ECONOMY

New Yorkers Wagered $472 Million Online Over Super Bowl Week

New York sports bettors wagered $472.1 million the week of the Super Bowl, making it one of the most lucrative periods since the state legalized mobile betting on Jan. 8, according to the New York State Gaming Commission.

Bets surrounding the Super Bowl enticed users to flock to their sportsbook apps. Some 1.7 million people used DraftKings Inc., one of the largest betting operators by market share, for the big game. 

“That was by far the most we’ve ever had in one day and it’s not even close,” DraftKings Chief Executive Officer Jason Robins said during a conference call with investors Friday. “I can tell you it was up, extraordinarily higher year-over-year versus last Super Bowl.”

The U.S. Supreme Court lifted a widespread ban on sports betting in 2018, opening up the floodgates for sports betting operators to rapidly expand. New York offers one of the world’s richest markets, thanks to the metro area’s two professional football teams, two baseball teams, hockey squads and soccer clubs.

Sportsbooks doubled-down on ad spending last year, according to ad tracking company Kantar, and have pushed promotional credits as large as $1,000, reeling in first-time bettors. More than 1.1 million accounts were created in New York in the first two weeks of legalization, according to GeoComply Solutions Inc., which monitors transactions. Nearly 90% of the players are new to regulated digital sports betting, GeoComply said. Additionally, new types of bets encourage gamblers to put down more money.

The competition is taking its toll on operators. DraftKings shares tumbled Friday after forecasting a big loss for 2022.

New York takes a 51% cut of the companies’ gross revenue. The state reaped in over $70 million during the January, and expects to rake in a total of $249 million in fiscal 2022, according to budget documents, some of which will be spent on youth sports and education — and addressing gambling problems. 

New Yorkers bet a total of $572.5 million in the third week of January, the best period so far.

“Over the past month, we’ve seen how mobile sports wagering can be an economic engine for New York, driving significant funding to our schools, youth sports, and so much more,” Governor Kathy Hochul said in a statement this week.

New York currently permits seven mobile sports betting companies to operate in the state. There are two more pending approval. 

People in New Jersey bet $143.7 million on the Super Bowl. Despite concerns that New York would cannibalize New Jersey’s sports betting market, the state’s gambling market continued to grow. They recently beat their own record for bets placed in a month at $1.3 billion in January. 

Thirty states now offer sports betting. Growth has been widespread, with Super Bowl wagers in gambling hub Nevada rising 32% to a record $179.8 million this year, according to the state’s Gaming Control Board. One exception: Mississippi. Super Bowl wagers fell 21%, with wagers in neighboring Louisiana likely eating into to the state’s betting total.

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