New York’s online sports betting reached an impressive $26.3 billion in 2025, marking a 15.8% increase from 2024 — the most significant single-year growth in the state’s history.

The annual gross revenue soared to $2.55 billion, representing a 25% rise compared to 2024, with the overall hold rate climbing to 9.7%, up from 9% the previous year.

Market giants FanDuel and DraftKings maintained a strong foothold, collectively contributing 76% of total operator revenue. This thriving market resulted in $1.32 billion in tax income for New York.

The year concluded on a positive note, as December recorded the second-highest revenue month in the history of New York online sports betting, second only to November 2025. According to the New York State Gaming Commission, the eight mobile sportsbooks in the state generated $259.7 million in revenue, reflecting a 72.7% increase from December 2024. December also marked the third consecutive month where gross revenue exceeded $200 million — the longest such streak thus far.

In December, total wagers reached $2.38 billion, showing a 4.3% increase from the previous year, while it marked the fifth consecutive month exceeding the $2 billion threshold. Mobile sportsbooks achieved a remarkable 10.9% hold rate, significantly higher than the 6.6% recorded in December of the prior year, yielding $132.4 million in tax revenue. Over the last three months, the state collected more than $397 million in taxes.

FanDuel retained its market leadership with $120.1 million in revenue for December, closing 2025 with more than $1.1 billion in total revenue. DraftKings processed over $800 million in wagers for the month, generating $84 million in revenue, marking its third-highest monthly total of the year.

BetMGM experienced a 50% rise in monthly wagers, totaling $259.1 million, though it only achieved a 5% hold rate. Fanatics, Caesars, BetRivers, and Bally Bet also reported increases from November, with only Fanatics surpassing the 9% hold threshold.

In other news, TheScore Bet launched its services in New York following PENN Entertainment’s shift from the ESPN BET platform, generating $3.6 million on $42.5 million in wagers, which is less compared to the figures from November and December 2024.

As 2026 commenced, New York saw another robust revenue spike, with sportsbooks earning over $70 million during the first week of January. The closing of the NFL regular season and the college football bowl games contributed significantly to this growth, signaling the fifth consecutive week of heightened profits.

Potential regulatory shifts might impact the market in 2026. Lawmakers have reintroduced a proposal to prohibit live wagering and are examining prediction market platforms like Kalshi and Polymarket that facilitate sports-related event contracts.