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New York Lotteries Lead North America in Profitability

New York Lotteries Lead North America in Profitability

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Finance

Nicole Maccarelli

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The New York State Gaming Commission has revealed that three of the state's most popular draw games have contributed over $63.9 million (£50.7 million/€59.1 million) to public schools and small businesses.


New York's Leading Contribution to Education


The New York lottery stands out as North America's most profitable, injecting $3.7 billion into state education during the 2022-23 fiscal year.


Games like Mega Millions, Powerball, and NY Lotto have witnessed a surge in popularity, collectively generating $55 million for public schools. Mega Millions led the pack with $23.8 million, followed by Powerball with $17.8 million, and NY Lotto with $13.4 million.


Moreover, $8.9 million has been channeled into commissions for lottery retailers, many of which are small businesses. Once again, Mega Millions topped the list, contributing $4.1 million, trailed by Powerball with $3 million and NY Lotto with $1.8 million.


Gaming Commission's Perspective


Brian O'Dwyer, Chairman of the Gaming Commission, emphasized the broader benefits of lottery participation, stating, "Every ticket purchase is a win for New York state's taxpayers and businesses."


New York's Dominance in Sports Betting Taxes


New York continues to lead in sports betting profitability in North America, setting consecutive records. In January, the state achieved a remarkable online sports wagering revenue of $211.5 million, up by 12.3% from the previous record set the month before.


This robust performance translates into significant tax revenue for New York, primarily due to its 51% tax on gross gambling revenues, the highest in the nation.


Impact on Tax Revenue


The Quarterly Survey of State and Local Tax Revenue (QTAX) by the United States Census Bureau highlighted New York's tax dominance, with the state generating $188.5 million in Q3 of 2023. This accounted for 37% of the total tax revenue in the US, significantly surpassing other states.


Challenges in iGaming Legalization


Despite its success in sports betting, New York faces challenges in legalizing iGaming. Governor Kathy Hochul's omission of iGaming from the 2025 executive budget dealt a blow to hopes of online gaming legalization in the state. Senate Bill S8185, introduced by State Senator Joseph Addabbo, aimed to address this gap, building on previous efforts to legalize online gaming in New York. However, the path to legalization remains uncertain.



Image License: Unsplash.com, Free to use, Author: Michael Discenza

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