NEW YORK, Sept. 15, 2020 /PRNewswire/ -- Online sports betting legalization could yield as much as $900 million in annual revenue, and $108 million in tax revenue for the state of New York, according to NY Sports Day projections.
New York stands to become one of the largest US markets for legal online sports betting, pending the passage of NY State Senate Bill 17D. The bill would authorize each of New York's seven retail casinos to operate a mobile sportsbook.
Online sports betting could make it onto a proposed revenue enhancement bill, which lawmakers are expected to discuss in an upcoming special session about the New York state budget.
Proposed Bill Would Tax Online Sports Betting at 12%
Senate Bill 17D proposes a 12% state tax on mobile sports betting revenue, as well as a one-time $12 million licensing fee paid by each operator. Those products could earn as much as $900 million in annual revenue.
The 12% tax on that revenue would yield $108 million in taxes for the state. New York would also take in $84 million in licensing fees.
"New York has a chance to become the biggest mobile sports betting hub in the US," said Geoff Fisk, analyst for NY Sports Day. "New Jersey holds that position right now, and some of that comes from New York bettors traveling to New Jersey to place a legal wager."
"If New York legalizes online sports betting, the revenue that's going to New Jersey stays in New York. Considering tourism and state population, New York could host the most lucrative mobile sports betting industry in the country."
New Jersey online sportsbooks brought in a record $668 million in betting handle in August 2020.
More Skins Could Make New York Sports Betting a Billion-Dollar Industry
If state laws allowed for two skins per operator, NY Sports Day projects that the expanded market could result in $1.3 billion in annual revenue for the state's online sports betting industry. The state would bring in $156 million in tax revenue yearly, and a total of $168 million in licensing fees from 14 skins.
"All seven New York casinos have sportsbook partnerships in place, so those seven brands are locked in if online sports betting gets the green light," Fisk said. "DraftKings and FanDuel already have a place in the New York market."
"Expanding to two or more skins per operator, however, could include brands like Barstool and PointsBet. The sports betting market would thrive with 14 or more brands in competition."
Contact Amber Hoffman, Editor of NYSD: [email protected]