New York Breaks Records On Opening Weekend
Newly licenced sports betting in New York got off to a record-breaking start, with 5.8 million transactions taking place in just 12 hours between 9 am and 9 pm. The four licenced operators enjoyed a bumper weekend despite the 51% tax imposed by the state on them.
NY Breaks Sports Betting Records © Pixabay.
Caesars, FanDuel, DraftKings and Rush Street Interactive enjoyed a bumper first weekend of sports betting activity as operations began in New York.
Data from Geocomply, a location and fraud detection specialist, showed 5.8 million sports bets were placed in the first 12 hours of operation.
Sportsbook operations started at 9 am on Saturday, and by 9 pm the same day, 5.8 million bets were placed, equivalent to 8,055 sports bets per minute. The figure of 5.8 million was almost 250% higher than neighbouring Pennsylvania who recorded 2.3 million sports bets in the same timeframe.
The figure ensured that the Empire State comfortably claimed the title of best sports betting opening day. The previous record was set by New Jersey, which took 2.1 million bets. Other opening day numbers include Michigan and Illinois who recorded 1.6 million and 1.1 million, respectively.
The number of sports bets placed in the first twelve hours was also over 800% of that number recorded in Arizona, which was the latest to legalise sports before New York. Arizona accepted sports betting in April last year, attracting 1 million bets between 9 am and 9 pm.
Geocomply also revealed that interest in sports betting was maintained throughout the weekend, with 17m bets placed in the first 36 hours. Statistics which the company called “legendary”.
Industry analysts will take note of the figures as the high volume would have taken many of them by surprise. New York has introduced a 51% tax rate on sports betting transactions, and some experts felt that punters could travel to nearby states to place their bets. Connecticut and New Jersey are neighbours, and their tax rates are much lower. Connecticut has a 13.5% rate, and in New Jersey, online sports bets are taxed at 13%, and retail sports betting is 8.5%.
Also interested in the opening day figures will have been the operators who missed out on the first tranche of licences. This is because the New York Gaming Commission assessed licence applications, and operators were assessed on technical and pricing criteria.
Each applicant was given a score based on the Commission’s proposed measures, and applicants needed to score at least 60 from a possible 75 to qualify.
Several high-profile names failed to secure enough points to qualify.
Fanatics, a global sports merchandiser, who had international rap star Jay-Z as a bid ambassador failed to score enough points.
UK giant bet365 did score enough points, the only rejected applicant to do so. However, its proposal would have seen the state receive 50% rather than the mandatory 51%, so its bid was ultimately rejected.
Although some operators were critical of the high costs or requirements, some were complimentary of the process.
BetMGM CEO Adam Greenblatt applauded the ““transparent and timely” sports betting licensing process. Saying: “New York has the potential to be one of the largest sports betting markets in the US,” said Greenblatt.
“BetMGM is particularly well-positioned to become a leader in the state given the strength of the M life customer database, close proximity of Empire City Casino to support our omni-channel strategy, and parlaying our already leading positions in nearby states,” he added.
Operators have been offering generous welcome deals to try and get a headstart in what is likely to be one of the most competitive states for sports betting. For example, Caesars offered New York bettors a $300 sign-up bonus and a deposit match of up to $3,000.
