First Three Weeks of Mobile Sports Betting in NY Set to Shatter Previous U.S. Records
Just over $1 billion was bet through mobile apps during the first three weeks of legalization in New York State. This is likely to set a new national record.
The wagers on football, basketball, hockey and other sports generated $48.2 million in gross gaming revenues from Jan. 8-16.
A total of nine mobile sportsbooks will be available in the Empire State with five already up.
“New York has exceeded all our expectations,” said Mattias Stetz, COO of Rush Street Interactive Inc., referring to the first day of open betting. Rush Street runs the BetRivers wagering app affiliated with Rivers casino.
The one-day record for mobile sports wagering was previously set back in 2018 when bettors wagered $158.6 million in Nevada and New York is already exceeding this trend.
New York is the most populated state to allow legalized in-state sports gambling apps but it is also among the highest taxed.
The tax rate is expected to be somewhere in the neighborhood of 70%, one of the highest in the nation. This will provide a stranglehold preventing the New York State sites from offering much value.
All forms of gambling winnings are subject to a federal tax of 24% in the U.S. New York residents can expect sportsbooks to withhold an additional 8.82% of winnings over $5,000.
The mobile platforms do not provide specifics of their own profit margins, but have so far reported gross gaming revenues - money left after paying out winnings - of $91.5 million during the first three weeks in New York.
The state's mobile websites thus far have been able to offer outrageous introductory welcome bonuses despite the tax stranglehold. Such generous promos are likely to end over time.
- Gilbert Horowitz, Gambling911.com
