NY Sportsbooks Post Record 2024 Numbers, But Who’s Really Winning?

• New York sportsbooks recorded $22.70 billion in sports bets accepted during 2024.
• This equated to $2.05 billion in sportsbook revenue before paying taxes to the state.
• Bettors won over $20.65 billion while New York claimed $1.04 billion in tax benefits.
• New York sports betting grew 18% year over year in terms of handle and 20% in terms of revenue.

NEW YORK CITY – In 2024, New York cemented its place as the sports betting capital of the United States, with nearly $23 billion wagered and over $1 billion in tax revenue flowing into state coffers. These figures are staggering and were expected, but they also raise critical questions: Is this growth sustainable, and are bettors and sportsbooks operating in a fair market?

The State Wins Big, But At What Cost?

New York’s 51% tax rate on sports betting revenue is the highest in the nation, netting over $2.6 billion since launching mobile betting in 2022. That money funds education and infrastructure projects, making legal New York sports betting a win. However, it’s a win that comes with potential long-term consequences.

The tax structure is squeezing sportsbooks. Cutting back on promotions, sportsbooks are passing those costs directly to bettors.

Indeed, the increasing hold rate – the percentage of every dollar sportsbooks kept after paying out winning bets – reached 9.03% in 2024. That means for every $100 wagered, bettors lost $9.03 – more than half of Nevada’s 5.9% hold rate.

Bettors’ Losses Fuel State Gains

From January to December 2024, New Yorkers bet heavily on marquee events like the Super Bowl, March Madness, and the NFL season. But for many bettors, the returns were underwhelming.

Despite NY bettors taking over $20.65 billion in wins on the year, weekly bettors find themselves paying for entertainment rather than making smart bets. And these sentiments are reflected in the numbers.

Despite these challenges, legal sports betting has woven itself into the fabric of New York life. From Madison Square Garden to Citi Field, betting kiosks and online sportsbooks dominate conversations, with fans placing wagers before, during, and after games.

A shared experience with fans, friends, and even family members, sports betting has become a ritual. It’s not just about watching the game but being part of the action.

This cultural shift has brought both excitement and concern. Advocates argue that the accessibility of mobile betting apps makes sports more engaging. Meanwhile, critics worry about its impact on casual bettors who may not fully understand the risks or low-income bettors who fall victim to advertisements in hopes of striking it large.

With the amount of money bet on sports at an all-time high, the question remains: can this growth continue?

High hold rates and reduced sportsbook bonuses and promotions may alienate casual bettors. Likewise, the state’s tax structure can further cause consolidation until we’re dealing with an oligopoly from sports betting in NY. Add in player limiting and parlay subscriptions and New York’s incredible market could see a tipping point.

In short, if bettors feel they’re losing too much or if sportsbooks feel the squeeze, we could see growth slow or even reverse.

For now, the total amount of money bet in New York in 2024 proves they reign supreme, but the industry’s future may depend on balancing state interests with fairness for operators and bettors.

News tags: Citi Field | Madison Square Garden | Nevada | New York