Across the legal sports betting industry, markets have seen major movement. New York is nearing $1 billion in lifetime state tax revenue since its launch in January 2022. In North Carolina, sports betting bill HB 347 has a favorable tax rate for sportsbooks. Over in Maine, Caesars Sportsbook has partnered with local tribes for sports betting.
Here we will take a look at all the recent events taking place in the legal sports betting world.
New York’s Historic Sports Betting Reign Continues
NY’s sports betting revenue report for April reveals that $1,544,465,378 was wagered during the month. Mobile sportsbooks saw $138,820,564 in gross gaming revenue (GGR). The Empire State collects 51% of the total GGR, seeing $70,798,487 for April 2023.
With April’s revenue accounted for, the total lifetime state tax revenue in NY is $978.4 million. This makes New York just $21.6 million away from $1 billion in tax revenue. New York is on pace to reach this milestone before the end of May 2023.
NY has been a dominating fixture in the sports betting industry since it launched and the market has not slowed down since. Nearly $25 billion in total wagers have been placed at mobile sportsbooks in New York. Total GGR since launch is close to $2 billion as well.
2022 saw $690 million in tax revenue during the year, already surpassing the $500 million annual projections set prior to the market launch. In short, New York sportsbooks have exceeded expectations.
So far in fiscal year 2023-2024, NY has already seen $1,751,860,740 in total wagers and $165,390,223 in total GGR. The growth is expected to continue in NY.
North Carolina Potential Tax Rate Examined
A look at HB 347 shows that online sportsbooks would be taxed at 14%. The measure also allows sportsbook operators to deduct promo offers for users. This clause will see deductions decrease annually until 2027.
If approved, the tax rate would mark North Carolina on the lower end of the industry. The national average is 19% for sportsbooks. NC would not be the lowest as Nevada taxes sportsbooks at 6.75%, but it is still on the lower end, keeping in line with the bulk of the industry.
Most markets tax sportsbooks between 10% and 15%, a range that is enticing to major sportsbook operators looking to enter a new market.
The measure also looks to see one of the highest licensing fees in the industry. Twelve online licenses are allowed under the bill and each applicant will need to pay $1 million for a license. Licenses will be renewed every 5 years under the measure.
Maine Meets Caesars
Caesars Sportsbook has become the first to gain a sports betting license in Maine. The operator gained market access via partnering with the Maliseets, Mi’kmaqs, and Penobscots tribes. These are three of the Wabanaki Nation in Maine. The fourth tribe, Passamaquoddy, has yet to announce a partnership.
Regulations grant each tribe its own sports betting license skin. With Caesars partnering with three of the four local tribes, the operator essentially controls the bulk of the market. Only one license is available with the Passamaquoddy tribe.
No official launch date has been set for when Caesars Sportsbook will go live. This is a good sign for locals in Maine, however, as their market is now one step closer to launching.