New York Sports Betting Handle Dips in September, Tax Rate to Blame?

New York State Gaming Commission reports a decline in sports betting handle in September. The state took in almost $330 million in the first week of the month but then it dropped by almost half. The decline is due to higher state taxes. However, the state sports gambling revenue was still healthy.

Orrick’s founder Kudon explains how New York”s sports betting market is adversely affected by the high sportsbook operators“ 51% tax. The argument is that at these tax rates, the operators there cannot afford to offer discounts and freebies to potential customers.

The data shows that a 51% tax rate does not work. As predicted, operators cannot afford to invest in promos, ads, or other tools to develop the NY market.

Next New York Legislative Session starts on January 4, 2023. New Jersey, Pennsylvania and Connecticut have higher sports betting tax rates than New Yorkers. New Hampshire has a lower 51% sports gambling tax rate. The market should adjust to the new legal sportsbetting industry.