New York degenerates, you beautiful bastards. You just collectively wagered $26.3 billion on sports in 2025. That's a record. That's also 17.5% of all the legal sports betting in the entire United States. New York isn't just the biggest market anymore—it's running away from everyone else.

The Quick Hit

• What happened: NY mobile sports betting hit $26.3B handle in 2025
• The damage: Up 15.8% from 2024, the biggest annual jump since launch
• Why you should care: NY generated $1.32B in tax revenue from gambling
• The move: If you live in NY and bet sports, you're part of this

The Numbers Are Absurd

The State Gaming Commission confirmed that New York's online sports betting market produced $26.3 billion in total wagers during 2025. That's:

• 15.8% higher than 2024's handle
• The largest single-year increase since mobile betting launched in 2022
• $2.55 billion in gross revenue for operators (up 25% YoY)
• $1.32 billion in tax revenue for the state

The statewide hold rate also climbed to 9.7%, up from 9% the previous year. So the books are keeping more of each dollar wagered, which tracks with industry-wide trends we've been covering.

FanDuel and DraftKings Run the Show

No surprise here: the big two dominate New York like they dominate everywhere else.

FanDuel:

• $120.1 million in December revenue alone
• Over $1.1 billion in total 2025 revenue
• Market leader by a significant margin

DraftKings:

• $84 million in December gross revenue
• Over $854 million in 2025 revenue
• 10.5% hold rate in December (higher than average)

Together, FanDuel and DraftKings accounted for 76% of all operator revenue in New York. The other books—BetMGM, Caesars, PointsBet, and the rest—are fighting for scraps.

What This Means for US Sports Betting

New York hitting $26.3 billion pushed the total US commercial sports betting handle over $150 billion for 2025. That's a milestone that seemed impossible just a few years ago.

The Empire State alone represents 17.5% of all wagering in commercially regulated states. For context:

• New Jersey, the second-largest market, does about $12B annually
• Pennsylvania comes in around $8B
• Illinois does roughly $7B

New York is more than double the size of any other state. The combination of population (19+ million), legal mobile betting, and a sports-crazed culture creates perfect conditions for degeneracy at scale.

The Tax Situation

Here's where it gets spicy. New York operators pay a 51% tax on gross gaming revenue—the highest rate in the country by far. Most states charge somewhere between 10-20%.

That 51% rate is why New York generated $1.32 billion in tax revenue despite having roughly similar gross revenue to states with much lower tax burdens. It's also why operators constantly complain about the New York market's profitability.

But clearly they're still making money. FanDuel's $1.1 billion in New York revenue means they kept roughly $539 million after taxes. That's still a massive business.

December Was Huge

The final month of 2025 saw $2.39 billion in handle—one of the biggest months in New York history. NFL playoff positioning, bowl season, and holiday sports all contributed.

December's hold rate was particularly brutal for bettors. The books kept nearly 10 cents of every dollar wagered, which is above the historical average.

The Bottom Line

New York has proven that high taxes don't kill sports betting demand. When you have a population that wants to bet and you make it legal and convenient, the handle follows.

For bettors, the message is clear: you're part of a $26 billion industry just in one state. The 90% gambling loss deduction cap that took effect this year makes the tax implications even more important for high-volume bettors.

For the industry, New York remains the prize market that everyone wants—even with that 51% tax rate. When you're moving $26 billion through your platform, there's plenty of profit to go around.

And for the state of New York? Thanks for the $1.32 billion, degenerates. They'll put it to good use. Probably.