New York mobile sportsbooks generated over $2.05 billion in revenue in 2024 despite a 51 percent tax rate. Proposed legislation aims to lower this tax burden to 35 percent by increasing the number of licensed operators to 14 by January 2026.
The current 51 percent tax on gross revenue in New York places extreme pressure on mobile sportsbooks. This rate remains the highest in the United States and keeps the market in a state of tension. Assemblywoman Carrie Woerner introduced bill A6013 to change this structure by adding more operators. The proposal aims to increase the number of mobile sportsbooks from nine to 14 by January 2026 and to 16 by January 2027. As more companies enter the market, the tax rate on gross revenue falls.
The legislation connects the tax rate to the number of available licenses. If the state reaches 13 to 14 operators, the rate drops to 35 percent. When the count hits 15 or more, the tax rate falls to 25 percent. Senator Joseph Addabbo Jr. also introduced SB 1962 to achieve similar goals. He believes more competition will help sustain the industry. New York is the most lucrative market in the country, with mobile sportsbooks generating over $2.05 billion in revenue from a $22.7 billion handle in 2024. This volume remains far higher than Illinois, which produced $14 billion in wagers and nearly half of the revenue seen in New York.
| Number of online operators | Operator tax rate |
|---|---|
| 9 | 51% |
| 10-12 | 50% |
| 13-14 | 35% |
| 15 or more | 25% |
Market competition and BetMGM incentives
BetMGM remains one of the nine legal operators in New York, alongside FanDuel, DraftKings, Caesars, Fanatics, BetRivers, ESPN BET, Bally Bet, and Resorts World Bet. The competition between these firms remains intense. In March 2026, FanDuel recorded a handle of $811,153,821, while DraftKings posted $758,394,794. This $52,759,027 difference shows how closely these two leaders compete for New York users. You should compare these major platforms before you place a wager.
BetMGM provides several specific promotions for new customers in the state. The code HANDLETOP allows users to get back up to $1,500 in bonus bets if their first bet loses. Users can also use the code SHNEWSGET to receive a $150 bet-and-get promotion. For a different option, the code SHNEWS1500 provides a 20 percent deposit match of up to $1,500 in sports bonus. Another code, NYPNEWSGET, gives new players up to $1,000 in no-sweat tokens. The NYPMAX1550 code provides up to $1,500 in bonuses plus $50 in BetMGM Reward Points.
The current tax rate impacts how much these companies spend on marketing. FanDuel President Christian Genetski stated that the company spends less per capita on advertising in New York than in other states. High taxes also prevent operators from deducting bonuses from their taxable revenue. This prevents the companies from using the same aggressive promotional tactics seen in New Jersey or Maryland. Because the effective tax rate exceeds 70 percent when including federal taxes, operators must be careful with their spending. An August 2025 wager of $119 million by a single bettor shows the scale of activity that these operators manage.
Revenue risks and legislative tension
The state relies heavily on sports betting revenue to fund public education and youth sports. New York collected more than $709 million in taxes in 2022. In 2025, mobile sportsbooks generated over $1.19 billion in tax revenue for the state. However, industry leaders warn that this revenue could vanish if the tax rate stays at 51 percent.
DraftKings CEO Jason Robins warned that his sportsbook might offer New York bettors worse odds than neighboring states if the tax rate does not decrease. He noted that the current market structure is built on an unstable foundation. Spectrum Gaming senior vice president David Isaacson testified that high taxes could drag down earnings and reduce wagering volume. He expects that operators will continue to limit promotional spending to protect their bottom lines. If the state lowers the tax rate to 35 percent, operators would need to produce $600 million more in revenue to maintain current tax levels.
The first year of legal, regulated sports betting in New York saw the nine licensed operators combine for nearly $16.2 billion in handle and $1.36 billion in gross gaming revenue. During the Super Bowl LIX period in February 2025, operators reported $47 million in revenue from a $155 million handle. The state continues to collect large sums, such as the $104 million collected in May 2026. These funds go toward education, problem gambling initiatives, and youth athletics.
Future operator expansion and market scale
New York could see a ninth sports betting operator join the market in 2026. Companies like bet365 and Hard Rock Bet have shown interest in the region. New entrants must pay $50 million for a license to operate. The 2026 FIFA World Cup also provides a catalyst for wagering growth. Analysts expect the tournament to drive massive activity because of the 48-team format and North American hosting.
In January 2026, New York sportsbooks recorded a handle of $2.44 billion. FanDuel produced $875.3 million in handle and $113.7 million in revenue during that month. DraftKings recorded $818.3 million in handle and $79.7 million in revenue. Fanatics produced $223.3 million in handle and $21.5 million in revenue. Caesars produced $160.7 million in handle and $11.5 million in revenue. Other operators like BetRivers and theScore Bet also participated, with the latter recording $54.1 million in bets during January.
The expansion of the market might include more than just mobile apps. The New York State Restaurant Association wants to see an option for kiosks at bars and restaurants. These terminals could provide additional revenue for the hospitality sector. Will the legislature approve these new retail options alongside the mobile expansion?