New York Sports Betting May Finally Arrive
After a massive push for mobile sports betting legalization, New York may be on the cusp of legalizing it. Senator Addabbo is the primary figure to thank for that. New Jersey siphons millions of dollars in sports betting revenue from New York. It remains one of the biggest reasons Senator Addabbo tried tackling mobile sports betting. New Jersey’s mobile sports betting industry was taking money away from New York’s retail sports betting industry.
Why New York Sports Betting Is So Close
The deadline to add sports betting into New York’s budget was March 31st. However, officials are still negotiating sports betting after that deadline. The negotiations going into overtime suggests two things:
The financial value is certainly important. In 2019, New Yorkers wagered over $800 million in New Jersey. That's money that New York sportsbooks couldn’t pay out in winnings and then be taxed on. (The whole $800 million wouldn’t be taxed – it’d be top-line revenue, not taxable revenue.) However, that problem will only get worse over time. As more northeastern states – not to mention Canada – legalize sports betting, regional pressure will only increase for New York. If New York doesn’t create a competitive sports gambling industry, then it risks being left behind by surrounding markets.
- Mobile sports betting is believed to add enough value to New York to add it to the budget immediately.
- A deal is close enough that it can be hammered out in a few days.
What Mobile Sports Betting Could Look Like In New York
Mobile sports betting will follow one of two models in New York. One could be a free market mobile sports betting industry. The other could be a lottery-run mobile sports betting industry. Senator Addabbo favors the free market, while Governor Cuomo favors the lottery-run model. The free market model would attract more sportsbook operators and likely lead to better bonuses for bettors. Forcing sportsbooks to outdo one another should benefit their customers. However, the lottery-run model would lead to more tax revenue for the state. That’s the tradeoff being argued behind closed doors.
We’re putting our bets on Senator Addabbo’s proposal largely coming through. Governor Cuomo is one of several stakeholders who Senator Addabbo has courted to get this bill this far. He has won bipartisan agreement for his bill, which gives him some negotiating power against the Governor.
However, the winner will have to ensure that negotiations properly include tribal casinos. Native American casinos are on tribal lands, so everyone at the negotiating table will have to decide how to handle:
In addition, ensuring that tribal casinos remain involved in sports betting will ensure that all parts of New York’s sports betting market are competitive. It will maximize revenue, market opportunities, and competitiveness.
Mobile sports betting has a good chance of arriving in New York. Elected officials are figuring out the details as we speak. Sports betting reform could make New York one of the most competitive sports betting states in the country. Big things have small beginnings, and these ongoing negotiations are setting up big things for New York's sports betting industry.
- Wagers placed on tribal lands
- Revenue directed to tribal casinos or state coffers
- The entire issue of tribal exclusivity