The Tax on New York Sports Betting is Insane

Submitted by Gilbert Horowitz on

Written by :

Gilbert Horowitz

Published on :

The Tax on New York Sports Betting is Insane

If you thought the 36% tax on sports betting in Pennsylvania was high, move over and make way for New York with its sick 51% tax.

BetUS-Square-Banner-NFL.gif

New York in January became the largest US state to embrace online sports betting but the high tax rate makes it close to impossible to compete.

The betting companies operating in the Empire State include DraftKings, FanDuel, Caesars Sportsbook, and Rush Street Interactive.

That'll make it harder for operators to profit off their customer bases in the state, Jason Ader, CEO of SpringOwl Asset Management and 26 Capital Acquisition Corp, tells MSN News.

"Everybody wants to be in New York because it's a trophy market in terms of the size of the state and its importance, but the tax rate is really prohibitive," Ader said. "It's very hard to make money in sports betting. Put 51% tax rate on it and it's maybe a bit more like a fool's gold rush than a gold rush."

As far as players go, these taxes will likely be passed down in the form of less attractive lines, bonuses and cashout fees.  In the early months, companies may seek to reduce the affect on customers.  These companies will also report all winnings to the IRS, something offshore sportsbooks and local bookies do not do.

Some websites licensed outside the state in offshore jurisdictions continue to do business in New York.  Many, like Bovada, BetOnline and BetAdrian, have pulled out of that market.

- Gilbert Horowitz, Gambling911.com

Related Content

Delbet Launches Expanded Crypto Gaming Platform with New Blockchain Features

Delbet Launches Expanded Crypto Gaming Platform with New Blockchain Features

Delbet Launches Expanded Crypto Gaming Platform with Faster Transactions, Enhanced Security, and New Blockchain Features
Sweepstakes Casino Reviews - August 2026

Sweepstakes Casino Reviews - August 2026

This page features reviews of some of the industry's leading sweepstakes casino sites. These are real customer reviews as well as important news pertaining to a specific brand where applicable for August 2026.
Illicit Iranian Gambling Network Helped Pull Off a $4 Billion Sanctions Dodge

Illicit Iranian Gambling Network Helped Pull Off a $4 Billion Sanctions Dodge

An illicit Iranian gambling network helped move at least $4 billion through an unlicensed Dubai-based cryptocurrency exchange that also handled funds for sanctioned Iranian institutions, a Reuters investigation found.
The Mob Museum in Las Vegas Teams Up With Golden Gate Hotel & Casino to Showcase Limited-Time Only Artifacts

The Mob Museum in Las Vegas Teams Up With Golden Gate Hotel & Casino to Showcase Limited-Time Only Artifacts

The artifact exhibition coincides with a new offer as part of the Golden Gate’s “The Night Starts Here” promotion, giving attendees 25% off Museum admission and players the chance to win free admission to The Mob Museum from Monday, Aug. 3 to Thursday, Sept. 3.