New York’s sports betting market just posted a record $26.27 billion handle in 2025—a 14.8% jump from the previous year. But behind the headline numbers lies a harder truth for bettors: the nation’s highest tax rate and a two-operator stranglehold on the market are compressing the value you actually get back.
KEY FACTS AT A GLANCE
- 2025 Handle: $26.27 billion (+14.8% YoY)
- Gross Gaming Revenue: $2.55 billion (+25% YoY)
- Tax Revenue: $1.32 billion to state (+27% YoY)
- Tax Rate: 51% — highest in the nation
- Market Dominance: FanDuel + DraftKings = 76.6% market share
- US Context: NY = 17.5% of all legal US sports betting ($150B+ total)
Year-Over-Year Growth
The 2025 numbers represent significant growth across every metric. Here’s how New York’s sports betting market evolved compared to 2024:
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Total Handle | $22.87B | $26.27B | +14.8% |
| Gross Gaming Revenue | $2.04B | $2.55B | +25% |
| Tax Revenue | $1.04B | $1.32B | +27% |
| Average Hold Rate | 9.0% | 9.7% | +0.7 pts |
The GGR growth (+25%) outpacing handle growth (+14.8%) indicates operators are keeping more per dollar wagered—driven by the increasing hold rate and the market’s recreational bettor composition.
Latest Weekly Data: Week Ending January 4, 2026
The most recent reporting week shows the market’s continued momentum heading into 2026:
WEEK ENDING JANUARY 4, 2026
- Weekly Handle: $575.86 million
- FanDuel Weekly: ~$200 million (34.7%)
- DraftKings Weekly: ~$200 million (34.7%)
- Combined Duopoly: ~$400 million (69.5% of weekly handle)
At this pace, New York is processing over $2.3 billion monthly through legal sportsbooks. For context on calculating your own betting metrics, see our expected value calculator and bankroll management tool.
US Market Context: The $150 Billion Milestone
New York’s record sits within a broader milestone: US legal sports betting crossed $150 billion in total handle for the first time in 2025. New York alone accounts for 17.5% of that national total—nearly one in every five dollars wagered legally in America flows through New York sportsbooks.
This dominance explains why operators compete so aggressively for New York licenses despite the punishing 51% tax rate—the sheer volume makes it worthwhile, even with compressed margins.
The 51% Tax Problem
New York’s 51% operator tax rate is the highest in the country—and it directly affects your betting experience. Operators keep just 49 cents of every dollar they earn in gross gaming revenue (GGR). Compare that to Nevada’s 6.75% or New Jersey’s 13%, and you start to understand why promos are thinner and odds tighter in New York.
Related tools: Odds Converter · Vig Calculator · No-Vig Fair Odds
| State | Tax Rate | What Operators Keep |
|---|---|---|
| Nevada | 6.75% | 93.25% |
| New Jersey | 13% | 87% |
| Pennsylvania | 36% | 64% |
| New York | 51% | 49% |
This tax overhead compresses margins across the board. Operators recoup costs through tighter lines, smaller welcome bonuses, and higher wagering requirements on promotions. If you’re betting the same $100 in New York versus New Jersey, you’re mathematically getting less value back—not because of your skill, but because of the regulatory environment.
For bettors looking to maximize value despite these constraints, understanding spread betting fundamentals and moneyline mechanics becomes essential—every fraction of a point matters when margins are this thin.
The Duopoly Reality
FanDuel and DraftKings combined for 76.6% of New York’s sports betting revenue in 2025. That kind of market concentration means less competitive pressure to win your business.
| Operator | 2025 Revenue | Market Share |
|---|---|---|
| FanDuel | $1.1B | 43.1% |
| DraftKings | $854M | 33.5% |
| BetMGM | ~$200M | ~8% |
| Fanatics | ~$180M | ~7% |
| Others | ~$200M | ~8% |
When two operators control over three-quarters of the market, the promo wars that defined early market launches cool down significantly. BetMGM, Fanatics, Caesars, and others are fighting for scraps—around 8% each—with limited ability to outspend the leaders.
For bettors, this means the aggressive sign-up bonuses and ongoing promotions that characterized 2022-2023 are becoming rarer. The market has matured, and with it, the incentive to compete aggressively on price. Understanding how to extract value from parlay bets and using a parlay calculator can help maximize returns in this environment.
Reading the 9.7% Hold Rate
Here’s a number that tells a story: New York’s sportsbooks kept 9.7% of all money wagered in 2025 ($2.55B GGR on $26.27B handle). That’s notably higher than the industry average of 7-8%.
What does this mean? Hold rate is essentially a measure of how much the house wins. Higher hold rates typically indicate a recreational-heavy market—casual bettors making parlays and props rather than sharp money hitting efficient closing lines.
HOLD RATE EXPLAINED
- Lower hold (5-7%): Sharp-heavy market, efficient odds
- Average hold (7-8%): Balanced market composition
- Higher hold (9%+): Recreational-heavy, parlay-driven volume
For sharp bettors, this actually presents opportunity. A recreational-dominated market means lines can be slower to move, and closing line value may be more accessible—if you know where to look. Our Kelly Criterion calculator can help optimize bet sizing when you identify value.
The Offshore Alternative
Despite $26.27 billion flowing through legal channels, a significant portion of New York betting volume still moves offshore. The reasons are structural:
WHY BETTORS GO OFFSHORE
Better Odds
No 51% tax overhead means offshore books can offer tighter juice and better lines
More Prop Variety
Regulated markets restrict certain prop types; offshore books offer wider selections
Crypto Payment Rails
Faster deposits and withdrawals via Bitcoin and other cryptocurrencies
That said, legal sportsbooks offer real advantages: consumer protections, dispute resolution, and no risk of funds being seized. The choice isn’t black and white—it’s about understanding the tradeoffs and making informed decisions based on your priorities. If you’re considering crypto betting, understanding how Bitcoin volatility affects your bankroll is essential.
2026 Legislative Watch
New York’s record-breaking 2025 may face significant changes in 2026. Several legislative proposals could reshape the market:
LIVE BETTING BAN (A09343)
Would eliminate in-play wagering entirely. Live betting accounts for ~50% of US handle nationally, 60%+ in mature markets—devastating if passed.
PREDICTION MARKET REGULATION
NY Gaming Commission scrutinizing Kalshi and Polymarket after election controversy. New restrictions possible.
iGAMING EXPANSION
Sen. Addabbo pushing online casino legalization again. Would significantly expand the regulated market.
Governor Hochul also signed a sweepstakes casino ban in December 2025, following similar enforcement actions in Tennessee and other states. This signals increased regulatory scrutiny of gaming alternatives.
The prediction market angle is particularly interesting given recent controversies around political betting and the broader prediction market wars playing out nationally. New York’s regulatory stance here could set precedent for other states.
The combination of potential live betting restrictions and prediction market crackdowns could push more volume offshore—the opposite of what regulators presumably want.
KEY TAKEAWAYS
- Record numbers, compressed value — $26.27B handle (+14.8% YoY), but 51% tax means NY bettors get worse odds and promos than lower-tax states
- Duopoly dominance — FanDuel and DraftKings control 76.6% of the market, reducing competitive pressure on pricing
- Recreational market — 9.7% hold rate (up from 9.0%) suggests heavy recreational bettor composition, with potential opportunities for sharps
- National significance — NY represents 17.5% of the $150B+ US legal sports betting market
- 2026 threats — Live betting ban and prediction market regulation could fundamentally reshape the landscape
Sources
- New York State Gaming Commission — Official sports wagering data
- A09343 Bill Text — Live betting prohibition proposal
