New York Sportsbooks Handled a Record $16.2 Billion in 2022
New York sportsbooks set a new national record by handling $16.2 billion worth of wagers during 2022. Online sports betting began in the Empire State on January 8 last year, and the country’s largest sportsbooks launched some huge welcome bonuses to mark the occasion. That helped the nascent industry generate $1.67 billion in wagering volume during their first month of trading, and they maintained that blistering pace throughout the year.
Bettors in New York placed $1.62 billion worth of wagers during December, according to new figures from the New York State Gaming Commission. That took the total handle for the year to $16.2 billion, while the sportsbooks generated $1.36 billion in gross gaming revenue. That left New York comfortably ahead of New Jersey, Illinois, Nevada and Pennsylvania as the largest state in the country for sports betting last year.
The state takes a 51% tax rate on gross gaming revenue. It does not allow sportsbooks to deduct promotional spend before paying the tax – as is the case in several states – so it raked in $693 million in tax revenue from sports betting in 2022. New York has already earned more tax revenue than any other state in US history, despite launching online sports betting more than three years later than New Jersey and Pennsylvania.
Big Four Sportsbooks Dominate
New York capped the number of online sportsbook licenses at nine, meaning that some operators failed in their bids to launch in the state. The four leading sportsbooks dominated the market, accounting for 96% of the total handle in 2022. That left the remaining five – PointsBet, BetRivers, Resorts World, WynnBET and Bally Bet – to share just 4% of the market, calling into question their viability going forwards.
Market leader FanDuel accounted for around 40% of the handle, having accepted $6.5 billion in sports wagers during 2022. It also accounted for 48% of New York’s gross gaming revenue. The $650 million it held was equal to the next three competitors’ combined revenue. The runner-up spot went to DraftKings, which handled $4.5 billion and held $354 million in gross revenue.
Caesars Sportsbook made an initial splash by offering a $300 no deposit welcome bonus and a 100% deposit match bonus up to $3,000 when it launched in January last year. That helped it build up early momentum, and it was comfortably the third largest sportsbook in New York in 2022, with $2.8 billion handled and revenue of $215 million. BetMGM, which is the No. 3 sportsbook brand in most states, was a little late to the party in New York. It was a distant fourth, with $1.3 billion handled and $81 million in revenue.
State Senator Joseph Addabbo Jr., who drove the movement to legalize online sports wagering in New York, told local Action Network reporters: “It has been a remarkable, record-setting first year for mobile sports betting in New York, with only nine professional operators. I’m grateful to have joined others in the state in putting forth a product that New Yorkers deserved and appreciate the benefits to our economy, in addition to educational and addiction program funding.”
Could New York Legalize Online Casino Gaming Next?
The next step for New York could be the legalization of online casino gaming. Sen. Addabbo has trained his focus on it now, as New York lawmakers consider new ways to bolster the state’s coffers following the success of online sports wagering. He praised Gov. Kathy Hochul, who replaced Andrew Cuomo in August 2021, for her openness and willingness to consider new ways to broaden the industry.
He said that her administration has been “so amenable” about open discussions on mobile sports betting, licenses for downstate casinos and horse racing. Sen. Addabbo added that it was “something we couldn’t even fathom to think about under a previous administration.” A key priority is to roll out land-based casinos in the New York City area. Right now, all the retail casinos in New York are based upstate.
Sen. Addabbo wants three downstate casinos to be licensed in 2023, and he also plans to introduce a bill this year to legalize online casinos. Only six states have legal online casino gaming, but three of them border New York: Connecticut, New Jersey and Pennsylvania. It means that New Yorkers can cross the border and bet on slots and casino games in those states, which is counterproductive for the local economy. For that reason, Sen. Addabbo believes online casino gaming – known as iGaming – is inevitable in New York. He admits that iGaming is “where the real money is,” and he expects the state to take the plunge soon.
West Virginia Enjoys Record Month for Sports Betting
Many states have released figures this week confirming a record year for sports betting, including Iowa, Tennessee and Virginia. West Virginia is also gaining momentum, having just reported record trading figures for December. The state’s sportsbooks held onto a record $8.6 million in revenue during the month. That is small compared to New York, but it represents the best ever monthly performance in the Mountain State since legal sports wagering began in 2018.
Sportsbooks handled $66 million in December, which was a slight decrease on the $69 million wagered in November. However, it was a tough month for bettors, resulting in a hold of 13.2%. That led to the $8.6 million in revenue, which easily surpassed the previous record of $6.2 million. It also resulted in West Virginia scooping $738,000 in tax revenue – its best ever haul.
The market leader for December was Hollywood Charles Town, which hosts DraftKings, PointsBet and Barstool on its master license. It reported a handle of $29.1 million and revenue of $3.2 million. The Greenbrier was in second, with a handle of $23.7 million and revenue of $3.2 million. It hosts FanDuel, BetMGM and Golden Nugget. Mountaineer Casino, which has Caesars Sportsbook and BetRivers on its license, handled $3.85 million, with a revenue of $128,000.