New York outspends U.S. on sports betting by 78%: analysts

Ansh Pandey January 17, 2025

SiGMA news

New York is expected to have one of the highest per-person sports betting expenditures in the United States, according to a study conducted by crypto and Bitcoin casino platform Gamdom.

The analysis projects that New Yorkers will spend around $1,087 per person on sports betting in 2024, which is 78 percent higher than the national average for states with legalised betting. This puts New York in third place overall, behind only Nevada and New Jersey.

The report used sports betting data from the first half of 2024, applying an ARIMA model to forecast trends for the rest of the year. The projected total sports betting handle for New York is a remarkable $21.28 billion, reflecting the state’s substantial share of the growing market.

High spending despite taxes

The founder of Gamdom, Felix Römer, highlighted the impressive scale of sports betting in leading states, noting that the figures are significantly higher than those seen in the average state where sports betting is legal.

Despite this, New York’s sports betting industry is subject to one of the highest tax rates in the country.

Operators face a 51 percent tax on gross gaming revenue, significantly impacting their profit margins. This high tax rate contributed to the state collecting approximately $2 billion in tax revenue from sports betting in 2023.

Additionally, sports betting winnings are taxable at both the federal and state levels. The federal government enforces a 24 percent tax on winnings, while New York State taxes range from 4 percent to 10.9 percent, depending on an individual’s annual income. New York City residents face an additional municipal tax of 3 percent to 3.8 percent.

While these taxes are substantial, the state continues to show enthusiasm for sports betting, with its revenue generation proving the market’s growing importance.

Nevada leads the charge in sports betting

Nevada, however, remains the leader in per-capita sports betting spending, with an estimated $1,815 per person—198 percent higher than the national average.

Nevada’s total sports betting handle is expected to reach $5.8 billion. New Jersey follows closely behind New York, with a $1,398 per-capita spend and a $12.99 billion handle, demonstrating its strong market presence.

Massachusetts and Arizona round out the top five states, with per-capita spends of $1,041 and $929, respectively. Maryland, Illinois, and Colorado are also among the top ten states for sports betting, according to the study.