New York sports betting tax: what the 51% rate delivered
New York taxes mobile sportsbooks at 51% of gross gaming revenue. Gaming Commission data shows what the state collected since 2022, and what the rate means for affiliates.
The New York sports betting tax takes 51% of mobile operators' gross gaming revenue. From the January 2022 launch through September 2026, bettors wagered $103.8 billion, sportsbooks won $9.41 billion before tax, and $4.82 billion went to the state, according to Gaming Commission reports. Operators, Caesars among them, have called the rate too high.
Results at a glance
| Metric | Value | Note |
|---|---|---|
| Tax rate and base | 51% of mobile sports wagering GGR | Remitted by the licensee, not the bettor. The Commission's tax column equals about 51% of GGR in every period through September 2026 |
| Tax collected, January 2022 to September 2026 | $4.82 billion | On $103.8 billion in handle and $9.41 billion in GGR (NYS Gaming Commission) |
| Latest full state fiscal year, FY2025/26 (April 2025 to March 2026) | $1.33 billion | On $26.16 billion in handle and $2.60 billion in GGR |
| Effective tax per dollar wagered, calendar 2025 | About 5.0 cents | Our sum of the Commission's monthly rows: $1.32 billion tax on $26.28 billion handle (4.95 cents without a January 2025 prior-period adjustment) |
| Licence fee | $25 million, one-time, per platform provider | PML § 1367-a; term up to ten years. The law required at least four operators live. Legal Sports Report counted nine sportsbooks in November 2022 |
New York's fiscal year runs from April 1 to March 31. Calendar-year figures below are our own sums of the Commission's monthly data.
Context: how New York set its sports betting tax
New York legalised mobile sports wagering in 2021, under then-Governor Andrew Cuomo, with a system Legal Sports Report described as designed to raise significant tax revenue. The law, section 1367-a of the Racing, Pari-Mutuel Wagering and Breeding Law, did not write a rate into the statute. It told the Gaming Commission to license the two highest-scoring platform providers, with room to add more, and one of the scoring factors was the share of gross gaming revenue each bidder offered the state. Under subdivision 7(d), the winners had to pay the same rate, and at least four operators had to be live.
The bids settled at 51%. Mobile betting went live on January 8, 2022, and the Commission has published weekly and monthly figures for each licensee since then. Mobile betting in New York is open only to licensed operators. For the wider state-by-state picture, see our guide to whether online gambling is legal in the US.
What they did
The regime has four moving parts.
Who pays. The New York state sports betting tax is a tax on the licensee. Each licensed platform provider remits 51% of its gross gaming revenue, meaning wagers taken minus winnings paid. The Commission's reports split GGR into "net revenue to platform provider" and "net revenue to education". The bettor's own tax on winnings is a separate income-tax matter.
How revenue is counted. The Commission reports GGR on a cash basis. Bets on future events are taxed when they are placed, and payouts are recognised when they are redeemed, so a strong futures month can lift tax early and a payout month can dent it later.
What it costs to enter. The statute set a one-time $25 million fee for each platform-provider licence, with a term of up to ten years. The fee went to the state lottery fund for education aid.
Where the money goes. Tax receipts are booked as net revenue to education. From fiscal year 2022/23 through 2025/26, $6 million a year of that went to problem-gambling education and treatment, and $5 million a year to a youth sports grant programme for underserved young people. The Commission's FY2026/27 report lists $12 million for problem gambling and $5 million for youth sports. The remainder is reported as net revenue to education.
Reporting is public: the Commission publishes statewide and per-operator handle, GGR and tax every week and month.
Results
The tax produced a large and rising cheque for the state.
| State fiscal year | Handle | GGR | Tax to the state |
|---|---|---|---|
| FY2021/22 (January to March 2022 only) | $4.84bn | $320.8m | $163.6m |
| FY2022/23 | $16.40bn | $1.46bn | $744.0m |
| FY2023/24 | $19.89bn | $1.78bn | $906.3m |
| FY2024/25 | $23.94bn | $2.14bn | $1.12bn |
| FY2025/26 | $26.16bn | $2.60bn | $1.33bn |
Source: NYS Gaming Commission statewide monthly reports. Tax includes small prior-period adjustments and fines.
The first full fiscal year beat the projection Legal Sports Report cited. That outlet put the state's own FY2023 forecast at $615 million; the Commission's report shows $744.0 million. On a calendar basis, from 2022 to 2025 handle grew 62%, GGR 87.5% and tax 91%, or 87.5% if you leave out a $23 million prior-period adjustment booked in January 2025. The difference between handle and GGR growth came from hold: sportsbook hold, meaning GGR as a share of handle, rose from 8.4% in 2022 to 9.7% in 2025. Each dollar wagered produced more GGR, and 51% of it went to the state. In 2025 that meant about 5 cents of every dollar bet.
