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Can Mobile NY Sports Betting Hit Lofty Tax Revenue Goal?

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It was never expected that the mobile NY sports betting market would be immune to the annual spring and summer revenue slowdown.

That said, April’s numbers are far from disappointing, especially from the state’s perspective. Mobile handle hit its lowest monthly mark since launching in January at $1.39 billion, but an overperforming FanDuel helped push mobile New York sportsbooks past $50 million in taxes for a second straight month.

How the next few months play out will show whether hitting $500 million in annual tax revenue is feasible or still a pipe dream.

NY sports betting tax haul to top US leaders soon

New York’s eight live operators have paid $216.6 million in taxes from the Jan. 8 launch through April. Just two US sports betting jurisdictions have reported more than that over substantially longer timelines:

Of course, the fact that New York taxes mobile betting at 51% has much to do with that quick growth. No doubt other states still working to legalize will see the impact of a higher tax rate.

The Massachusetts Senate certainly appears to have noticed. The Senate passed a bill that calls for a 35% tax on mobile betting with no promotional deductions, compared to a 15% proposal with deductions in the House.

FanDuel still building market share

New Yorkers continue to show their preference for FanDuel as the company presses the gas on customer acquisition.

  Handle Revenue Hold Taxes
FanDuel $599,485,964 $63,588,526 10.6% $32,430,148
DraftKings $327,051,970 $19,637,003 6.0% $10,014,872
Caesars $215,747,442 $11,803,413 5.5% $6,019,741
BetMGM $142,155,809 $4,980,574 3.5% $2,540,093
PointsBet $53,193,312 $1,468,571 2.8% $748,971
BetRivers $37,987,120 $1,809,025 4.8% $922,603
WynnBET $9,374,427 $518,705 5.5% $264,540
Resorts World Bet $5,781,833 $335,808 5.8% $171,262
Total $1,390,777,877 $104,141,625 7.5% $53,112,229

The brand accounted for 43.1% of all handle in April, up 2 percentage points from March. The other three operators in the top four all saw declines:

Bally Bet launch coming, per Bally’s CEO

The New York market should have all of its nine mobile operators live by the end of June.

The rollout of Bally Bet 2.0 started in Arizona this month and should hit New York by the end of the second quarter, Bally’s CEO Lee Fenton said.

Do not expect any big pushes from Bally’s to make up for lost time, according to Fenton: “We will be cautious as we keep a keen eye on marketing spend and how to navigate a high-tax environment in sports betting.”

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