New York Betting Revenue Grows Along with Problem Gambling

New York officially went live with mobile sports betting in January last year. Despite some conservative predictions, the market in the state grew exponentially, surpassing all projected revenues, positioning New York among the states with the highest revenues. While legal sports betting across the state helped deliver fresh tax revenue, the increase in problem gambling continues to raise concerns.

Recently, Thomas P. DiNapoli, the New York State Comptroller, revealed that the legalization of mobile betting resulted in an uptick in problem gambling-related calls. The legalized activity contributed $727.4 million in the form of taxes to the State Fiscal Year (SFY) 2022-2023 and continues to show positive results throughout the first quarter of the current fiscal year.

Despite the solid boost of proceeds from mobile sports betting, DiNapoli warned that the activity resulted in a 26% increase in problem gambling-related calls received by the Office of Addiction Services and Supports (OASAS) between 2021 and 2022.

Currently, New York taxes mobile sports betting at 51% of gross gaming revenue. This is one of the highest tax rates in the country, positioning the state together with Rhode Island and New Hampshire which offer the same levy. Upon legalizing and launching mobile betting, New York anticipated receiving some $99 million. In contrast, the activity generated $360.7 million in SFY 2021-22, completely surpassing the initial projection. As mobile betting continued to grow, for the SFY 2022-23, it contributed $727.4 million.

Understanding the Impact of Mobile Betting Is Vital

While there has been a notable increase in the number of problem gambling-related calls to OASAS, further research and data are needed. Current research showed that the rate of problem gambling is higher among demographics that use a mobile device. This is primarily due to the ease of use and accessibility. Yet, the first annual report from the state’s Gaming Commission “contained limited data on the impact in the state and demographic information on individuals affected by the addiction,” reveals DiNapoli.

“More attention should be devoted to understanding the implications of mobile sports betting, particularly on young New Yorkers.“

Thomas P. DiNapoli, New York State Comptroller

DiNapoli spoke about the growth of the gaming sector across the state in the last few years. He said that the availability of 24/7 services combined with easy access via smartphones is poised to increase gambling addiction and problem gambling. Finally, DiNapoli urged for more efforts in terms of research and understanding of the impact of mobile betting on younger demographics in New York.