New York has reaped the rewards of mobile sports betting, but operators warn that the state’s high tax rate could put its success in jeopardy.
The heads of two of the largest mobile sports betting operators in New York, DraftKings and FanDuel, testified at a joint legislative hearing on Tuesday and urged lawmakers to lower the 51% tax on gross gaming revenue. The tax is the highest among states that have authorized mobile sports wagering.
In the first year of mobile sports betting in New York, more than $16.5 billion was wagered on sporting events. Thanks to the 51% tax rate, the state collected more than $709 million in revenue to support educational programs, youth sports and problem gambling treatment.
