Online sports betting operations are rapidly growing in the state of New York to funnel a rising level of tax revenues and simultaneously record the increased number of problem gaming cases. As reported, online sports wagering has grown by 51% in the fiscal year 2022-2023 to generate $727 million in tax revenues and a 26% higher number of gambling-related calls to the respective state’s hotline.
State Collected $4.8 Billion in Tax Revenues:
The increase in sports wagering operations is the side of the the New York gambling industry scales that went up. Therefore it seems natural that the land-based casino operations went down on the other side to keep the balance and reflect the customer preferences in the prior fiscal year. As Newsday reports, State Controller Thomas P. Di Napoli released a report on 11 October 2023 to indicate the industry trends and key indicators.
According to the source, these indicators show that the state collected about $4.8 billion in gambling tax revenues over the period ending on 31 March 2023. As reported, lottery contributed with $2.7 billion to account for more than half of the revenue but these operations have been relatively flat for years, according to Newsday. These are reportedly followed by video slot machines that generated around $1 billion in tax revenues. Mobile betting reportedly funneled $727 million to the state budget. It may represent the lowest revenue category but also the one with the most rapid recent growth.
$727 Million Generated Under 51% Tax Rate:
Further, the online sports betting figure is reportedly twice as higher than the estimates made by legislators when the tax regime was introduced for gambling revenues. According to Newsday, such a growth in tax revenues may be partially attributed to the New York’s tax rate being 51%, which is among the highest gambling tax rates in the United States. Regardless of the fact, sports betting has grown from the $361 million tax contribution made in the fiscal year 2021-2022 to $727 million in the fiscal year 2022-2023. DiNapoli reportedly expects growth to continue at a 7% annual rate for the next four years.
Gambling Industry Scales:
The increased online wagering is also expected to level in the current fiscal year to bring the scales closer to the balance with the in-person betting. Since the launch of online sports betting, according to the source, in-person sports betting at leading state casinos fell 45%, while the mobile betting has now recorded the growth of 51% in comparison to the prior year.
Problem Gaming Implications:
But virtual operations nevertheless include persons and the increasing visits to online gambling websites has resulted in the 26% higher number of problem gaming cases. “With the ease and 24/7 availability of mobile betting apps, problem gambling and addiction are poised to increase,” DiNapoli reportedly said. “More attention should be devoted to understanding the implications of mobile sports betting, particularly on young New Yorkers.” He added that the regulator, the New York Gaming Commission, should address the issue and ensure annual reporting to help minimize the impact.