Now that New York has given the green light to sports gambling, this pastime has well and truly entered the mainstream, with a record-breaking first month for wagers and tax revenues alike.
Lets look at why the $2 billion total spent on sports bets in the first 30 days they were legal in New York is such a significant benchmark, and what this means for the US gambling industry more generally.
New York overtakes New Jersey as largest sports betting market
For a while now, New Jersey has been the home of sports betting in the US, with sites like Gambling-NewJersey.com giving average gambling fans and high rollers alike a way to place legal bets on all sorts of sports.
However, with the $2 billion in wagers reported over the course of January 2022, New York has now knocked New Jersey off the top spot.
Of this total, the majority went towards bets on football games, with $600 million allocated for these events. Basketball was just behind this with $540 million worth of wagers, while the total for hockey was lower at close to $80 million for the month.
For comparison, the largest haul that New Jersey has managed in a month is $1.3 billion. New York does of course have a significantly larger population, so the disparity in wagering could be explained by this to a degree. Even so, this record sets an impressive precedent that bodes well for the long term future of online sports betting both in New York and across the US as a whole.
Tax revenues will make a major difference
One of the main motivating factors behind the campaign to legalize sports betting is that by doing so, the authorities can tax and regulate this industry, rather than leaving it to the black market operators that used to be at the wheel.
This is clearly a step in the right direction, since from the $2 billion in wagers reported in New York during the first month of legal online betting, an impressive $70 million in tax revenue is pouring into the public coffers as we speak.
It might not seem like much as a percentage of the total wagered amount, but it is worth remembering that the $2 billion doesnt equate to what the gambling operators actually earned; there will have been winners as well as losers, hence why gaming revenues were cited as $138 million for this period.
Further good news is that the state has earmarked tax revenues raised by sports betting to fund a specific set of initiatives, including grants for sports schemes aimed at youngsters, as well as services which cater to helping those who suffer from gambling addiction.
Convenience is king
New York may not be the first state to give online sports betting the go-ahead, but it is clearly demonstrating that there is plenty of appetite for this type of activity among consumers everywhere.
What is more, the explosion in sports betting is largely down to its online availability, and the convenience that mobile gambling brings with it.
As this industry continues to grow, and to make a positive economic contribution in places like New York and New Jersey, it seems like it is only a matter of time before more states follow suit in legalizing and regulating it in their own way.
Disclaimer:
- As per the Public Gambling Act of 1867, all Indian states, except Goa, Daman and Sikkim, prohibit gambling
- Land-based casinos are legalized, with certain guidelines, in Goa and Daman, as per the Goa, Daman and Diu Public Gambling Act 1976
- Land-based casinos, Online gambling and E-gaming (games of chance) are legalized in Sikkim under the Sikkim Online Gaming (Regulation) Rules 2009
- Only some Indian states have legalized online/regular lotteries as per and subject to the conditions laid down by state laws. Kindly refer to the same here
- Horse racing and betting on horse racing, including online betting, is permitted only in a licensed premise in select states. Kindly refer to the 1996 Judgement by the Supreme Court Of India here and for more information
- This article does not endorse or express the views of Qrius and/or any of its staff.