As expected, New York’s sports betting market had lots of anticipation and excitement. One thing to take into consideration is that technology is not perfect, but there were over 17.2 million transactions over two days of the operating beginning.
New York’s Sports Betting Market Maybe the Industry’s Biggest Asset
According to Lindsay Slader, GeoComply’s marketing director, New York City’s five boroughs’ volume exceeded 8 million. Many expect the sports betting volume to continue as the NFL post-season will begin shortly.
The National Championship between Alabama and Georgia most likely gained a lot of attention in the state. The Buffalo Bills also opened as a -4.5 favorite against the division rival New England Patriots. The Bills and FanDuel entered a multi-year agreement as FanDuel will gain access to the Bills marks and logos for marketing purposes as well as in-game branding and activations at Highmark Stadium.
New York will be the most populous state in the country that will offer a form of legal sports betting. New York is home to approximately 20 million people, and 8 million people live in New York City alone. This is the nation’s biggest city.
New York is also home to the largest tax rate on revenue in the sports betting industry, as it is slated at 51 percent. Neighboring state New Jersey’s sports betting handle had benefited from residents of the Empire State as the numbers topped 20 percent of the handle due to those from New York.
Expect that more residents will likely remain in the state with sports betting being legal now. Caesars, DraftKings, FanDuel, and BetRivers were the first four operators to get the green light to accept wagers in the state. BetMGM, WynnBet, PointsBet, and Genting’s Resorts World will be the next in line.
These operators will be approved on a rolling basis. Looking at the first twelve hours of launch from 9 am to 9 pm, the numbers were stunning as they reached unprecedented levels in the sports betting industry.
New York’s transaction volume was 5.8 million in that span. Pennsylvania was in second place with just 2.3 million. New Jersey (2.1 million), Michigan (1.6 million), Illinois (1.1 million), and Arizona (1 million) followed.
What’s the Potential for the Empire State
Mobile sports betting is expected to bring in a lot of revenue for the state. Vixio GamblingCompliance projects that New York’s sports betting market could reach a gross revenue of $667 million this year and annual gross revenue of $1.1 billion by 2025, which would be a record in the industry. On-site betting in the state was approved in 2019.
FanDuel CEO Amy Howe also added that the launch was perfect timing for everyone involved as the sports betting schedule is very favorable. Bettors will no longer have to travel out of state to place a few bets on different sports and can do it at their own comfort with a mobile device.