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Online gambling NY — a complete guide

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Checked by Paul P.

Online gambling in New York is now legal. The Empire State launched its first 9 licensed operators in January 2022.

Every day seems to bring fresh news about NY online gambling, so I’ve compiled a master page of info to save you dozens of hours of research.

I’ll show you how to properly report and pay your NY gambling taxes, as well as the evolving legal landscape of gambling in NY.

New York online gambling taxes

New York (NY) has legalized some forms of gambling, but not all. While online sportsbooks, retail casinos, Daily Fantasy Sports (DFS), the New York Lottery, and horse racing are regulated, online casinos, as it stands, are not.

As a consolation, New Yorkers are free to engage in sweepstakes casinos, offering casino-style games with the opportunity to redeem virtual currency for gift cards and cash prizes.

Aside from the 24% federal tax rate, New Yorkers are subject to one of the most exorbitant state taxes on gambling winnings. In fact, NY bettors are subject to an automatic state withholding rate of 8.82% if federal withholding is required.

The 8.82% NY state withholding applies if sports betting, wagering pools, and lottery winnings exceed $5,000, or if all other forms of gambling winnings go above $600 and are at least 300x your wager. 

If gambling winnings do not meet the federal thresholds, then NY players are still obligated to declare their winnings based on a gradual income tax rate, ranging from 4% to 10.90%.

Tax rates for different gambling types

NY does not tax different types of gambling winnings at different rates, no matter where your winnings came from. Sports betting, sweepstakes casinos, the NY Lottery, or horse racing winnings are all taxed as regular income in New York’s graduated income tax system.

Here’s a breakdown of NY state gambling taxes based on the automatic federal withholding rates and the state’s gradual income tax rate:

Gambling typeTax rateAutomatic withholding
Sports betting4% – 10.90% (based on total income)Only if federal withholding applies (24% federal tax applies if winnings exceed $5,000, or $600 if winnings are 300x the wager; 8.82% state withholding follows)
Horse racing4% – 10.90%Only if federal withholding applies (24% federal tax applies if winnings exceed $5,000, or $600 if winnings are 300x the wager; 8.82% state withholding follows)
Online lottery4% – 10.90%Yes for prizes over $5,000 (state automatically withholds 8.82%)
Sweepstakes casinos4% – 10.90%No automatic withholding, regardless of the amount won.
Daily fantasy sports4% – 10.90%No automatic withholding, regardless of the amount won.

Important note: All types of gambling in NY are taxed as regular income and based on the standard 8.82% tax rate or the state’s gradual income tax rate. However, withholding rules differ based on whether you won money from sports betting, sweepstakes casinos, etc. 

Your final taxes owed depend on your total income, not just the money you won. Gambling winnings also move you into a higher tax bracket, as they raise your total income.

How does your income affect taxes in New York?

Since NY has nine tax brackets, ranging from 4% to 10.90%, your online gambling winnings are added to your overall total taxable income, which automatically determines your final tax rate too.

Below is a breakdown of how different income levels, including gambling winnings, impact your final state tax rate:

Tax rateTaxable income rangeExample earningsExample winningsTotal taxable income
4.00%$0 to $8,500$8,000$500$8,500 (4% tax)
4.50%$8,501 to $11,700$10,000$2,000$12,000 (partial 4.5%)
5.25%$11,701 to $13,900$12,000$2,000$14,000 (partial 5.25%)
5.50%$13,901 to $80,650$50,000$10,000$60,000 (partial 5.5%)
6.00%$80,651 to $215,400$90,000$15,000$105,000 (partial 6%)
6.85%$215,401 to $1,077,550$200,000$50,000$250,000 (partial 6.85%)
9.65%$1,077,551 to $5,000,000$1,000,000$200,000$1,200,000 (partial 9.65%)
10.30%$5,000,001 to $25,000,000$5,000,000$500,000$5,500,000 (partial 10.30%)
10.90%Over $25,000,000$25,000,000$5,000,000$30,000,000 (10.90%)

Does New York have local taxes?

If you’re gambling from New York City (NYC) or Yonkers, then you must also pay local or city tax. NYC players must disclose all winnings, even if they were not held back at the time of payout.

On the other hand, Yonkers players must pay Yonkers tax if they live in the city, while non-residents must comply with the non-resident tax if they win money there.

How to pay gambling taxes in New York?

Winning any money while within the borders of NY means you’ll need to declare it and also pay the taxes. Below is a step-by-step guide that will help you meet your obligations.

1. Find out if your winnings are automatically taxed

The state of NY will not automatically withhold taxes on your gambling winnings unless, of course, federal withholding applies.

2. Get your hands on the relevant NY tax forms

If federal and state taxes are withheld, the online betting establishment must issue the following forms:

Regardless of whether you’ve received the above-mentioned forms or not, you are still responsible for declaring and paying taxes on all applicable online gambling winnings. When in doubt, you should still go ahead and report all gambling winnings, as it is better to overreport than underreport.

3. Report your online gambling winnings on your NY State tax return

You’ll need to fill out the following sections on Form IT-201, which is New York’s income tax return form:

4. Pay remaining taxes

Since online gambling winnings are added to your total taxable income, they can increase your overall tax bracket.

