SCHENECTADY — New Yorkers placed $603 million in online bets in the first nine days of mobile sports betting in New York, including $171 million in the first 39 hours alone.
The practice became legal in that state at 9 a.m. on Saturday, January 8. Data released Friday by the New York State Gaming Commission indicated that the four companies operating mobile platforms in New York State at the time made a total of 48.2 million. dollars of gross revenue. of the $603 million wagered through January 16, the end of the first full accounting week.
The state will claim a little more than half through a 51% tax.
One of the four companies, Rush Street Interactive, has a local connection: it runs in-person sports betting operations at Rivers Casino Schenectady and is a subsidiary of Rush Street Gaming, the Chicago company that owns Rivers Schenectady.
Rush Street International came in a distant fourth among the four mobile operators: $10.6 million in bets placed in the first nine days and $446,696 in gross revenue.
That compares to $257.7 million in wagers and $22.7 million in gross revenue for Caesars, $200.4 million/$14.1 million for FanDuel, and $134.4/10.9 million. dollars for DraftKings.
The figures do not indicate the actual money wagered or the profits reaped – large sums of free credits offered by the operators are counted as bets even if they are not the bettors’ money. Free bets lost by punters count as gross revenue for the betting platform, even if it is their own money that they recover.
Financial data first released Friday by the Gambling Commission does not track promotional credits given out by mobile betting operators, so there is no public window on how much platform operators are spending on start their new market. Promotional credit data is reported in neighboring Pennsylvania, a longer-established mobile betting market, and New York for commercial casinos.
Rush Street Interactive provided a comment from CEO Richard Schwartz on Friday:
“As the New York mobile sports betting market matures over time, we are confident that BetRivers’ user experience and award-winning customer service will retain players as they have in other markets.”
PlayNY editor Mike Mazzeo told the Daily Gazette on Friday that he could only speculate about the huge financial gap between Rush Street and the other three companies. But he noted that the other three seem to have invested heavily in free games and advertising.
“They don’t have that celebrity pitcher,” Mazzeo said of Rush Street International.
“I live in town – FanDuel is always in your face.”
Caesar’s offered huge deals to those using its platform and raked in a quarter of a billion dollars in wagers in the first few days. But they messed up their rollout promotions with unclear terms and language, Mazzeo said, leaving bettors frustrated and state officials wiggling their fingers.
“[State Sen. Joseph Addabbo Jr.] says it best – they need to pull themselves together,” Mazzeo said. Operators as a group need to use clearer language about their promotions, he added.
The huge sums of money suddenly flying through virtual sports betting in New York and the 650,000 unique user accounts created in the first weekend are cause for great concern for organizations that help compulsive gamblers.
Brandy Richards, team leader at the Northeast Problem Gambling Resource Center in Albany, said ubiquitous promotions across multiple media channels draw new users to an easy-to-use anywhere, anytime, no-money platform. real in the hands.
“We are already seeing an increase in calls to our resource center and our demographic is shifting to a much younger group of individuals,” she said via email Friday. “We are also seeing the impact this is having on those who have previously had problems associated with gambling. The deluge of advertising and promotional offers makes it difficult for them to sustain their recovery from gambling addiction.”
New York State has approved mobile sports betting as a way to create a new source of tax revenue for itself. Unlike casino tax revenues, no part of mobile phone revenues will be shared with municipalities.
The state had forecast $49 million in rolling tax revenue from Jan. 8 to the end of the current fiscal year on March 31. Based on the 51% tax rate, he got $24.6 million in rolling tax revenue from Jan. 8-16.
A fifth operator, BetMGM, began operations on January 17, and four more are awaiting approval.
Mazzeo, who reports on all types of betting and gaming for PlayNY, part of a network of news sites that covers the legal gambling industry in every state, said time will tell if Caesars can maintain its lead in such a crowded market, or if the market can sustain the blistering pace of its early days, which came midway through the NFL playoffs.
Bettors will migrate to platforms with the best lines and promotions, he predicted.
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