New York Sports Betting Handle Climbs in Face of Prediction Market Competition

New York sports betting handle continues to grow despite claims from the regulated gambling industry that sports prediction markets are siphoning away business. A billboard at Madison Square Garden features actor Jamie Foxx promoting the BetMGM Sportsbook. Sports betting handle in New York continues to expand, despite concerns about prediction markets stealing play. (Image: Shutterstock) The New York State Gaming Commission reports that sports bettors risked more than $2.4 billion in September. That marked a 5% gain on September 2025, an increase of nearly $114 million in wagers. Through September, 2026 sports betting volume is 3.7% higher than a year ago, with bettors staking roughly $697 million more than they did a year ago. Growth is even stronger during the state’s 2026/2027 fiscal year: over the first six months starting in April, sports betting handle reached nearly $12.6 billion, marking a 6.9% increase over the same period in 2025. The increased play, however, hasn’t translated to increased revenue for oddsmakers. With bettors faring better over the past six months, sportsbook revenue declined 5.8% to $1.1 billion. The revenue decline arose from sportsbooks’ hold easing from 10% to 8.8%. Are Prediction Markets Hurting Sportsbooks? Representatives of the legal gaming sector maintain that sports trading on federally regulated prediction markets encroaches on state-regulated sportsbooks, diverting volume from the nine platforms featured in New York revenue reports. Prediction markets reject that they offer gambling, arguing that traders aren’t betting against the house but other traders. Regardless of which claim carries more legal weight, the American Gaming Association (AGA) maintains that prediction markets are costing states considerable tax revenue. Prediction market platforms are offering illegal sports betting nationwide outside the state and tribal regulatory frameworks that protect consumers. They override voter decisions, bypass key consumer protections, ignore state and tribal laws, and avoid licensing and taxes,” the AGA said. A running ticker on the group’s website shows projected lost state gaming tax revenue nearing $1.6 billion “since prediction markets began offering back-door sports betting” in late 2025. The AGA says that means states have less money to allocate to schools, hospitals, infrastructure, and other local funding initiatives. “Prediction markets contribute nothing,” the AGA said. New York Sports Betting New York is the largest sports betting state among the 39 states that have legal sports gambling. The state is home to Bally Bet, BetMGM, BetRivers, Caesars Sportsbook, DraftKings, theScore, Fanatics, FanDuel, and Resorts World Bet. New York’s sports betting handle continuing to grow even as prediction markets increase trading volume offers a counterpoint for market proponents. In Illinois, the second-largest sports betting state, online handle on professional and college sports through August 2026 totaled $9.3 billion. That marked a 5.7% increase from 2025, when bets totaled $8.8 billion. However, not every sports betting state is seeing higher handle in 2026. In New Jersey, sports betting handle is down 4.1% through September, with bets declining from $8.6 billion to $8.3 billion. The post New York Sports Betting Handle Climbs in Face of Prediction Market Competition appeared first on Casino.org.