New York Sports Betting Market Finally Launches
New York has officially joined the sports betting market on Saturday by launching perhaps the most prominent sports betting market in the industry. Residents in the Empire State have waited a long time as they will no longer have to cross state lines to place a mobile wager.
Mobile Sports Betting Has Entered New York
Five more operators are set to be approved at some point in time.
New York is home to the largest population with a legal sports betting market. Florida’s push did not last long as the operation was shut down.
Mobile sports betting is expected to bring in a lot of money for the state as Vixio GamblingCompliance projects that New York’s sports betting market could reach a gross revenue of $667 million this year and annual gross revenue of $1.1 billion by 2025, which would be a record in the industry.
Richard Schwartz, chief executive officer for Rush Street Interactive, stated, “The long-awaited launch of online and mobile sports betting in New York – the largest online sports betting market by population in the United States – is here, and just in time.”
The sportsbooks that can operate in New York will be subject to the highest tax rate in the country on gross revenue, which is set at 51 percent. Compared to other neighboring states, New Jersey implements a tax rate of 13 percent.
Some bettors were concerned that a higher tax rate would imply that the odds and what sportsbooks offer in the Empire State would differ from surrounding states.
Sen. Joseph Addabbo told ESPN this week, “So, we’re asking them to switch from what they were doing, try the New York product and then stay with us…, in a millisecond, they’ll go back to what they were doing.”
With the NFL postseason just weeks away, the state’s timing of launching its sports betting operation was perfect. The issue that comes with starting a sports betting market is the addiction that comes with it.
When sports betting began in Pennsylvania, helpline calls increased 285 percent at the Northeast Problem Gambling Resource Center.
Where Will the Tax Revenue Go Towards
Mobile sports betting tax revenue will be divided just like any other gambling revenue is throughout the state. The tax revenue is used for two primary purposes. Eighty percent of the tax revenue will be used towards elementary and secondary education and property tax relief.
For the first year, one percent of the mobile sports betting revenue will be reserved towards gambling and educating people about gambling addiction. This will increase to approximately $6 million per year.
Another one percent of the mobile sports betting revenue will go towards state grants for sports programs underserved youth. This will be approximately $5 million per year.
Having a sports betting market will also create new jobs in the state.