Evaluation of the Expansion of the Sports Betting Market in New York

• A New York senator has introduced a bill to allow for bets on league or athlete awards
• Coin toss bets would also be permitted
• Season-long prop bets, such as team win totals, will also be allowed under the legislations

New York’s sports betting market is the largest in the world…so why not try to make it even larger?

Sen. Joseph P. Addabbo Jr. introduced SB 2616 this week, which will allow for season-long proposition bets and future award winners.

New York sports betting law currently prohibits bets on league awards, such as the MVP or rookie of the year.

Expanding Sports Betting Markets

Addabbo, a longtime proponent of New York sports betting, has tried to pass similar legislation for the last several years. The newly proposed bill will allow for sports bets on “annual awards or honors for an individual athlete or team performance during or throughout a season.”

This means bets on MVP awards, rookie of the year, the Cy Young award, and other individual athlete awards will be legal.

The bill also allows for certain season-long proposition bets, with the following caveat:

“Provided however, that such in-game and season-long proposition bets shall be limited to those wagers that the commission determines not to be at risk of undue interference, insider trading of information, or other issues that could compromise the integrity and fairness of the sports wagering program.”

In addition, the bill specifically mentions that coin toss bets “that affect the gameplay of an event” shall be permitted under the new law, unless the New York State Gaming Commission prohibits the bets for reasons related to the integrity and fairness of the sports betting program.

Adding Opportunities to Already Massive Market

The proposed bill will allow the state to potentially expand its sports betting handle and revenue totals without licensing additional online sports betting operators. It could potentially open the market to greater growth event after setting records over the last year.

New Yorkers bet the most they ever had in 2024 since the state launched online sports betting in January 2022. New York online sports betting customers bet more than $22.6 billion, topping the previous high in 2023 of $19.1 billion.

New York online sports bettors wagered $22,624,505,166 in 2024, an 18.4% increase over the 2023 handle total of $19,103,521,572. It was the first time New York sports bettors wagered more than $20 billion in an entire calendar year.

Gross gaming revenues and tax revenues also followed suit, as the state experienced highs in both for 2024. The commission reported $2,044,005,840 in gross gaming revenues, an increase of 20.9% over the 2023 gross gaming revenue total of $1,689,883,800.

The most impressive total? New York took in more than $1 billion in sports betting tax revenue for the year, reporting $1,042,442,978 in tax revenues. The final total was nearly a 21% increase over the 2023 tax revenue total of $861,840,738.

The sports betting market in New York has been rapidly expanding in recent years, with the legalization of online sports betting in 2021 opening up new opportunities for both bettors and operators. This expansion has been driven by a number of factors, including the growing popularity of sports betting across the country, the potential for significant tax revenue for the state, and the desire to compete with neighboring states that have already legalized sports betting.

One of the key factors driving the expansion of the sports betting market in New York is the potential for significant tax revenue for the state. With millions of dollars being wagered on sports each year, the state stands to benefit greatly from taxing these bets. In fact, some estimates suggest that New York could generate hundreds of millions of dollars in tax revenue each year from sports betting alone.

Another factor driving the expansion of the sports betting market in New York is the growing popularity of sports betting across the country. With more and more states legalizing sports betting, there is a growing demand for online sports betting options. By legalizing online sports betting, New York is able to tap into this growing market and provide bettors with a safe and regulated way to place their bets.

Additionally, the expansion of the sports betting market in New York is also being driven by the desire to compete with neighboring states that have already legalized sports betting. States like New Jersey and Pennsylvania have seen significant success with their sports betting markets, and New York does not want to be left behind. By legalizing online sports betting, New York is able to attract bettors from neighboring states and keep them spending their money within state lines.

Overall, the expansion of the sports betting market in New York is a positive development for both bettors and operators. With the potential for significant tax revenue, the growing popularity of sports betting, and the desire to compete with neighboring states, there are plenty of reasons to be optimistic about the future of sports betting in New York. As the market continues to grow and evolve, it will be important for regulators to ensure that it remains safe and fair for all involved.