Empire State of Play: New York’s Sports Betting Boom

The Rise of a Betting Powerhouse

Following the Supreme Court’s landmark 2018 ruling that struck down the Professional and Amateur Sports Protection Act (PASPA), a significant shift has occurred in the landscape of sports betting across the United States. This decision effectively dismantled the federal prohibition on state-authorized sports betting, opening the door for individual states to decide their own policies on the matter. Consequently, many states that had previously been reluctant to embrace gambling began to actively pursue the legalization and regulation of sports betting as a new source of revenue and economic activity.

Amidst this nationwide movement, New York has rapidly risen to prominence as a major player in the burgeoning legal sports betting industry. The state has undergone a remarkable transformation in its approach to sports betting, transitioning from a relatively late entrant to a position of national leadership in a remarkably short time. This ascent has been marked by significant legislative developments, the establishment of a robust regulatory framework, and the entry of many prominent sports betting operators.

The state saw unprecedented levels of betting activity, generating figures that not only surpassed previous records but also solidified New York’s reputation as the undisputed capital of American sports betting. These record-breaking numbers underscore the immense potential and rapid growth of the industry within the state, highlighting the effectiveness of its regulatory structure and the enthusiastic engagement of its residents.

A Record-Breaking Year by the Numbers

In the fiscal year from April 2024 through March 2025, New Yorkers wagered a staggering $23.94 billion on sports through online platforms. This figure is not just impressive; it is unprecedented. It represents a 21.9% increase from the $19.64 billion wagered the year before. No other U.S. state has ever reported such a high annual sports betting handle.

But the story doesn’t end there. Gross gaming revenue (GGR) for the same period amounted to $2.14 billion, up from the prior year’s $1.85 billion. This surge underscores the growing popularity and economic impact of online sports betting in the Empire State. This is another all-time high for the state, reflecting an industry in full bloom. The annual hold rate—the percentage of total wagers that sportsbooks retained as profit—clocked in at 8.94%. While slightly down from the previous year’s 8.98%, it remains among the highest in the country.

New York has found the sweet spot: an enormous player base, a competitive market of operators, and a regulatory structure that brings significant revenue back into public coffers.

Market Leaders: FanDuel and DraftKings Dominate

The competitive landscape of New York’s sports betting market is primarily led by two giants: FanDuel and DraftKings.

FanDuel’s commanding position within the New York sports betting market remains unchallenged. This prominent operator, a key asset of the global betting and gaming conglomerate Flutter Entertainment, demonstrated its market strength by processing an impressive $9.2 billion in wagers throughout the past fiscal year. This substantial volume of betting activity translated into a significant $969.8 million in revenue for FanDuel, achieved with a healthy hold rate of 10.54%.

Year after year, FanDuel has consistently proven to be the top performer in the Empire State’s competitive sports betting landscape. There are several factors that influence their success. Firstly, the company benefits from strong brand recognition cultivated through years of operation in the daily fantasy sports sector and its subsequent seamless transition into sports betting. Secondly, FanDuel has effectively leveraged its user-friendly and feature-rich mobile platform, which caters to the preferences of modern bettors who value convenience and accessibility. This strategic combination of brand strength and a superior digital experience has allowed FanDuel to consistently lead the pack in the New York market, solidifying its status as the dominant force in the state’s burgeoning sports wagering industry.

DraftKings, consistently holding the second position in the New York sports betting market, also experienced a successful fiscal year. The operator achieved a significant $8.6 billion in total handle, demonstrating the substantial volume of wagers placed through its platform. This activity generated $727.9 million in revenue, with DraftKings maintaining a solid hold rate of 8.46%, representing the percentage of bets retained as profit.

While DraftKings’ figures trailed those of market leader FanDuel, the gap between the two remains competitive and dynamic. This suggests that while FanDuel currently holds the top spot, DraftKings is a strong contender with a significant market share. The company’s ongoing strategy involves substantial investment in user acquisition, aiming to attract and retain a large customer base. Furthermore, DraftKings continues to prioritize technological advancements to enhance its platform and user experience. These strategic investments indicate DraftKings’ ambition to potentially challenge FanDuel for market supremacy in the years to come, setting the stage for an ongoing battle for the top position in the lucrative New York sports betting landscape.

Securing the third position in the New York sports betting market was Caesars Sportsbook, which processed a notable $1.45 billion in wagers. This level of betting activity resulted in $131.4 million in revenue for Caesars, achieved with a hold rate of 9.09%.

Following closely behind in terms of revenue were BetMGM and Fanatics. BetMGM generated $121.4 million in revenue from a larger handle of $1.71 billion, indicating a hold rate of 7.1%. Meanwhile, Fanatics recorded $120.2 million in revenue from a total handle of $1.61 billion, resulting in a hold rate of 7.48%. These figures illustrate a tightly contested middle tier of the New York sports betting market, with multiple operators vying for market share and demonstrating varying levels of betting volume and revenue generation.

The remaining licensed operators in the New York sports betting market, namely Rush Street Interactive, ESPN Bet, Bally Bet, and Resorts World Bet, occupied the subsequent positions. While these operators did not achieve the substantial figures reported by the market leaders, each managed to establish a specific segment within the state’s wagering landscape.

Rush Street Interactive demonstrated a notable presence, reporting $39.9 million in revenue generated from a total handle of $582.7 million. Following them, ESPN Bet recorded $14.4 million in revenue, although data for the month of March was not available for their reporting. Bringing up the rear in terms of revenue were Bally Bet and Resorts World Bet, with $7.6 million and $6.5 million, respectively. These figures highlight the diverse range of operators active in the New York market, each capturing a different level of market share and catering to potentially distinct segments of the betting public.

