games saw New York's weekly handle shoot up past $400 million. However, for the week ended February 5, wagering was $331.3 million.
The end of the NFL playoffs will put a damper on the monthly handle going forward in New York. So, too, could legislation that has recently been proposed and the state’s high tax rate.
There are bills circulating now in Albany and Washington, D.C., that aim to tighten advertising rules for sports-betting companies. But perhaps more pressing is a recent warning that New York's 51% levy on online sportsbook revenue could lead to worse odds for bettors.
“In a nutshell, we will likely be forced to offer a significantly worse value proposition for customers that are placing bets in New York,” DraftKings CEO Jason Robins recently told New York lawmakers. “This starts with the betting odds, where New York customers would receive worse odds than DraftKings offers in other states and that you can find in the illegal market.”
