- Bally’s Chairman Soo Kim argues that high tax rates benefit operators by limiting competition, citing Rhode Island’s monopoly model as proof.
- New York’s 51% tax rate hasn’t helped Bally’s gain traction, as the company holds just 1.1% market share compared to FanDuel’s dominant 65.8%.
- Bally’s retained only $3.8 million in net revenue over nine months, raising serious questions about profitability in high-tax markets.
NEW YORK CITY – Bally’s Chairman Soo Kim recently told attendees at ICE’s World Regulatory Briefing that higher gambling taxes can actually benefit operators by reducing competition.
According to Kim, higher tax rates reduce market competition, which is good for the industry. He cited Rhode Island as an example of this idea in action, as Bally’s runs with a casino and internet gambling monopoly while paying the highest taxes in the nation.
When compared to Bally’s actual performance in the mobile sports betting market in New York, the chairman’s remarks offer an intriguing contrast. New York has one of the highest tax rates in the country, at 51% on gross gaming revenue. Kim’s reasoning suggests that this should provide the perfect environment for well-established firms to prosper with less competition.
The Numbers Tell a Different Story
However, between April and December 2025, Bally’s recorded some underwhelming results. The company saw $113.7 million come through in wagers and pocketed $7.8 million in gross revenue over that span. While respectable on the surface, these figures shrink dramatically next to what other New York sportsbooks achieved during the same stretch.
FanDuel topped the market with $838.4 million in GGR and $6.9 billion in handle. With $158.6 million in GGR, Fanatics, a relatively young platform, processed $2.1 billion in handle. BetMGM recorded $1.4 billion in handle and $113.7 million in GGR, ranking third among the operators displayed.
Bally’s position becomes clearer when the market share is broken down. Of these four operators, FanDuel holds roughly 65.8% of the market, followed by Fanatics with 19.7% and BetMGM with 13.7%. Just 1.1% of the market is held by Bally’s.
The hold percentages provide more evidence of the competitive gap. Bally’s monthly hold rates ranged from 4.39% to 9.40% during the reporting period. FanDuel’s hold percentages, which ranged from 9.82% to 15.32% in most months, were over twice as high as Bally’s.
Over the course of the nine months, Bally’s kept around $3.8 million in legal sports betting revenue from the platform provider after applying New York’s 51% tax to GGR. When operational expenses like marketing, technical infrastructure, customer support, and risk management systems are taken into consideration, this statistic casts doubt on success.
In the summer of 2025, Resorts World Bet exited the New York sports betting market – a year after Wynn Bet shut down operations. Bally’s could be on a similar path.
