One month in, New York’s digital gaming industry is already having a big impact on the US marketplace.
Online casinos went live in the state on January 16. Since then, NY mobile sportsbooks have had a month to adjust to the new competition.
Let’s look at where things stand with the five operators offering revenue-generating online casino games.
NY online casinos by the numbers
There are now five online casinos in New York. They launched with online sports betting and other digital gaming options back in January 2022. Here are the operators and their land-based partners:
- Caesars/BetMGM – Caesars Eastern Michigan
- DraftKings – Del Lago Resort & Casino
- FanDuel – Tioga Downs
- Rush Street/BetRivers – Rivers Casino & Resort
- Resorts World – Resorts World Catskills
All five began offering additional bonuses beyond sportsbook promotions one month ago. Those bonus opportunities arrive in the form of online casino welcome offers.
Here’s a quick look at how much action each operator has seen since going live.
Best Real Money Casinos Online (USA) - Don't Lose Out on ThisAgain, these numbers only include the first month of iGaming. However, we can make some assumptions about the state of the industry moving forward.
Assumption No. 1 | The five operators will be joined by others.
One constant in every state that has offered online casino games has been multiple operators. Even West Virginia only has a half-dozen or so, while in New Jersey, there are nearly two dozen.
We know that three more companies have been conditionally approved to offer revenue-producing casino games in the Empire State. These are the ones we know are coming:
- Bally Bet (taxi media company, partnering with the Rouse House in Seneca Falls)
- Penn National (owner of Hollywood Casino at Aurora)
- William Hill (partnering with del Lago)
It could be several months before they get up and running, but it’s a safe bet that all three will do so eventually. That will likely happen before this time next year.
This means that we will probably see nine online casinos operating in New York. It will more closely resemble what we have seen elsewhere.
Caesars and Boyd Gaming forming a single entity helps that process along for two of them. Their merged company will offer the two leading sportsbook apps as well as a strong casino app in App.
Craps Bet Explained - Tips, Odds, Payout & StrategiesAs for Bally Bet, Hollywood, and William Hill, they bring up the rear in terms of sportsbook handle. However, all three have usable apps, so they should find success in iGaming once they get their licenses.
Assumption No. 2 | Everyone will cannibalize their own sportsbook numbers.
This is an assumption based on what happened in other states. Remember, most of these companies began business here by offering sports betting.
However, once they add casino games to their inventory, many bettors will migrate to the casino. Why? Because casino games pay better than sports betting.
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Furthermore, sportsbooks give you the thrill of winning big. Casinos provide consistent winning if you play smartly. In fact, the house does win in the end, but it’s up to each individual player to become the house.
In New Jersey, for example, sportsbook handle makes up less than 20% of the combined monthly totals for all operators. The remaining 80% comes from casino revenues.
Keep that in mind when looking at the following handle numbers. Sportsbook action will almost certainly decrease once casino revenues ramp up.
Looking at the numbers from the top online casinos in NY.
We can compare apples to apples here because all five operators have been active for the entire month.
First, here’s a look at the overall sportsbook handles for February.
FanDuel once again led the way, although not by much. Its lead over second-place BetMgm was just $345,000.
However, when you combine the FanDuel sportsbook and casino numbers, the gap widens considerably.
FanDuel Casino handled $37.9 million last month, followed by by BetMgm ($16.2), BetRivers ($2.9), and the two newcomers—DraftKings and Rush Street—each handling less than $1 million.
Interestingly, Resorts World has yet to begin offering an online casino, even thought it already had the infrastructure in place to do so on day one.
Revenue numbers tell the real story.
Sportsbooks handle a lot of action, but they don’t usually produce a lot of revenue for the book.
That brings us to the more important number—revenue.
The taxable income for these operators is where the real money lies. Again, here are the sportsbook numbers for the past month.
Once again, FanDuel paced the field with just over $8.7 million in revenue. BetMgm managed $6.1 million to finish a distant second.
of the Best Legal Online Casinos in the USA for 2023Combining casino and sportsbook revenue changes the complexion of the leaderboard considerably.
FanDuel continues to pace the field with more than $9.9 million, but BetMgm is a distant second once again with slightly more than $5 million. More importantly, however, is the fact that BetRivers is now only $208,000 behind BetMgm for second place.
DraftKings checked in with $1.1 million, while Caesars finished the month with barely $700,000.
no deposit free credit casinoResorts World’s failure to launch an online casino may have something to do with these numbers. Just look at the difference between BetMgm and BetRivers.
It will be interesting to see if that trend continues once Resorts World finally enters the fray.
Tax revenue from NY online casinos.
Finally, let’s take a look at what all of these numbers mean to the state of New York.
A significant portion of this revenue goes to the state in the form of taxes. Here’s a look at the monthly totals for both sportsbook and casino revenue.
Remember, casinos paid out $8.1 million, while sportsbooks only contributed $417,000.
This is why tax revenue from casinos was more than double what the state received from sportsbooks.
The basic sportsbook tax rate is 51.5%. However, that figure drops to 10% for the first $500,000 in annual revenue from within the state. This means that most sportsbooks will actually pay around 20% in state and local taxes.
Meanwhile, casino taxes are a flat 51.5%. There are no exemptions or sliding scales.
In March, the state took in more than $18.3 million in revenue from the four Operating casinos. Add the $4.6 million from the online casinos, and Governor Hochul’s new gambling law produced tax revenue of more than $22.9 million.
draftkings pennsylvania casinoAdditionally, the six Orange-Catskill licensed harness tracks should soon being remodeling in anticipation of offering full commercial gaming. Once those facilities are operational, we’ll be looking at close to $100 million in annual tax revenue.
Not bad for a bill that Hochul signed into law less than a year ago.
Looking ahead to the future of the NY online casino scene.
Thus far, everything has exceeded expectations.
Top Deposit £5 Slots Casino Sites in the UK for 2023Sure, the state isn’t seeing the windfall that some predicted, especially since the tax rate is much lower than what New Jersey charges. However, any revenue that comes from thin air is clearly good news.
Also encouraging is the fact that this is only the first month of operations.
When the three upcoming operators receive licensing approval, that will represent 50% more iGaming revenue for the state. We might also see an uptick in sportsbook numbers once Resorts World gets its online casino operational.
Another thing to consider is the Super Bowl.
Everyone knows that football produces the most sports betting action. However, only BetMgm had an operational online casino last year.
This year, all five operators have been active for several weeks. Customers are familiar with the process, which should translate into higher sportsbook numbers. Additionally, we should see a substantial boost in revenue thanks to the increased presence of online casinos.
Watch for our mid-year report in July. By then, we should have a better idea of where things are headed.
One thing is certain, however. The five current operators are off to a great start, producing nearly $50 million in handle and $9 million in revenue during their first month of operation.
Not bad for a snowy January in the Northeast.
J.W. Paine is one of the most experienced writers at GamblingSites.com. He's been producing quality content since 2012.
Paine plays roughly once a month, so he understands the stamina it takes to be a regular player. This unique experience ensures an outside perspective on the game.
