New York Generating Nearly Double The Revenue Of Former King New Jersey

In first six full months of wagering, average per-month NY tax revenue exceeded NJ’s six-month total
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There was never a doubt that New York, with its 20.3 million citizens, would surpass New Jersey, with its 9.3 million inhabitants, as the top sports betting state in the country if and when the Empire State launched mobile wagering. The questions were how quickly New York would take over, and by how much it would reign supreme.

The answers: immediately, and a lot.

The gaming industry now has six full months of data to compare New York against New Jersey, from February through July. (January was a partial month, with the first mobile bets taken Jan. 8, and the applicability of its numbers would be questionable anyway due to the overwhelming use of launch promotions in NY.)

Through these six months, the nine online sportsbooks in New York are consistently producing betting volume more than 50% greater than the 20 books in New Jersey, and revenue nearly twice that of the NJ operators. On a per-capita basis, however, that means the Garden State is still outperforming New York.

The truly profound difference, though, is in tax revenue. With New York mobile revenue taxed at 51%, compared to 13% for New Jersey, the taxes collected in New York over the first six full months added up to nearly 6½ times NJ’s tax haul.

The new handle and revenue boss

In terms of betting handle, New York has outperformed New Jersey fairly consistently. Both markets have declined since March, in expected concurrence with the sports calendar. Here’s a month-by-month handle comparison:

MONTHNEW JERSEYNEW YORK% DIFFERENCE
February$985,568,313$1,534,078,89355.7%
March$1,120,904,954$1,644,789,69246.8%
April$926,946,780$1,396,791,94150.8%
May$766,412,352$1,269,862,57065.7%
June$633,184,861$1,056,694,01266.8%
July$531,888,333$804,966,38151.4%

Total handle for New York over these six months came in at $7.71 billion, while New Jersey tallied $4.96 billion in bets. That comes out to 55.2% more handle in the larger, newer sports betting state.

The sportsbook revenue gaps are wider, suggesting that New Jersey bettors are sharper on the whole. Some have theorized that the NJ scene includes more than its share of out-of-state professionals. Here are the month-by-month revenue figures for each state:

MONTHNEW JERSEYNEW YORK% DIFFERENCE
February$30,873,369$82,149,599165.7%
March$66,404,370$114,956,20473.1%
April$50,345,808$104,535,898107.8%
May$61,594,016$110,418,07579.2%
June$39,245,213$72,441,40084.7%
July$45,007,343$73,880,41664%

The six-month revenue total in New York lands at $558.4 million, 90.3% higher than New Jersey’s $293.5 million. That’s not far off from New York’s 118% greater population.

Should 5% appear too small …

Whether New York’s 51% sports betting tax rate, tied with New Hampshire for the highest in the country, is sustainable for operators remains an open question. But in the short term, it has produced a windfall for the state. Here’s a month-by-month comparison of the tax revenue in New York and New Jersey:

MONTHNEW JERSEYNEW YORK% DIFFERENCE
February$4,292,710$42,026,898876.7%
March$8,238,237$58,351,264609%
April$6,425,923$53,151,656730.5%
May$7,998,017$56,055,234601.3%
June$4,913,338$36,954,884654.1%
July$5,824,135$37,449,746543.5%

The total tax revenue for New York from February through July: $284 million. For New Jersey: $38 million. As noted above, that equates to a difference of 647.5%.

The average monthly tax collection for New York exceeded the six-month total in New Jersey.

From the moment mobile went live in January, New York has been the sports betting capital of America. That’s a title it figures to hold on to until California legalizes and launches online wagering. And the title of sports betting tax revenue champion is one New York may never relinquish.

Photo: Shutterstock

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