Withholding NY tax breakdown

Your total online gambling winnings are added to your annual income in NY, so this will determine how much tax you owe. Let’s take a look at withholding rules based on different gambling verticals in NY.

Sports betting

Federal tax applies to sports betting winnings if you receive over $5,000 or 300x your bet. For example, let’s say you win $6,000 in a parlay bet — aside from the 24% federal tax, an additional 8.82% NY state tax will be deducted before payout.

Horse race betting

Federal tax applies if you win over $1,000 or if the odds were 300 to 1 or more. For example, if you win $1,500 in a parlay bet with 500x odds, the racetrack will automatically withhold the 24% federal tax plus the 8.82% NY state tax.

Daily fantasy sports

If your DFS winnings exceed IRS thresholds, then you are liable for tax on DFS winnings. For example, if you win $1,500 in a DraftKings DFS contest, but no federal taxes were withheld, you must still declare and pay the full amount when filing NY state taxes.

Online lottery

If your NY Lottery winnings go over $5,000, you are liable for a 24% federal tax withholding as well as an 8.82% state withholding tax amount. Winnings must be reported on Form IT-201.

Sweepstakes casinos

Federal taxes are applied to winnings if they exceed the IRS thresholds. If you redeem Sweeps Coins for cash prizes, it’s taxed as gambling winnings. Even if you redeem Sweeps Coins for gift cards or a physical prize, you still need to consider it taxable income.

What happens if you don’t report winnings in NY?

Failing to declare and pay taxes on gambling winnings in New York could lead to consequences such as fines and penalties. What’s more, while the chances of an IRS audit are slim, it can happen. If it does, and you owe taxes on gambling winnings, it may very well lead to severe consequences.

So, when in doubt, it’s better to overreport than to underreport. Ultimately, ensure that you keep track of all gambling winnings and losses and comply with federal, state, and local tax rules.

Right, so what’s legal online gambling in New York, and what isn’t? Sports betting is definitely the big one in NY. New York does have casino and poker gaming available, but only in the social gambling format.

That’s technically ‘fake money betting’, but you can buy virtual currency and win cash prizes from games, so social and sweepstakes spots functionally act as ‘mini online casinos.’

From the other forms of gambling, there’s plenty of offline stuff, including many physical casinos in the wider NYS area. The lottery and New York DFS make up the other big verticals. The gambling age in New York is 18 in most cases, but anything online is 21+.

Gambling verticalOffline legal ageOnline legal ageOnline since
Sportsbooks21212022
Social betting appsN/AN/AInfo not available
Casinos18/21N/AN/A
Social casinosN/A21Info not available
Poker18/2121N/A
Lottery18N/AN/A
Horse race betting18N/AN/A
Daily fantasy sportsN/A212016
Bingo18N/AN/A

Online sports betting in NY Legal since 2021

Sports wagering was technically signed into law by Governor Cuomo in 2021, but NY didn’t get it till 2022.

How does New York fare for sports betting? Pretty good on the whole; the best New York online gambling sites fall well within the upper-average parameters, except in one area. Most sites still don’t have enough options to bet on, we usually expect around 15 in the Empire State.

That said, there are many different leagues and markets within the sports available, which is a plus.

Online casinos — what are your options?

Online sportsbooks have been legalized in the US, online casinos have not. Does this mean you can’t spin slots? No. There are two main options available to you. The first; just play offline — inconvenient if you live in NYC, but casinos exist on tribal lands.

Another option? Sweeps casinos. Predominantly ‘free versions’ run by established gambling operators such as BetRivers.NET, they operate in a legal area that is more beige than gray. They do this by offering cash prizes for play and selling virtual currencies, rather than directly allowing you to gamble. These are what we recommend to NY gamblers.

Most of these are located and registered on US soil, meaning they’re accountable to US player protection laws.

Online poker — available at social casinos

The poker situation is practically the same as the casino one. Online gambling casinos aren’t fully a thing in NY, but you can play offline, or use sweeps casinos to play poker.

Fans who are looking for poker gambling in New York are actually pretty lucky here, because BetRivers.NET is one of the social options available in NY.

They’re part of Rush Street Gaming, who operate fully-fledged online casino brands SugarHouse and BetRivers in practically every legal state. They’re also one of the few social casinos to run live dealer game streams you can participate in.

That means you’ll get to play online poker whether it’s on a virtual poker table or a human-operated one.

Other forms of gambling in New York

When it comes to stuff beyond the big three, New York online gambling still has plenty to provide. Most prominent among these is probably the lottery, with most of the daily numbers NY has to offer being regularly updated online. New York DFS (Daily Fantasy Sports) is next in the popularity line.

NY gambling in the lottery sphere is a little weird when it comes to online. As it stands, it seems like you can’t buy individual lottery tickets online, and will have to visit a local retailer.