On sports betting tax revenue by state, the rate is the cleaner comparison. Pennsylvania's Independent Fiscal Office, in an April 21, 2026 release, listed 2026 state rates from 7% (Nevada, Iowa) to 51% (New York, Oregon, New Hampshire, Rhode Island), so New York shares the top rate with three other states. The Tax Foundation's September 2025 table put Pennsylvania at 36%, Ohio at 20% and Michigan at 8.4% for online sports betting. We left out its collection totals because the table and its text disagree in places. For another new regulated market and its tax path, see our Brazil betting first-year case.
What did not work
The cost of the rate fell on operators and, through them, on marketing.
Operator margin. At 51% of GGR, a book keeps less than half of what players lose before paying for platform, data, payments and acquisition. Speaking at the Indian Gaming Association Mid-Year Conference, Caesars CEO Tom Reeg called the rate "ridiculous", Legal Sports Report wrote on November 21, 2022. In his view the state had taken "a big cut of a smaller pie".
Promotions. In November 2022, Legal Sports Report wrote that operators, Caesars among them, said the high cost of doing business made them less willing to grow in New York, and described them as pulling back on new-player offers and other marketing. We found no later primary data on offer levels, so treat this as a 2022 account, not a measured trend. How heavy taxes interact with acquisition budgets is covered in our sportsbook marketing spend case.
Attempts to change the rate. Two legislators, Gary Pretlow and Joe Addabbo, proposed in 2022 tying a lower rate to more licensed sportsbooks; it was not enacted. The Commission's tax column still equals about 51% of GGR through September 2026.
As of October 2026, the clearest recent signal is mixed. From April to September 2026, handle rose 6.9% on the same months of 2025, to $12.56 billion, but GGR fell 5.8% to $1.11 billion, and tax fell with it to $564.8 million. Hold dropped from 10.0% to 8.8%. One half-year of weaker hold is not a trend, but it shows the state's take follows operator results, not betting volume.
Senate bill S7876, introduced in May 2025, is often mistaken for a change to the operator rate. It concerns players: it would set New York's itemised deduction for gambling losses to zero. As of October 30, 2026 it sat in the Senate Budget and Revenue Committee and had not become law.
Takeaways for affiliates
Expect leaner offers in New York if operators follow the 2022 pattern. Check live offers before writing creative that depends on them.
Ask how your program defines net revenue. If it deducts gaming tax before calculating your share, 51% of each player's GGR is gone before your percentage applies. Compare that with a flat CPA using our guide to CPA vs RevShare vs hybrid deals.
Send traffic only to licensed brands. New York mobile betting is licensed only. Check the Gaming Commission's current licensee list before a campaign rather than relying on a launch-era roster.
Read the weekly reports. Per-operator handle and GGR are public. They show which brands are gaining share, which is useful when negotiating volume deals.
Recheck the rules before each campaign. Rates, earmarks and bills change. Track the instrument and its status, not headlines.
This case summarises public statutes and regulator reports. It is not legal or tax advice.
FAQ
What is the sports betting tax rate in New York?
Licensed mobile platform providers pay 51% of their gross gaming revenue from mobile sports wagering. The rate came from the 2021 licensing bids, and the Commission's tax figures stayed at about 51% of GGR through September 2026. It is a tax on the licensee, separate from any tax a bettor owes on winnings.
Is online sports betting legal in New York?
Yes. Licensed mobile sports wagering launched on January 8, 2022, and only operators licensed by the New York State Gaming Commission may offer it.
Where does New York's sports betting tax money go?
It is reported as net revenue to education, with fixed amounts carved out each year for problem-gambling services and a youth sports grant programme: $6 million and $5 million through FY2025/26, and $12 million and $5 million in the FY2026/27 report.
Do bettors pay tax on winnings in New York?
Yes. The IRS treats gambling winnings as taxable income, and New York residents include them in state income. Bill S7876 would remove New York's deduction for gambling losses but has not passed. This is not tax advice.
Sources
NYS Gaming Commission, statewide mobile sports wagering monthly report, FY2021/22 to FY2026/27 (data through September 2026): https://gaming.ny.gov/statewide-sports-wagering-monthly-report-pdf
New York Racing, Pari-Mutuel Wagering and Breeding Law § 1367-a (subdivisions 3 and 7): https://www.nysenate.gov/legislation/laws/PML/1367-A
New York State Senate, Bill S7876 (2025-2026): https://www.nysenate.gov/legislation/bills/2025/S7876
Pennsylvania Independent Fiscal Office, "Do Sports Wager Tax Rates Affect Betting Volume?" (April 21, 2026): https://www.ifo.state.pa.us/releases/929/Do-Sports-Wager-Tax-Rates-Affect-Betting-Volume/
Tax Foundation, online sports betting taxes by state (September 2025): https://taxfoundation.org/data/all/state/online-sports-betting-taxes/
Legal Sports Report, "Caesars CEO: NY Sports Betting Tax Rate 'Ridiculous'" (November 21, 2022): https://www.legalsportsreport.com/90173/ny-sports-betting-tax-rate-ridiculous/
IRS, Topic No. 419, Gambling income and losses: https://www.irs.gov/taxtopics/tc419
Rules checked October 30, 2026.
