Taxes on mobile sports betting in New York generated $727.4 million in the 2022-23 fiscal year and have continued to grow in the first quarter of the current fiscal year, according to a new report from state Comptroller Thomas DiNapoli.
The rise of mobile sports betting, though, also led to a 26% rise in problem gambling-related calls to the Office of the Addiction Services and Supports from 2021-2022, according to the New York State Gaming Commission. This, DiNapoli said, should lead to more attention on the impacts of mobile sports betting — particularly on younger people.
“Gaming has significantly expanded in the state in the last several years,” DiNapoli said in a statement. “With the ease and 24/7 availability of mobile betting apps, problem gambling and addiction are poised to increase.”
What You Need To Know
- Taxes on mobile sports betting in New York generated $727.4 million in the 2022-23 fiscal year and have continued to grow in the first quarter of the current fiscal year
- But the rise of mobile sports betting also led to a 26% rise in problem gambling-related calls from 2021-2022
- Increased mobile sports betting has also led to a significant decline in revenues from in-person sports wagering at New York’s commercial casinos
Research indicates there are higher gambling problem rates when people mobile bet and OASAS increased spending on problem gambling services by nearly $4 million over the last three years. Working with OASAS, the state Gaming Commission must send annual reports to the governor and legislature on the impact of mobile sports betting on problem gambling.
From 2011-12 to 2022-23, state revenues from lottery sales and gaming revenue taxes grew from $2.8 billion to $4.8 billion, according to the state comptroller’s office, with most of that increase stemming from new forms of gaming being introduced. Of the $4.8 billion brought in, 95% went to education.
But gaming revenue taxes and gaming industry employment levels still haven’t returned to their pre-pandemic levels, according to the state comptroller’s office.
So far, mobile sports betting has outperformed the state’s projections; for 2022-23, collections were estimated at $357 million, but ultimately totaled $727.4 million. The higher collections were a result of the number of licenses issued to mobile sports betting providers and higher tax rates, the state comptroller's office said. That trend is likely to continue, with a 6.9% revenue increase expected over the next four years.
The rise of mobile sports betting, though, has also led to a significant decline in revenues — 45% in 2022-23 — from in-person sports wagering at New York’s commercial casinos. Tioga Downs in the Southern Tier saw the largest drop at 58.7%, while Rivers Casino and Resort in Schenectady had a $2.9 million revenue decline, according to the state comptroller’s office. Revenues received by the four casinos upstate — along with job projections — fell significantly short of expectations, too, the report said.
Still, the 2022-23 state budget allowed the creation of three new commercial casinos downstate. Other recent proposals to expand gaming include authorizing online casino gaming and doubling the number of video slots at a casino/hotel on Long Island. These proposals could further cut into casino revenues as fewer people would likely travel to bet, DiNapoli said.