New York’s legal sports betting debut rakes in billions in first weeks
The numbers reported by the New York Times on the money moving through New York’s newly operational legal betting system are staggering. There have been at least $2.4 billion in wagers in less than six weeks, $80 million in tax revenue and 25% of the United States’ entire online super bowl wagers.
New York is quickly becoming one of the most relevant states when it comes to legal online sports betting since it became legal in the state in early January.
The massive demand for legal betting is something that New Yorkers have been wanting for a long time, and now that they’ve finally gotten it, they’re taking full advantage.
Why this is a good thing
On top of allowing New Yorkers to bet with no legal ramifications, the opening of New York’s legal betting has allowed the state to rake in millions of dollars in taxes. In a state with the most populous city in the country and one that’s seen a rise in both crime and homelessness over the past few years, more money going to the government can only help.
This massive influx of cash will afford the state government the opportunity to fund more public works projects and improve the lives of their lower-income residents, all while having to do virtually nothing to earn it.
This is a result of the effect the pandemic and subsequent lockdown had on the New York sports and gaming industries, in addition to their effect nationwide and worldwide.
The demand was there but there was no supply, and now in seemingly a blink, you have both. The week of the Super Bowl alone in New York state raked in $472 million.
New York sports fans are finally able to make wagers, and for the state economy this has only been a good thing.
The only ramification is that gambling addiction numbers are up statewide. When it comes to the ease with which bets are able to be placed these days, this is always an assumed risk, but the pros definitely outweigh the cons here.
Addiction is obviously an awful thing, but it’s just the nature of sports betting. The fact of the matter is that this is making the state and nation multiple millions and is allowing for increased recreation for Americans.
Industry implications
The Empire State’s gambling craze is obviously a good sign for the legal betting industry in the US. The sheer amount of wagers that have already been made is mind-boggling and this only reinforces the industry’s upward trajectory throughout the states.
The amount of money that this industry has produced in one state alone is evidence that this is only going to spread to other states. California, which is the most populous state in the country currently has legislation on the table for the November midterm elections to make sports betting legal.
Legislators in states who have yet to push to make betting legal would be wise to take notes from New York. On paper the money looks too good to be true, but it really is.
The state of New York has proven in spades that this is an incredibly viable way for a state to create revenue simply by allowing its citizens to pursue a recreational activity.
While said activity can certainly have debilitating effects, the benefits for any given state’s government are too good to pass up on.
Don’t be surprised if these revenue numbers only increase statewide with each passing week, and with March Madness on the horizon, the amount of wagers are about to be off the charts.
