According to a new section added to the U.S. Census’ Quarterly Survey of State and Local Tax Revenue (QTAX), New York sports betting'operators accounted for 37% of total tax revenue in the U.S. for the Q3 2023. Total sports betting taxes — which include taxes on parimutuel wagering — nationwide for the third quarter were $505.96 million, a 20.5% increase against the same quarter in 2022, but about $65 million decrease against the the second quarter of 2023.
New York’s nine operators paid the state $188.53 million in taxes. The state in which operators contributed the next most amount of taxes was Indiana, which took in $38.62 million. Also among the top five were Ohio, Illinois, and Pennsylvania. Interestingly, Montana, which only offers in-person wagering at kiosks, ranked No. 10 in tax revenue at $10.61 million.
New York has one of the highest tax rates in the nation at 51% of adjusted gross sports betting revenue while Indiana’s tax rate is 9.5% and its population is smaller than that of Ohio, Illinois, and Pennsylvania.
Nevada, that state that has the longest history of sports betting, but also one of the lowest tax rates at 6.75% did not crack the top 10. The state brought in the least amount of tax revenue is Nebraska ($22 million), which offers only in-person wagering and does not allow betting on local college teams playing at home.