The revenue is coming in, but the operating and advertising costs are making it hard for mobile sports book operators in New York State to profit. An analyst for The New York Post crunched the numbers and determined that the operators have lost a combined $200 million.
A number of factors have lead to the disappointing results. New York’s 51% tax on all mobile gaming revenue certainly is part of it. The other part is that right now, books are spending more to attract players. While more players have signed up than expected, that does mean more is being spent in bonuses by the operators.
Something else to remember is that we are still VERY early in mobile betting’s New York lifespan. That means we are seeing more promotions and cost than we may ever see again in the state.
“The initial marketing blitz should tail off given that awareness has been set,” The New York’s analyst said. “There is a realization the entire market needs to shift to a profit focus.”
