Gambling was restricted in New York in the past. In fact, the Empire State has historically had some of the strictest bans in the country. New York gambling law entails a long and complicated list of gambling violations and the corresponding punishments.
New York was not big on casinos for a very long time. In fact, it wasn’t until several years ago that the state began to take steps in the direction of legalizing gambling, online gambling in particular.
The Senate Bill 18
On January 9, 2019, legislators introduced Senate Bill 18, which would legalize online poker. It was the seventh year in a row for legislators in the state to discuss a poker bill. The underlying notion was recognizing concrete poker games as activities that are skill- and not luck-based.
In 2020, the New York Gaming Commission gave formative approval for online betting.
2022: $2b in wagers, $80m in tax revenue
25% of the whole country’s mobile bets on the Super Bowl were made in New York. The state earned almost $80 million in tax revenue. The total wagers made exceeded $2 billion.
Such are the attention-grabbing statistics since New York online casinos opened in early January this year. New York surpassed the Mecca of gambling, Nevada, as well as New Jersey, which was at the top in mobile sports betting after making them legal four years ago.
A sudden transformation
How did this gambling-averse state become the country’s largest bookmaking market? The whole gaming industry underwent a transformation after the pandemic. It also indicates a rising appetite for sports wagers not only in New York but also nationwide.
In 2021, more than $57 billion was spent on sports wagers, a historic high. Casinos and other betting platforms came back stronger than before the pandemic to record their highest-grossing year ever. Slots and table games, the traditional mainstays, led the way.
By February 13, 2022, New Yorkers had made more than $2.4 billion in bets. The figure in the week that culminated in the Super Bowl saw them wager a staggering $472 million.
A blizzard of promotions
The overwhelming selection of offers and promotions from betting platforms has contributed to or perhaps been the main cause of the betting frenzy. These include free betting credits, risk-free bets, and huge payoffs deposited in players’ accounts. As providers fight for a stake in the market, this could mean short-term losses for many companies.
Stunning tax earnings
However, mobile sports betting has been nothing but successful up to this point, including from Uncle Sam’s point of view. Service providers in New York pay a hefty 51% tax on their gross revenue. In February 2022, the state claimed $78.5 million from tax. Initially, the budget office expected to take only $49 million in the first quarter of 2022. New York also took in $200 million in license fees from companies.
A legal integration comes to life
Sports betting supporters believe the latest betting sites in New York reflect a legitimate integration of local bookmakers, offshore betting sites, and other previously illegal betting options. COVID-19 could have accelerated that transition, increasing the desire for online gambling after lockdowns and restrictions.
In addition, demand was fueled by the long wait in New York. Fans of gambling in the Empire State watched enviously as Pennsylvania, Connecticut, and New Jersey made mobile betting legal in recent years. Over two million players wagered ahead of the NFL playoffs after New York’s first four betting sites became active on January 8. Almost 250 million transactions took place.
