Key Moments:
- New York sports betting handle in September exceeded $2.4 billion, up 5% from September 2025
- First six months of the 2026/2027 fiscal year saw nearly $12.6 billion bet, a 6.9% increase over the prior year
- Sportsbook revenue in New York declined 5.8% to $1.1 billion over the past six months despite higher betting volume
New York Betting Handle Maintains Momentum
Despite ongoing debates within the regulated gambling industry about the competitive impact of prediction markets, sports betting activity in New York has continued to increase. According to the New York State Gaming Commission, bettors placed more than $2.4 billion in wagers during September, representing a rise of 5% over September 2025. This equates to about $114 million more in wagers year-over-year.
From January through September, total sports betting volume for 2026 is 3.7% higher than the previous year, with bettors wagering approximately $697 million more compared to the same period in 2025.
The trend has been even stronger during the first half of New York’s 2026/2027 fiscal year, starting in April. Over six months, the state’s betting handle approached $12.6 billion, marking a 6.9% increase over the comparative timeframe in 2025.
Revenue Pressure on Sportsbooks
While total wagers are rising, sports betting operators in New York have experienced declining revenues. Over the most recent six-month period, sportsbook revenue dropped 5.8% to $1.1 billion. This decline is attributed to a reduced sportsbook hold, which fell from 10% to 8.8%, indicating that bettors have been more successful in their wagers.
| Period | Betting Handle | Handle Growth | Revenue | Revenue Change |
|---|---|---|---|---|
| September | $2.4 billion | +5% (vs. Sep 2025) | – | – |
| Jan – Sep 2026 | – | +3.7% (vs. 2025) | – | – |
| Apr – Sep 2026/2027 FY | $12.6 billion | +6.9% (vs. 2025) | $1.1 billion | -5.8% |
Debate over Prediction Markets’ Impact
Representatives from the state’s legal gambling sector have continued to express concern that trading on federally regulated prediction markets is drawing business away from New York’s nine regulated sportsbook operators. Industry figures maintain that prediction markets divert betting volume, while prediction market operators argue they do not provide traditional gambling, since participants wager against each other rather than a house.
The American Gaming Association (AGA) states, “Prediction market platforms are offering illegal sports betting nationwide outside the state and tribal regulatory frameworks that protect consumers. They override voter decisions, bypass key consumer protections, ignore state and tribal laws, and avoid licensing and taxes.” The association highlights that running estimates of lost state gaming tax revenue are nearing $1.6 billion since prediction markets started facilitating sports betting in late 2025. According to the AGA, this shortfall reduces funding available for educational, healthcare, infrastructure, and other local government needs.
“Prediction markets contribute nothing,” the AGA said.
Comparisons Across Key Markets
New York stands as the largest sports betting market among the 39 states permitting legal sports wagering. The state features platforms such as Bally Bet, BetMGM, BetRivers, Caesars Sportsbook, DraftKings, theScore, Fanatics, FanDuel, and Resorts World Bet.
Despite concerns about prediction markets, the persistent growth in New York’s betting handle is noteworthy. In contrast, Illinois – the second-largest market – reported $9.3 billion in online wagers on professional and college sports through August 2026, up 5.7% from $8.8 billion over the same period in 2025.
Not all states are experiencing gains. In New Jersey, betting handle has dropped 4.1% through September, with total wagers falling from $8.6 billion to $8.3 billion.
- Author
Daniel Williams