However, you can purchase and manage subscriptions to certain lotteries such as Mega Millions online. In FY 2021, the lottery generated $8.59 billion in revenue, $3.59 billion of which went to improve education.

lottery-next-to-ny-map

NY Lottery

There are plenty of lottery games you can play in NY. The online/offline divide is a bit odd. Individual tickets are primarily sold offline, however, you can purchase and manage lottery subscriptions to events such as Mega Millions online.
laptop-with-US-sports-icons

Daily Fantasy Sports

Build up a team of your favorite athletes in your preferred sport, and watch their real-life stats convert into fantasy points you can use to win games against other managers. FanDuel sportsbook is one of the operators offering these online games in NY.
bingo-card-and-numbers

Bingo

Bingo halls are primarily located offline throughout the state. You must be 18 to play. The game works simply; players are given a card with tiled numbers and mark the randomly generated numbers called out by the host. Victory is achieved when a certain threshold of numbers is marked.

Offline gambling in New York state

While bingo and the lottery make up a good chunk of NY’s offline gambling, the main talking point here is the offline casino section. New York gambling laws technically state that you have to be 18 to play, though it’s a little murky until you get to 21 due to alcohol laws, so players younger than that might still be turned away.

The offline casino sector is primarily serviced by with wider NYS area, with laws having historically relegated casinos to tribal land, and having kept casinos out of NYC. However, this changed in 2013, legalizing commercial casinos and allowing them within city limits. To date, only one exists inside the city (Resorts World New York City).

There are technically 25 casinos in the Empire State, once you include all the Racinos, though Monticello has closed the casino part of its racetrack, bringing it back down to an even two dozen.

RetailLaunch dateTypeLocation
Akwesasne Mohawk CasinoSeptember 2,0 1940Native AmericanHogansburg
Batavia Downs CasinoFebruary 1, 2017Racetrack casinoBatavia
Del Lago Resort and CasinoOctober 11, 2006PrivateTyre
Empire City Casino at Yonkers RacewayMay 23, 1962Racetrack casinoYonkers
The Fairgrounds Gaming2010Racetrack casinoHamburg
Jake’s 58 Hotel & CasinoMay 2017PrivateIslandia
Finger Lakes Gaming and Race TrackJan 1, 2004Racetrack casinoFarmington
Lakeside EntertainmentMarch 13, 2013Native AmericanUnion Springs
Mohawk Bingo Palace and CasinoMarch 1, 2018Native AmericanAkwesasne
Monticello Gaming & RacewayJune 27, 1958Racetrack casinoMonticello
Point Place CasinoFebruary 8, 2018Native AmericanBridgeport
Resorts World CatskillsFebruary 8, 2017PrivateKiamesha Lake
Resorts World New York City2011Racetrack casinoOzone Park
Rivers Casino & ResortJuly 2, 2020PrivateSchenectady
Saratoga Casino and Raceway1941Racetrack casinoSaratoga Springs
Seneca Allegany CasinoJuly 3, 2007Native AmericanSalamanca
Seneca Buffalo Creek CasinoDec 31, 2002Native AmericanBuffalo
Seneca Gaming and Entertainment IrvingN/ANative AmericanIrving
Seneca Gaming and Entertainment Oil SpringJune 9, 2006Native AmericanCuba
Seneca Gaming and Entertainment SalamancaN/ANative AmericanSalamanca
Seneca Niagara CasinoDec 31 2002Native AmericanNiagara Falls
Tioga Downs & CasinoJuly 1,6 1993PrivateNichols
Turning Stone Resort & CasinoJuly 16 1993Native AmericanVerona
Vernon Downs & CasinoJuly 1, 1953Racetrack casinoVernon
Yellow Brick Road CasinoJune 2, 2015Native AmericanChittenango

NY online gambling and safety

Gambling in New York is legal, and legalization requires enforcement. That’s carried out by the New York Gaming Commission, who licenses and regulates the legal sportsbooks in New York state.

All licensed and legal operators are displayed on a list on the NYGC’s website, so you can always make sure you’re playing at a legal site. When it comes to online gambling New York also allows you to download PDFs of the weekly and monthly financial reports of each operator directly from their list, increasing the transparency.

Gambling sites are required to have info on responsible gambling, linking to information and help organizations like Gamblers Anonymous, New York Problem Gambling Resource Centers, and the New York Council on Problem Gambling.

The NYGC, NYCPG, and the Office of Alcoholism and Substance Abuse Services (OASAS), all work to ensure gambling is a safe pastime in the Empire State.

FAQs

Where can I gamble online in NY?

You can gamble in-house at any of the casinos and racetracks in the state, or online at any of the approved gambling sites. 

What forms of gambling are allowed in NY?

Online gambling in New York is dominated by the sportsbook crowd, though casino and poker players have some options too. There’s also plenty of offline stuff, including everything from bingo and raffles to horse races and a swathe of casinos located throughout the state.

What’s the legal age to gamble in NY?

The gambling age in New York is 18 for most forms of gambling. Online gambling is always 21+, and some casinos also require you to be 21 to gamble.

What betting sites are legal in NY?

  • FanDuel
  • BetMGM
  • PointsBet
  • Caesars
  • Wynn
  • Kambi
  • BetRivers
  • Resorts World

    Check out our top picks from the bunch , brought to you by our data-driven reviewing systems.

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