Sports Betting

New York and New Jersey lost $2.9 billion to illegal mobile sports betting markets in 2023

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New York and New Jersey pic

The Campaign for Fairer Gaming and Yield Sec released a report that claims New York and New Jersey lost a combined $2.9 billion in revenue to illegal operators in 2023. Last year, both states surpassed $1 billion in total sports betting revenue. New York led all legal betting states with $1.7 billion in operator winnings. New Jersey was not too far behind, surpassing $1 billion in 2023. This report also claims that $7.07 billion in combined revenue was lost between New York and New Jersey. 

That $7.07 billion is roughly 20% of the $40.92 billion that was estimated to be won by illegal operators. Including mobile sports betting and internet casino gambling. Derek Webb, the founder of Campaign for Fairer Gaming, had this to say.

The dominance of illegal online gambling operators remains unchallenged, despite the expansion of legal gambling,” said Webb. “Sector-friendly legislation, regulation, and tax rates have not made much of a dent. Despite wildly different legal regimes, these three states continue to accommodate over 800 illegal operators, who operate with zero regard for state law.”

New York lost $1.9 billion in mobile sports betting revenue from illegal operators in 2023

January 2022 was the first instance of New York allowing mobile betting in the state. In no time, the Empire State became the biggest commercial market in the United States. Nine mobile operators combined to generate $1.69 billion in revenue and a $19.1 million handle in 2023. Using an 8.9% hold that operators had in 2023, it’s estimated that New York lost $1.91 billion in revenue. That’s approximately $21.54 billion worth of wagers they additionally lost out on due to illegal markets. 

New York also has a 51% tax rate on all digital sportsbooks. Meaning that the state missed out on an additional $972.1 million in tax revenue. In 2023, New York collected $861.8 million in 2023 and crossed the $2 billion mark in total taxes raised. The Empire State is still trying to legalize an iGaming market.

New Jersey lost $1 billion in mobile sports betting revenue from illegal operators in 2023

Nevada was the first state to legalize sports betting in 2018 and New Jersey was quick to follow. However, the Garden State has one of the most mature online gambling markets in the country. That’s because they launched Internet casino gaming in 2013. Illegal mobile sportsbooks in New Jersey collected $996 million in revenue. Legalized markets in New Jersey saw $962.4 million in revenue in 2023. With the 8.4% hold New Jersey had last year, they lost an estimated $11.84 billion in wagers to illegal mobile sportsbooks. Additionally, they missed out on $129.5 million in tax revenue. Since New Jersey legalized the online casino market in 2013, the state has 43 operators.