New York State Comptroller Thomas DiNapoli has issued a report assessing the impact of the Empire State’s mobile sports betting sector which launched in January 2022. It found that the state generated US$727.4 million in tax revenue in the 2022-2023 fiscal year. However, the rise of its popularity has also spiked an increase in problem gambling-related calls.
On January 8, 2022, New York officially gave the start of its mobile sports wagering market which went to be a tremendous success. It allows for a total of nine private sportsbooks to offer and accept bets on various sports. Currently, Bally Bet is the only operator to be offline as a few weeks ago it went down to integrate new technology and should be back online soon.
Revenue Increase But at What Cost
In its recent report, the Comptroller discovered that in FY 2022-23, the market generated US$727.4 million in tax revenue, and the numbers continued to rise in the first quarter of the current fiscal year. However, this led to a 26% increase in problem gambling-related calls to the Office of Addiction Services and Supports from the previous fiscal year.
Mr. DiNapoli added that the rise in calls should lead to more attention on the impact of mobile sports betting, especially on younger demographics. He also explained gaming has expanded tremendously in the last several years, and due to its 24/7 availability via mobile wagering apps, problem gambling and addiction are certain to become more prevalent.
According to the state comptroller’s office, from 2011-12 to 2022-23, the state’s revenue from lottery sales and gaming revenue taxes rose from US$2.8 billion to US$4.8 billion. With most of the increase coming from new forms of gaming. Most of the taxes went to education. However, gaming revenue and employment have not yet returned to pre-unprecedented situation levels.
However, the emergence of online sports wagering has caused a massive drop in retail sports betting at the state’s four commercial casinos. Tioga Downs suffered a 58.7% drop, while Rivers Casino and Resort had a US$2.9 million revenue decline. The comptroller’s office explained revenues received by the four casinos upstate along with job projections — fell significantly short of expectations.
Empire State to Award Three Downstate Licenses
In its 2022-23 budget, New York included the issuance of three new commercial gaming licenses for the downstate region, which could boost in-person betting numbers in the state. One of the leading proposals belongs to Las Vegas Sands, which recently submitted a zoning application in the Town of Hempstead, in connection to its integrated casino resort plans for Long Island.
Meanwhile, a coalition of Roc Nation, Caesar Entertainment, and SL Green are bidding to launch a Caesars Palace Times Square in Manhattan, New York City. In May 2023, Roc Nation debuted several ads in an attempt to gain support from New York City residents for a license. It also released an open letter discussing the benefits of a casino in Times Square.
Source: Smith, Connor “Rise of mobile sports betting in New York leads to increased state revenue, more problem gambling-related calls, comptroller finds” Spectrum News 1, October 11, 2023
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