March Madness and Monthly Milestones

March 2025 was a crucial month, not just because it marked the end of the fiscal year, but because it nearly broke the state’s single-month betting record. Bettors placed $2.44 billion in wagers in March, falling just 2% short of January’s $2.49 billion record. Still, it was a 31.9% increase year-over-year, signalling sturdy growth.

Revenue for the month totalled $161.8 million—an impressive figure, even though it was 34.5% lower than January’s high of $247 million. The March hold rate came in at 6.63%, which, while lower than the yearly average, still represented a strong return for operators.

One surprise in March was the shift at the top. For the first time in over a year, DraftKings surpassed FanDuel in both handle and revenue. DraftKings took in $912.1 million in wagers and earned $62.6 million (6.86% hold), while FanDuel processed $862.2 million with $59.5 million in revenue (6.9% hold). Though a small difference, the symbolic victory illustrates how tight the race has become.

The States $1 Billion and Counting

With a 51% tax rate on online sports betting revenue, New York takes a larger share than any other state. That share amounted to over $1 billion in tax revenue in the 2024 calendar year alone. Since legalization, the state has pulled in more than $2.6 billion from mobile sports betting operators.

The lion’s share of this revenue goes toward education. These funds help support schools, public universities, and educational infrastructure. While some critics argue that schools shouldn’t rely on gambling revenue as a funding source, there’s no denying the tangible impact these funds have had.

Beyond education, sports betting tax dollars also fund problem gambling programs, youth sports initiatives, and efforts to ensure responsible gambling across the state.

Beneath the Surface: Problem Gambling and Risks

Not everything about New York’s sports betting success is cause for celebration. As betting has become more accessible and mainstream, concerns about gambling addiction have intensified. The sheer volume of bets placed, and the variety of available markets (including high-risk bets like Same-Game Parlays) can lure casual users into risky behaviours.

Calls for enhanced regulation are growing. Advocates want more funding for addiction treatment, better self-exclusion tools, and stricter advertising guidelines. In response, some operators have begun incorporating built-in tools for setting deposit and time limits, while the state continues to fund public awareness campaigns.

The Super Bowl 2025 served as a case study in both opportunity and risk. New Yorkers wagered $129 million on the game, which resulted in $41.3 million in revenue for sportsbooks. Critics noted the particularly high hold rate, raising eyebrows about the fairness of bet structures and the need for transparency.

A National Influence: Setting the Standard

New York’s foray into the realm of legal sports betting carries significant weight on a national scale, serving as a crucial case study with broad implications for other states across the country. The remarkable success achieved by the Empire State has established it as a benchmark for those states that are either in the process of launching their own sports betting markets or considering revisions to their existing regulatory frameworks. States with substantial potential markets, such as California, Texas, and Florida, are closely observing New York’s experience, seeking insights into its strategies and outcomes.

New York’s performance has notably demonstrated that a high-tax, high-regulation model for sports betting can still be remarkably profitable, effectively dispelling concerns that such stringent measures might stifle market growth or deter operators. This revelation is particularly relevant for states grappling with the optimal balance between revenue generation, consumer protection, and responsible gambling initiatives.

Furthermore, New York’s experience underscores the critical importance of balanced policy in the development of a thriving and sustainable sports betting ecosystem. The state has successfully navigated the complexities of the industry, managing to foster innovation among operators, encouraging the development of competitive and engaging platforms, while simultaneously prioritizing protecting consumers through robust regulations and maximizing public benefit through significant tax revenue and potential economic growth. As more states across the nation contemplate or implement their own sports betting legislation, New York’s comprehensive blueprint, which balances profitability with responsible practices, is likely to exert a considerable influence on the next generation of sports betting legislation, shaping the future of the industry nationwide.

What’s next for New York’s Sports Betting

Looking forward, several trends and challenges loom on the horizon. First, there’s talk of revisiting the tax structure. While the 51% rate has generated substantial public funds, operators argue that it’s unsustainable long-term. Lowering the tax could, they argue, create a more competitive environment and allow for better odds and promotions for users.

Second, there is increasing pressure to allow in-person registration and expand licensing. Currently, a limited number of operators hold licenses, and entry for new platforms is tightly controlled. Expanding access could drive innovation and provide more options for bettors.

Third, the role of technology is set to grow. As AI, machine learning, and predictive analytics evolve, sportsbooks will become more personalized, dynamic, and efficient. Real-time odds, tailored bets, and immersive live-betting experiences could soon become the norm.

Lastly, international partnerships and cross-border collaborations are on the rise. Global companies are investing in New York-based platforms, signalling a more interconnected future for betting worldwide.

A Growing Legacy

New York’s online sports betting market didn’t just break records in 2024-2025 it redefined what’s possible. From a fiscal perspective, the numbers are astounding. From a policy standpoint, the framework is proving durable. And from a cultural angle, sports betting has become deeply embedded in how New Yorkers engage with their favourite teams and leagues.

Yet, amid the growth and glamour, challenges remain. Problem gambling, fair play, and equitable access to the benefits of this booming industry must remain top of mind. New York is not just leading the country in dollars wagered; it’s also leading in responsibility and reform.

The Empire State of Play is here to stay. And as the rest of the country watches, it’s clear that New York isn’t just placing bets. It’s raising the stakes for everyone.