America’s biggest sportsbook operators made a high-stakes gamble of their own in 2021, accepting a massive tax on their online revenue in New York — far higher than the rates that were becoming typical in other states — in exchange for access to the largest legal market in the country.
That gamble is on the verge of costing the industry potentially billions of dollars.
New York’s sky-high 51 percent tax has allowed the state to collect a staggering $1.9 billion over just three years. Envious of that windfall, a few states are pursuing a much larger cut of the action than they currently receive, with more expected to follow.
