New York Mobile Sports Betting Becomes Major State Revenue Source

Mobile sports betting has emerged as New York State’s second-largest gaming revenue generator, surpassing $1 billion annually in taxes, according to a recent report. This growth has been primarily driven by mobile wagering since its 2022 legalization.

What Happened

Mobile sports wagering has become the second-largest revenue generator for New York State from the gaming industry, exceeding $1 billion per year in tax collections, according to a report released by State Comptroller Tom DiNapoli. This revenue stream now trails only lottery games in its contribution to state coffers (New York Post). The analysis found that the increase in gaming revenues over the past few years is predominantly attributable to mobile sports betting, while other forms of gambling have either declined or remained flat (New York Post).

The report specified that collections from the 51% tax on gross gaming revenue from sports betting increased by 78% between fiscal year 2023 and fiscal year 2026, rising from $727.4 million to $1.3 billion (New York Post). Since its launch in January 2022, a total of $91.2 billion in mobile sports bets have been placed, generating $8.3 billion in tax revenue for the state (New York Post).

Key Details

• Mobile sports wagering is New York’s second-largest gaming revenue source, contributing over $1 billion annually in taxes (New York Post).
• Tax collections from mobile sports betting increased 78% from $727.4 million in fiscal year 2023 to $1.3 billion in fiscal year 2026 (New York Post).
• Since January 2022, $91.2 billion in mobile sports bets have been placed, yielding $8.3 billion in state tax revenue (New York Post).
• There were approximately 7.2 million unique mobile sports wagering accounts in New York last year, primarily used by bettors aged 21 to 44 (New York Post).
• Over 2 million transactions occurred on mobile sports wagering platforms in 2025, with an average wager amount of $3,500 (New York Post).
• Basketball, football, baseball, tennis, and soccer collectively accounted for more than 90% of all mobile sports bets (New York Post).
• During the 2026 NBA Finals, over $1 billion in mobile sports wagers resulted in a net loss of $14.4 million in gross gaming revenue due to substantial winning payouts (New York Post).
• Gaming revenue from in-person sports wagering totaled $69 million since 2019, representing less than 1% of the total generated by mobile sports wagering (New York Post).

Why It Matters

The rise of mobile sports betting has substantially altered New York’s gaming revenue landscape, positioning it as a significant fiscal contributor to the state. This growth contrasts with other forms of gambling, which have seen flat or declining revenues (New York Post). The state’s 51% tax rate on gross gaming revenue from sports betting highlights its strategic importance for state priorities and revenue generation (New York Sports Betting Tax Rate Highlights How States Use Revenue). The volatility demonstrated during events like the 2026 NBA Finals, where high-odds winning wagers led to net losses in gross gaming revenue, underscores potential fluctuations in state tax collections despite high wagering volumes (New York Post).

What’s Next

The report highlighted the emergence of prediction markets, such as Kalshi and Polymarket, where most trading focuses on sporting events. The potential impact of this activity on mobile sports wagering and state revenues is currently unknown (New York Post). Litigation concerning the regulation of these prediction markets by state and federal governments will influence future state revenues (New York Post).

Originally reported by New York Post·Published 16 Sep 2026, 20:35