The latest data from the U.S. Census Bureau’s Quarterly Survey of State and Local Tax Revenue for the third quarter of 2023 shows that New York State is leading the United States in sports betting tax revenue.
New York’s 51 percent tax on gross gambling revenues is the highest in the nation, significantly contributing to its leading position in tax collections from sports betting. Tax revenues from sports betting collected are allocated to various state resources, such as social programs in sports and education.
The survey tracks a variety of state and local tax revenue sources, including property, income and sales taxes. The addition of sports betting to this list reflects the industry’s growing importance as a revenue generator for states. The report indicates a 20.5 percent increase in sports betting tax revenue from the same quarter the previous year, although it has seen a decrease from the $571.48 million recorded in the second quarter. In January, New York saw a record $211.5 million in sports betting revenue, showcasing the growing market.
With $188.53 million collected, New York contributes more than 37 percent to the national sports betting tax revenue, which amounted to $505.96 million for the quarter. This substantial share highlights New York’s dominant position in the national sports betting market, which broke the $2 billion handle mark twice in three straight months between October and December.
“Over the last two years, New York is the clear leader in providing responsible entertainment for millions while bringing in record-shattering revenue for education, youth sports and problem gambling prevention,” Gov. Katie Hochul said in a press release on the two-year anniversary of legal sports betting. “I look forward to this third year of our successful gaming policies that deliver top-tier mobile sports wagering experiences. We will continue to generate revenue that will enrich the lives of New Yorkers, all with important safeguards in place to help those who need it.”
After New York, Indiana was the second-largest contributor, with $38.6 million in sports betting tax revenue for the third quarter. Ohio ($32.9 million), Illinois ($32.4 million) and Pennsylvania ($28.8 million) followed.
