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New York profits $709 million from online sports betting in 2022

New York sports betting hearing

New York online sports betting amassed over $709 million in revenue in its first year, despite only starting on January 8, 2022. These figures have positioned the state as having the most lucrative online sports betting industry in the country.

The state had the largest revenue for online sports betting in the US, with about 20 million residents. New York recorded the creation of about 3.8 million unique betting accounts. A data analysis shows that about half of these accounts were created within the first two months of online sports betting in the state, that is, from January to February 2022. January recorded about 1.7 million accounts, and February recorded 550,000 accounts.

“In just one year, New York has become a national leader in providing responsible entertainment for millions while bringing in record-shattering revenue,” Governor Kathy Hochul said in a statement.

According to reports, the state revenue exceeds $709 million if one were to add the license fee that was paid by operators for a 10-year period. The state regulator charged the sports betting providers a fee of $25 million for a 10-year operation in the state, which amounts to about $200 million.

Since starting sports betting in January last year, records have shown that operators have raised about $16.6 billion in bets, which raised their sports betting revenue to almost $1.4 billion. However, the state charges about half of this revenue in tax. That is, 51 percent.

However, operators have voiced that the tax rate is very high and are seeking that the regulator cut it down. This might be hard to implement, because summing the tax rate to 51 percent was a condition for the legalization of online sports betting, which was proposed by the state’s previous governor, Andrew Cuomo.

Probably the new government will succumb to the providers’ plight, which is still unforeseeable because other sectors in New York benefit from this revenue. The funds generated by the state are used to improve the education sector, creating reform programs for problem gambling. It is also used to fund youth sports programs, building more standard stadiums and other equipment to foster sports among youth.

Hochul said the New York sports betting industry has brought “revenue for education, youth sports, and problem gambling prevention.”

After each fiscal year, which runs from April to March, the state allocates $5 million for sports programs and disburses $6 million for problem gambling reform programs. The rest of the generated revenue is used to cover other aspects in which the state is deficient. This is most often used to provide basic needs for certain communities and families within the state.

“The additional revenue generated will help to ensure that we have a robust system of programs and services to address the needs of individuals, families, and communities across the state,” said the commissioner for the New York State Office of Addiction Services and Support, Chinazo Cunningham.

According to a report from GeoComply, these accounts were opened mostly for tournaments such as the National Football League (NFL), which had about 700,000 active accounts during that period. The NFL was followed by the FIFA World Cup Final, with 262,000 active accounts.

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