Publication date: February 4, 2022, 10:06 hours.
Last updated on: February 4, 2022 at 10:00 am.
Not only did New York break the record for dealing with sports betting in the first month that mobile apps became available. The Empire State has wiped it out, according to data released Friday by the state gaming commission.
The six mobile apps launched in January reported a total handle exceeding $1.62 billion as of last Sunday. This shattered the $1.3 billion handle that was reported in neighboring New Jersey in October 2021. It also took its neighbor New York three years to reach the $1 billion mark in one month.
New Jersey’s total includes its retail sportsbook. When you factor in the $21 million in the four New York brick-and-mortar book bets accepted for this month, the state’s handle comes close to $1.65 billion.
Mobile apps weren’t allowed to launch in the state until January 8, meaning the state needed just over three weeks to set a new high.
State Senator Joseph Adabo, a Queens Democrat, said in a statement Friday that he and other leaders are confident that mobile sports betting will succeed in one of the nation’s largest sports markets.
“But to be able to break the national sports betting record in one month in our first month, with basically only six sportsbooks, is rewarding and exciting,” Adabo, who chairs the Senate Committee on Racing, Games, and Betting, said. “Breaking this record proves that New York was ready for mobile sports betting, and we are providing our state with a new source of revenue, education and addiction. It can also give us an indication of where to go from here, especially with the Super Bowl in sight.”
Record revenue helps New York beat expectations
State-licensed mobile operators reported revenue through January 30 of $113 million. New York will collect 51 percent of that in taxes, or $57.6 million. Sports betting revenue in northern casinos is taxed at 10 percent.
Like the handle, New York tax revenue also set a new monthly record for a US state.
This means that in just one month of operation, the New York state government will have exceeded its forecast for revenue from sports betting. State leaders expected sports betting to bring in $249 million for the 2022 fiscal year, which ends in March. Those projections included the $200 million the state received in license fees for mobile betting.
The licenses will remain valid for 10 years.
Despite the strong start, state officials don’t seem ready to change any future forecasts yet. Hochul’s management budget plan includes capturing $357 million in sports betting tax revenue in fiscal year 2023. It expects $465 million in 2024, $493 million in 2025, and $509 million in 2026.
We look forward to a strong mobile sports betting scene for years to come, one that helps fund education in New York State as well as provide annual awards for sports programs for disadvantaged youth and educate and treat problem gambling.” Hochul spokesman Jason Gough said Casino.org.
All but 2 percent of the state’s tax revenue from mobile sports betting will fund New York’s education programs. Sports programs for underserved youth and problem gambling education and treatment programs will split the remaining funds.
Dealing with the dips in the last week
For the week ending last Sunday (January 30), New York mobile sports betting apps scored $449.3 million. This was more than $123 million less than the previous week’s total.
Possible reasons for this drop include fewer playoff football games for the week and the Kansas City Chiefs eliminating the Buffalo Bills the previous weekend.
Caesars Sportsbook bore the brunt of the decline, reporting a weekly handle of $128.1 million. That was more than $100 million less than the previous week. While the demise of billing may have contributed to Caesars’ downfall, the decline may also be related to Caesars ending its promotion for matching initial deposits of up to $3,000.
Despite the significant drop in the handle, revenue was down just under $5 million as Caesars reported $14.1 million in profits for the week.
FanDuel reported a larger handle than the Caesars, though $141.8 million was still down about $18 million. However, producer Flutter Entertainment has gone from revenue of $10 million for the week ending January 23 to a loss of nearly $565,000 for the past week.
DraftKings reported a weekly index of $102.2 million for the last week of January, down about $30 million from the previous week. Revenue only halved to $5.3 million.
BetMGM saw a slight drop from its first week, posting $37.5 million in its second week. This was nearly $3 million decrease in business. Revenue rose from $2.5 million to just over $710,000.
PointsBet posted an index of $29.5 million in its debut week. The sports betting company also announced initial revenue of $2.3 million.
BetRivers saw the smallest drop of any operator. Its $10.2 million handle was only about $1.4 million less than the previous week. However, Rush Street Interactive has gone from reporting revenues of nearly $785,000 two weeks ago to reporting a loss of nearly $395,000 last week.
Where is he going to New York?
Friday also saw the launch of the seventh mobile app in New York with WynnBET making an official announcement. Empire State has become the eighth market in the US for the Las Vegas-based sports betting operator.
The president of Wynn Interactive, Ian Williams, said in a statement that the live stream represented a “huge step” for the high-end gaming brand.
“New York represents a large population for our Wynn Rewards membership, and we are confident in our ability to compete in this market by providing first-class service and gaming experiences synonymous with the Wynn Resorts brand,” He said.
To celebrate the launch, Wynn is offering $200 in free bets to new players who deposit at least $10 and bet at least $10 on their first bet, either on a straight bet or a bet.