(The Center Square) — New York’s mobile betting sports books continue to rake in money from the multi-billion dollar industry five years after its launch, which bodes well for the state's tax coffers.
The report by New York Comptroller Tom DiNapoli, released Tuesday, said sports books brought in nearly $1.3 billion from online wagering in the fiscal year that ended on June 31, bringing to the state's total revenue from mobile betting to $8.3 billion since it was launched.
But DiNapoli's report also flagged a corresponding rise in the number of people seeking help for problem gambling, which is being driven in part by access to the largely unregulated prediction markets.
In the previous fiscal year, there were 2,545 calls to the state’s HOPEline, up 8.5% from 2020, according to the report.
"While the legalization of mobile sports betting in New York has boosted state revenues, the rise in problem gambling, particularly among young people, is a major concern," DiNapoli said. "The rapid proliferation of the prediction markets, which generate significant revenue based on sports activities, only makes it easier to get hooked on these online platforms."
The report also flagged a "significant" increase in the number of alleged incidents of "underaged participation" in mobile sports wagering accounts, from 54 in 2023 to 1,972 in 2025.
DiNapoli said he was "encouraged" by the state’s decision to double funding for problem gambling services from $6 million to $12 million, but said that's "a drop in the bucket compared to the billions being wagered."
"We need to do much more to identify how mobile sports betting is impacting New Yorkers and ensure consumers are protected," he said.
New York has had in-person sports betting at casinos since 2019 and authorized mobile betting a few years later, which began in January 2022.
Currently, there are nine mobile sportsbooks licensed by the state to take wagers on professional games through websites and apps on users’ smartphones, tablets and other electronic gadgets.
The state's sports betting tax rate is currently set at 51%, which has generated nearly $825 million in taxes over the past two years, according to the commission's data.
Gov. Kathy Hochul is projecting the Empire State will bring in more than $1.1 million in tax revenue from mobile sports betting in the current fiscal year, which began April 1.
At least 39 states and the District of Columbia have authorized betting on sports in response to a 2018 U.S. Supreme Court ruling that struck down a federal law prohibiting sports gambling in nearly all states.
Nationwide, wagers collectively hit a record in 2025 of more than $167 billion — an 11% increase from the previous year, according to the American Gaming Association
Backers of the wagering say it is raising much-needed tax revenue for the states and local governments and helping eliminate illegal bookmaking operations. Critics say the burgeoning gambling industry fleeces the pockets of working-class Americans and contributes to irresponsible behavior.