Gambling is deeply ingrained in North American culture. Couple that with very high levels of internet access and the existence of online betting platforms, and the inevitable happens—people will gamble online. New York took the decision to make sure that rather than gambling revenues only pouring into the pockets of offshore operators, they wanted to have a slice of the profits, too. By allowing regulated, legalized sports betting platforms, they vowed to plow money into education and sports programs, set up schemes to prevent problem gambling and provide recovery services for those affected by gambling harms.
The gamble appears to have paid off, as Governor Hochul reported that more than $19 billion was wagered in New York state in the second year of operation. That spend resulted in tax receipts in excess of $1.55 billion and the vast majority of that is earmarked for education. A total of $862 million was added to the previous year’s $693 million. In addition, there were $200 million in licensing fees from 2022, bringing the total state income from gambling to $1.75 billion in two years.
“Over the last two years, New York is the clear leader in providing responsible entertainment for millions while bringing in record-shattering revenue for education, youth sports, and problem gambling prevention,” Governor Hochul claimed. “I look forward to this third year of our successful gaming policies that deliver top-tier mobile sports wagering experiences. We will continue to generate revenue that will enrich the lives of New Yorkers, all with important safeguards in place to help those who need it.”
When the United States Supreme Court struck down the Professional and Amateur Sports Protection Act in May 2018, many states moved to make wagering legal in the jurisdiction. While not all have gone down the online route, betting is now legal in some form or another in almost every state. There are obvious exceptions, like Utah and Hawaii, but the societal acceptance of gambling has seen the sector flourish.
New York State Gaming Commission Chairman Brian O’Dwyer commented,
“The record-breaking numbers speak for themselves: Governor Hochul’s smart gaming policies continue to generate billions of dollars for our schools, youth sports, and responsible gambling programs. The Gaming Commission looks forward to another beneficial year for New York and will continue to uphold the integrity of all regulated gaming in the state.”
While still a relative newcomer, New York has rapidly established itself as a major player. The state ranks third in overall handle (the total of dollars staked) behind veterans New Jersey and Nevada. New Jersey’s handle was $44.2 billion, Nevada’s $36 billion, and New York’s was very $35.7 billion. New York state had nine of the top ten all-time monthly sport wagering handles in the US – the potential of the state’s gambling industry is enormous. This huge growth in New York is likely not such a positive for The Garden State, as some argue it’s meant revenue being taken from New Jersey. However, we’ve seen them fight back to retain some of the largest businesses in the state’s economy. We even recently saw Netflix receive a huge tax break for their Jersey studio, as an attempt to keep the state economy thriving. Along with this, all kinds of tech start-ups and fintech companies are flourishing as a result. Combined with the continuous gambling revenue, New Jersey still looks fit and healthy.
State Senator Joseph P. Addabbo, Jr. of New York said,
“Mobile sports betting has proven to be a game-changer for New York, generating over $1.55 billion in tax revenue in just two years. This significant influx of funds will not only help to create new job opportunities, bolster our education system and improve the resources to assist individuals with an immediate or imminent gambling problem, which is critically important. By capitalizing on New York’s status as a sports mecca both nationally and globally, we position ourselves to provide our residents with a premier, safe, and immensely successful mobile sports betting product for generations to come.”
For the time being, players who enjoy casino games cannot gamble online for real money. However, social casino gambling is becoming increasingly popular and is legal across the country because there is no direct cash pot to be won. Social and sweepstakes casinos allow players to feel the thrill of casino games but do not involve real money wagering.
Sweepstakes have taken over casinos in terms of accessibility and fun. They offer a unique gaming experience where the player gets a chance to win a cash prize but does not place a real money bet. Social and sweepstakes casinos both offer casino-style games, but social casinos only use virtual currency, and the win is all about the thrill rather than a physical reward. Sweepstakes casinos offer games where players can use the Gold Coins they have won to play for wins that can be cashed in for real money prizes.
The authorities definitely see gambling in New York as a net positive. $5 million has been allocated to fund sports programs for young people, $6 million for the prevention of problem gambling, and treatment programs for those who have suffered harm from gambling addiction. The balance has been used to fund education aid. Unsurprisingly, NFL, MLB, NBA, and NCAAF are the sports that bring in the most wagers.
New York State Office of Addiction Services and Supports Commissioner Chinazo Cunningham said about the money available for the prevention and treatment of gambling harms,
“This funding is supporting our ongoing work to educate the public about responsible gambling, as well as increase access to help and support for those affected by problem gambling. We are continuing our efforts with our partners, including the Gaming Commission, to ensure that all New Yorkers can access the important resources they need in communities across New York State.”
Assembly member Gary Pretlow added,
“I am thrilled that the initial framework we proposed for Mobile Sports Betting in the Legislature was the foundation and catalyst for its success. We introduced a plan that would give gaming stakeholders an opportunity to engage with savvy New York sports patrons. As I commented last year when the numbers were record-breaking then. I’m ecstatic that the primary benefactors are education, our youth, and responsible/ problem gambling.”
Who knows what the future will hold for mobile gambling in New York? By all accounts, it would be tough for anyone to try to put the genie back in the bottle. It is reported that there are over five and a half million unique online accounts, which have been responsible for more than two-point-six billion transactions. It seems New Yorkers were just waiting for the chance to have a flutter!