GBGC: New York enters new betting era
The state is the largest one to go live so far with online sports betting.
Press release.- The state of New York began the new year with the launch of regulated online sports betting in the first week of January 2022. The launch coincided with the final games of the regular NFL season and the early indications were that it was a strong first weekend for betting.
GeoComply reported that New York eclipsed all other states for volume of transactions during a 12-hour period, with more than double the number of transactions seen in second-placed Pennsylvania.
With a population of almost 20 million people, New York is the largest state to go live so far with online sports betting, excepting the short-lived launch in Florida at the end of 2021.
But, as well as a large population, New York comes with a punitive betting tax of 51 per cent. It ties with New Hampshire and Rhode Island for the highest tax rate in the US. Only four of the nine internet betting brands went live on the first weekend (FanDuel, DraftKings, Caesars and BetRivers), so the battle for customers will only intensify when all are up and running.
The New York tax rate will make it difficult to sustain the level of promotions and free bets seen in other states, if an operator wishes to be profitable.
Neighbouring New Jersey’s sports betting sector could also be hit by the launch of online sports betting in New York. Prior to regulation, residents of New York would venture to New Jersey for sports betting, where the sector was regulated in 2018.
GBGC estimates that the US sports betting sector had a handle of $45bn in 2021, increasing to $142bn by 2025.
See also: Warwick Bartlett: “So far, the record on blocking has not been good”
