With New York sports betting operators on the verge of launching mobile apps in the state, EmpireStakes.com wanted to gauge the progress of the only other legalized sports betting state to have a 51% tax rate – New Hampshire.
In August 2020, Daniel Maloney became the first director of sports betting for the New Hampshire Lottery. Before his current position, Maloney worked as an attorney and in compliance on primarily finance-related matters. Maloney has an LLM in Gaming Law and Regulation from the William S. Boyd School of Law at the University of Nevada-Las Vegas.
New York currently has four upstate casinos with retail sports wagering but the state hopes to have sportsbook app NY options available by the Super Bowl in February 2022 if not before.
EmpireStakes.com: Since launch, how is sports betting coming along in the Granite State?
Daniel Maloney: Since the DraftKings New York Mobile App first launched in December 2019, sports betting has continued to exceed our expectations. Our last reported results for October 2021 set new highs in mobile handle, retail handle, and state revenue, all generated to our education fund. DraftKings also has greatly expanded the offerings available to wager on, including NFL same-game parlay functionality that has been very popular among New Hampshire players.
Examining the 51% Tax Rate
EmpireStakes.com: New York will have a 51% tax rate when it launches mobile sports betting in the near future. New Hampshire is currently the only state with that same 51% rate. How has the tax rate worked out for New Hampshire?
DM: During the RFP (Request for Proposal) process, we focused on finding partners that would provide a customer-centric experience as well as maximizing net profit, which is earmarked for education here in New Hampshire. We did not have a set tax rate or number of providers set by statute. Rather, as a result of a competitive bid process, DraftKings offered a revenue share of 51% for mobile and 50% for retail if they were chosen as a sole operator.
Further, our contract with DraftKings ensures that our players will benefit from a top provider in terms of user interface, market odds and lines, and diversity of offerings. It has been a fantastic partnership that has benefitted all parties involved.
When we initially launched in December 2019, we anticipated generating state revenue of about $10 million per year. In our first full fiscal year (7/20 to 6/21) we generated just under $18 million to our education fund ... greatly passing our projections. In addition, we’ll surpass $1 billion in wagers in January ... just 25 months since launch.
EmpireStakes.com: What do you think the tax rate could mean for New York?
DM: States have different priorities and policy goals in legalizing sports wagering.
We wish New York State the best of luck with its launch and are excited for its residents, but it isn’t our place to speculate on how other states will perform.
EmpireStakes.com: Has the tax rate hurt your state or have your prospered from it?
DM: As stated above, we believe everyone involved has prospered. Our players get a great product, DraftKings and their retail partners are performing well, and our education fund is receiving a significant contribution.
DraftKings the One and Only
EmpireStakes.com: There are now three DraftKings retail sportsbooks open in New Hampshire. What are the plans for adding more in 2022? What cities would be next?
DM: Nashua recently voted to approve a retail sportsbook and we anticipate opening a location there sometime in 2022.
EmpireStakes.com: Could you see any other operator try to enter the New Hampshire market or are you happy with the sole operator agreement with DraftKings?
DM: Per our contract with DraftKings, they are the sole operator for mobile and retail sports wagering in New Hampshire through at least June 2026.
We are extremely happy with the relationship between the New Hampshire Lottery and DraftKings.
