Mobile sports betting generated $1.3 billion in New York tax revenue during the 2026 state fiscal year, even as calls to the state's problem gambling hotline increased, according to a new comptroller's report.
The report says mobile wagering is now the state's second-largest source of gaming revenue behind the lottery and has reshaped a sector that otherwise produced slightly less revenue than it did a decade earlier.
Betting drives statewide gaming growth
New York collected more than $5.1 billion in gaming revenue in fiscal 2026, up $1.3 billion, or 33%, from fiscal 2016. Excluding mobile sports wagering, combined revenue from the lottery, casinos, horse racing, video lottery terminals and fantasy sports declined 0.8% over that period.
Tax collections from mobile sportsbooks rose from $727.4 million in fiscal 2023 to $1.3 billion in fiscal 2026, an increase of 78.4%. Since mobile wagering began in January 2022, bettors placed more than $91.2 billion in wagers, producing $8.3 billion in gross gaming revenue.
The lottery remains the largest gaming-revenue source, but its fiscal 2026 collections were nearly 10% below their fiscal 2023 peak. Lottery revenue through July of fiscal 2027 was up only $4.4 million, or 0.6%, from the same period a year earlier.
A joint Gaming Commission and Office of Addiction Services and Supports report counted 7.2 million unique mobile wagering accounts in 2025. The average account wagered $3,500 during the year, and the average bet was $42.
Five sports drew more than 90% of mobile wagers, with basketball leading at more than $9 billion. Betting tends to increase from October through March around the World Series, Super Bowl and NCAA basketball tournament.
Knicks championship changed June results
The amount wagered across authorized platforms rose by more than $604 million, or 36.6%, in June 2026 compared with a year earlier. Gross gaming revenue nevertheless fell nearly $90 million, or 43.5%, after the underdog New York Knicks won the NBA championship and sportsbooks paid out winning bets.
More than $1 billion was wagered during the first two weeks of June, but operators recorded a net loss of $14.4 million because payouts exceeded wagers received.
During the World Cup from June 11 through July 19, excluding NBA Finals week, bettors placed $2.5 billion in wagers. That was $775.5 million, or 45.7%, above the comparable 2025 period.
Hotline calls and prediction markets raise concerns
The state's HOPEline received 2,545 problem-gambling calls in 2025, an 8.5% increase from 2020. Comptroller Thomas DiNapoli said rising participation, particularly among younger people, warrants more study and consumer protection.
New York doubled funding for problem-gambling services from $6 million to $12 million, but DiNapoli said the amount remains small compared with the billions wagered.
The report also highlighted prediction markets such as Kalshi and Polymarket, where users trade contracts tied to real-world events. Sports accounted for 79.8% of Kalshi's global trading volume and 51.2% of Polymarket's, according to the report.
New York regulators ordered Kalshi to stop offering what they described as unlicensed sports wagering in October 2025. The governor and attorney general sued the company on July 31, while a coalition of 44 state attorneys general argued that the Commodity Futures Trading Commission lacks authority over sports-related event contracts.
Prediction markets generally allow participation at age 18, compared with 21 for New York mobile sports betting, and face fewer advertising restrictions. New data-collection rules took effect Feb. 28, 2026, and DiNapoli said timely demographic information will be important as policymakers assess the effects.
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