Sports betting became legal in New York in 2019. Between July 2019, when the first bet was placed, and January 2023, the total handle was over $18.4 billion, with more than $771.7 billion paid as taxes. In January alone, the state’s total sports betting handle was nearly $1.8 billion.
Sports betting is big business in New York and is set to continue rising as the sector records growing interest. While several factors can influence the industry, the introduction of cryptocurrency is a particularly interesting catalyst for the sector.
At the moment, it is difficult to precisely tell whether or not crypto gambling tendencies this year will shape the industry in 2024 and beyond. In addition, the effect of crypto payments may not directly extend to the main sporting events and may not impact their acceptance or popularity. However, cryptocurrency will likely expand the sports betting landscape as general crypto adoption increases.
Digital currency laws in New York allow service providers to handle fiat and crypto after obtaining the BitLicense, Limited Purpose Trust Charter, or money transmitter license from the New York Department of Financial Services (NYDFS). While companies have described the process as expensive and arduous, the NYDFS has issued licenses to multiple companies for years. This has encouraged crypto adoption among state residents, expanding the potential customer base of online casinos accepting cryptocurrency deposits.
The argument for crypto as the future of sports betting in New York is easy to make when the many benefits crypto bettors stand to gain are considered. Firstly, there is anonymity and security, which means central authorities can not easily monitor transactions and wagers. Payments are also secure and easily verifiable on the blockchain, which reduces the risk of fraud and easily settles payment disputes when they happen. In addition, deposits and withdrawals are quickly processed because crypto transactions are fast. Players can access their winnings immediately instead of waiting through delay periods typical of traditional methods.
Another advantage is reduced fees. Bettors get to enjoy cheap transaction charges, especially compared with traditional options. With cheap fees, these bettors have more money to spend on their favorite teams and may increase their chances of winning. Furthermore, affordable fees come in handy with withdrawals. Through cryptocurrencies, winners no longer have to worry about losing a sizable chunk of their winnings to transaction processing fees.
Digital assets also contribute significantly to the future of sports betting in New York because interested people outside the state can join the action. Anyone with internet access and a crypto wallet with supported assets can place bets without worrying about fiat conversions.
In addition to benefits for users, the state of New York may receive more tax revenue by supporting crypto in sports betting. Between January 2022 and January 2023, the state earned at least $41 million monthly from sports betting, raking in $75.6 million in November 2022 and $76.2 million in January 2023. Easy crypto laws and direct support for crypto betting could easily boost these figures in the state’s favor.
