- New York State Revenue
- New York State Gross Gaming Revenue
- Gambling New York City
- New York State Revenue Department
The federal government taxes gambling winnings at the highest rates allowed. So do the many states and even cities that impose income taxes on their residents. If you make enough money, in a high-tax state like California or New York, the top tax bracket is about 50 percent. New York’s sports betting market is off to a promising start with the state’s first betting locations generating almost $350,000 in revenue during the first weeks since opening their doors. The figures, which were published by the New York State Gaming Commission (NYSGC), may not be eye-watering. FAQs: New York State Lottery Winners. Video-gaming facility that has been licensed by the New York State Lottery. (See the New York State Lottery. New York State income tax in the year the payment is received. As a result, you must file a New York State nonresident return (Form IT-203), and include in New York source income.
The New York State Gaming Commission released a report indicating that the daily fantasy sports industry experienced dismal growth, $335 million in revenue and $3.2 billion in entry fees.
New York State Revenue
In 2016-17, the industry brought in the same amount in handle; revenue was just below where it sits now, at $327.3 million. This almost $8 million increase represents 2.4 percent growth, according to Legal Sports Report.
This report expands beyond New York to document the DFS industry. In general, DFS sites must report their total handle and revenue monthly. Because most of the sites are registered in New York, most of these reports, generated by DraftKings and FanDuel, go back to the state of New York.
Here’s a summary:
Resident percentage
- Total entry fees from NYS locations: ~$297.2 million
- Total entry fees from all players: ~$3.2 billion
- Resident percentage: 9.3%
Gross revenue/tax
- Total entry fees from all players: ~$3.2 billion
- Less: Total winnings paid out to all players: ~$2.9 billion
- Gross revenue before resident percentage: ~$335.1 million
- Gross revenue after resident percentage: ~$31.2 million
- Monthly tax: ~$4.04 million
Remittance payable to NYS Gaming Commission: ~$4.8 million
New York State Gross Gaming Revenue
How it’s calculated
Even though New York gained about $4.8 million in tax revenue from DFS, New York is only about 10percent of all DFS entry fees, according to the commission’s data.
The commission gathered this data from the 2017-2018 fiscal year reporting, which ended in March. Back in September 2016, the first month of DFS in New York, the commission calculated handle and revenue data. The year ended in August 2017, leaving five months for overlap and seven months’ worth of new data from September 2017 through March 2018.
What’s happening instead
Instead of performing as expected, the DFS industry is outside of projections forecast in 2015 when DraftKings and FanDuel were picking up pace.
Because of this adjustment, the industry has possibly changed directions, instead looking into sports betting.
New Yorkjust missed its chance for the year, but others are realizing the window is quickly closing for opportunities.
The NFL decided to maintain consistency in its request for involvement, remain positive, and avoid integrity fees. MLB, on the other hand, decided to keep with its more negative position by not taking ads from future sports betting advertisers.
Gambling New York City
Some casinos, like Caesars and MGM, already geared up for the action, with Scott Buterataking a position to expand interactive gaming into new markets, like Mississippi.
New York State Revenue Department
New Jerseygot its sports betting and its first bets placed about mid-way through June. Pennsylvania, Mississippi, and West Virginia followed suit to offer legal sports betting, once regulations are in place.