The Quarterly Survey of State and Local Tax Revenue (QTAX) by the US Census Bureau added sports betting to its list of tax sources. In Q3 2023, sports betting generated national tax and gross receipts of nearly $506m. This was a 20.5% increase from Q3 2022 but lower than the $571.5m in Q2 2023. New York led in tax revenue with $188.5m, followed by Indiana with $38.6m. With a 51% tax on gross gambling revenues, New York had the highest tax rate. Ohio, Illinois, and Pennsylvania also saw significant tax revenue from sports betting.
New York continued to set records in sports betting, with January revenue reaching $211.5m, an increase of 12.3% from the previous month. FanDuel dominated the market, posting a record $109.2m in online betting revenue. Penn Entertainment announced the acquisition of Wynn’s New York sports betting licenses, paving the way for the launch of ESPN Bet in 2024. Despite the success of sports betting, online gaming was excluded from New York’s 2025 budget, a setback for those hoping to see it legalized in the state.
