The U.S. sports betting market continues to be on a wave of success. In quarterly U.S. gaming data released Wednesday, the industry association American Gaming Association (AGA) reported new record numbers for the sector.
According to the numbers, sports betting fans were extremely active between January and March. During the period, which includes parts of the final series of American soccer and basketball games, $26.34 billion was generated from legal sports betting in the United States. See statistics for past years here https://cricket360.bet/live-cricket-stream/.
In addition to sports betting, online gambling in the United States also showed a significant 53.9 percent increase in revenue. However, land-based gambling also grew on a large scale. The slot machine business grew 19.4%, and casino table games grew 42.7%.
Bookmakers' profits jumped to $1.58 billion in tandem with rising sales. Thus, they were up 64.6% over the previous year. Compared to 2019, the result seems even more impressive. There, the AGA reports an increase of 804.1 percent because of legalization, which has since occurred in more and more U.S. states.
New York sports betting records
The sports betting market in New York State, which was only legalized in January, is meanwhile rushing from record to record. In the first quarter, bookmaker sales totaled $4.87 billion.
One of the biggest beneficiaries of New York's sports betting boom is the state Treasury. According to its own records, the state treasury was able to record $263 million in incoming payments in the first three months of the year.
That means New York has quickly become the most lucrative market for tax authorities on the East Coast of the United States. States traditionally heavily represented in gambling, such as Pennsylvania ($253 million) and New Jersey ($229 million), meanwhile, were left behind.
With a 51% tax rate on online bookmakers' operating profits, many financial analysts question the success of New York's online sports betting business model. In addition to the high taxes, there are also costly advertising and promotional campaigns that cost bookmakers tens of millions. The companies expect the market to clear in the coming years and the remaining providers to make good profits. However, they may need a lot of financial stamina to do so.
Currently, there is some evidence that the New York sports betting tax boom will continue. In April alone, online bookmakers contributed another $53.1 million to the national budget. Therefore, fiscal policymakers anticipate that the estimated tax revenues of $357 million for fiscal year 2022/23 will be greatly exceeded. Thus, New York State should be a big winner of legalization.