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New York Sports Betting Revenue Surges in May

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The latest figures from the New York State Gaming Commission reveal a remarkable $151.9 million in revenue, demonstrating the robust demand for sports betting and the enduring engagement of local bettors. The sector’s substantial momentum indicates a market that still has the potential to grow as operators consolidate their positions and fight the competition despite high tax rates.

Most Metrics Enjoyed Stable Growth

Although May’s revenues failed to reach March’s impressive 162.8 million revenue, last month was still very successful. Even without March Madness, gross gaming revenue (GGR) grew 38% year-over-year to $151.9 million. These results eclipse April’s GGR of 138.8 million, reflecting the seasonal nature of month-to-month comparisons.

Despite the impressive revenue growth, the wagering handle decreased by 12% from April. The $1.35 billion figure still marks a 7% year-on-year growth, but New York’s nine-month billion-dollar streak may soon end as the NBA and NHL seasons end and bettors only have the MLB to bet on. 

Operator-wise, FanDuel remains the undisputed champion in revenue, bringing in $76 million. DraftKings came in second with $48 million, while Caesars ranked a distant third at $14 million. These results paint a polarizing picture as the top two operators dominate the competition. While such stratification is expected, it may cause smaller companies to exit the market, potentially hurting player choice.

The Industry Remains Healthy despite Heavy Taxes

New York’s 51% tax rate means only a portion of operator handle contributes to their revenues. A significant amount goes to various good causes like youth sports and education grants. In May, $6 million of education revenue was distributed to problem gambling treatment and awareness programs, helping to offset the industry’s negative impact on society.

Despite pushback from operators, New York’s steep tax policy is unlikely to change. The state’s substantial population means that operators can still make millions, but many companies are hard-pressed to make a sizeable profit, even reducing their bonuses and promotions. However, New York lawmakers refuse to budge, especially given the industry’s steady growth.

Overall, May’s financial results reveal that operator concerns regarding sustainability remain largely unfounded. The 38% yearly growth indicates an engaged customer base satisfied with existing betting options. Strict responsible gaming measures and substantial funding for safe gambling initiatives are also instrumental in fostering trust among bettors, encouraging them to use legal and regulated platforms.

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