New York Sports Betting Handle Hits September Record Despite Prediction-Market Growth
New York's mobile sportsbooks accepted a September-record $2.4 billion in wagers, despite growing competition from prediction markets offering sports event contracts outside the state's traditional gambling framework.
According to the New York State Gaming Commission, September 2026 handle reached $2.402 billion, up 5% from $2.288 billion a year earlier.
However, increased wagering did not translate into higher New York sports betting revenue, and the figures do not establish whether prediction market apps are drawing customers away from licensed operators.
Handle rises as sportsbook revenue falls
The eight New York sports betting apps generated $159.4 million in gross gaming revenue during September, down 17.7% year over year. Operators retained about 6.6% of wagers, down from 8.5% in September 2025.
That distinction matters. Handle measures the amount wagered, while gross gaming revenue represents the amount sportsbooks retain after paying winning bets, before operating expenses.
FanDuel led the state with $904.7 million in handle, a 14.5% annual increase. DraftKings followed with $840.1 million, down 3.5% from September 2025.
The revenue decline also affected state finances. New York taxes mobile sportsbook gross gaming revenue at 51%, with September producing approximately $81.3 million in revenue allocated to education, compared with $98.8 million a year earlier.
Prediction markets continue expanding
The sportsbook figures arrived amid substantial growth in sports prediction markets. An Oct. 7 Legal Sports Report analysis, citing Citizens and Aldrin Research, estimated $89 billion in prediction-market notional trading volume over the preceding 30 days.
That figure is not directly comparable with New York sportsbook handle. It covers a broader market and measures contract trading rather than conventional wagers.
The same report cited Sensor Tower data showing Kalshi accounted for 32% of U.S. and Canadian real-money gaming app downloads during NFL Week 4. DraftKings followed at 12%, Polymarket at 11% and FanDuel at 8%.
Those figures suggest growing competition for customers, although newer platforms naturally have a larger pool of potential first-time users. App downloads also do not establish betting market share or how much money customers spend.
Regulatory dispute continues
New York remains among the states challenging the legality of sports prediction markets.
On July 31, Attorney General Letitia James and Gov. Kathy Hochul announced a lawsuit accusing Kalshi of operating an unlicensed gambling business. The state argues that sports event contracts should be subject to its gambling laws, including licensing requirements and consumer protections.
Kalshi maintains that its contracts fall under federal commodities regulation and that states cannot independently prohibit trading on federally registered exchanges.
The Commodity Futures Trading Commission backed Kalshi's federal regulatory position in August, exercising emergency authority and directing the exchange to continue complying with the Commodity Exchange Act's core principles. The broader question of state versus federal authority remains unresolved.
The financial stakes are substantial. State Comptroller Thomas DiNapoli reported in September that mobile sports betting generated $1.3 billion in state revenue during fiscal 2026, making it New York's second-largest gaming revenue source behind the lottery.
For now, September's figures demonstrate that licensed sports betting continues to grow in New York despite prediction markets' expanding presence.
