Overview

Betting on sporting events is a fast growing part of the underground economy in the United States. Legalizing and regulating sports betting could draw some of this money away from organized crime and into a legitimate market where the state would be in the position to generate significant revenues.

This Partnership Issue Brief chronicles the recent debate over American sports betting and estimates the potential tax revenue New York State might collect should betting on sports be legalized in the state.

$380B

$380 billion is illegally gambled on sporting events every year in the United States.

$30B

$30 billion gambled illegally in New York State annually.

Report Highlights

New York’s Legalization Effort
Largely due to New Jersey’s efforts to legalize sports betting and significant budget gaps in New York City and New York State, there is increased interest in legalizing sports betting. However, legalization efforts in New York have historically faced opposition from professional sports organizations.

New York Revenue Opportunity
The economic findings of this report demonstrate that New York State could raise between $300 million and $2 billion directly from sports betting were it legalized.

Key Takeaways

Legalizing and regulating sports betting could draw money away from organized crime and into a legitimate market where the state would be in the position to generate significant revenues.

The political fight to legalize sports betting has proven difficult in the past. There are numerous requirements and a united front in New York is necessary for any effort to overturn federal law and expand gaming at the state level.