Historic May Sets Major Milestone for New York Sports Betting Market

Sports Betting continues to grow in the Empire State.

The New York State Gaming Commission announced that the state recorded over $103 million in tax revenue for May. That is the state’s second-highest total since launching in January 2022.

The impressive May total means the state has now eclipsed $2 billion in tax revenue from sports betting. No other state has come close to matching that total, with Pennsylvania posting the second-highest tax revenue total at $541 million. That only further entrenches the state as the country's most profitable sports betting market.

New York’s impressive numbers are driven by its 51% tax rate on online sports betting operators, by far the highest total in the country. Other states have been discussing major tax hikes, and the state’s success will only fuel that effort.

Like in other markets, FanDuel led the way in May with $134 million in tax revenue, with DraftKings close behind at $123 million. Caesars is in third at $27 million, showing the massive gap between the two sports betting giants and the rest of the industry.

New York currently has nine online sportsbooks live in the state.

Can Florida Match New York’s Success?

Florida’s controversial gaming compact is finally safe from legal challenges after the US Supreme Court decided not to accept a legal challenge to overturn it. That means Florida online sports betting is there to stay, as is the Seminole Tribe’s monopoly over the industry.

The question now is how Florida’s sports betting monopoly will compete against a state like New York. Many expect Hard Rock Bet, which is operated by the tribe, to offer fewer sportsbook promos and watered-down odds. While that could lead to massive numbers for Hard Rock and Florida, it could also drive bettors back to offshore books. 

Florida has the population to rival a market like New York, but time will tell if its unique market can compete with others across the country.