New York reaps $3M in daily fantasy sports’ first five months



The state took in more than $2.8 million in tax revenues from daily fantasy sports operators between late August and January.

New York hit a daily fantasy sports jackpot during football season last year.

The state took in more than $2.8 million in tax revenues from daily fantasy sports operators between late August and January, state Gaming Commission data show.

Taxes were collected on more than $18.6 million in gross revenue that companies reaped in New York during that period. A small amount ($67,412) was collected in additional taxes.

All tax funds are deposited into the New York Lottery fund for use as education aid.

In total, the data show New York operators — including industry titans DraftKings and FanDuel — took in nearly $180.4 million in entry fees from New York players, a nearly 10 percent chunk of more than $1.8 billion from all players.

November was the most lucrative month in New York for companies, making it the most lucrative for the state, which collects a 15 percent tax on in-state gross revenues and an additional smaller tax that does not exceed $50,000 annually per operator.

Companies saw roughly $4.4 million in combined gross revenues in New York in November. The state collected $667,129 in taxes.

Companies were not authorized to operate in New York until Aug. 22, after state lawmakers OKed daily fantasy sports contests legislatively last year. Contests, which players pay to enter and can win cash prizes from, are statutorily considered games of skill, rather than games of chance.

This article is a reprint from the Albany Times Union. To view the original story and comment, click here


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