Check the thermometer in hell: Governor Andrew Cuomo is ready to bring NY sports betting into the modern age.
Cuomo will include New York mobile sports betting in its 2021 policy proposals for the state, according to a report in the NY Daily News. The governor has been consistently against mobile betting for the past few years, claiming the state needs a constitutional amendment to legalize it.
It appears that a multi-billion dollar budget deficit fueled by the pandemic tempered Cuomo’s opposition – and not a moment too soon for a state bleeding sports betting for neighbors New Jersey.
“At a time when New York is facing a historic budget deficit due to the COVID-19 pandemic, the current online sports betting structure is an incentive for a large portion of New Yorkers to travel out of state to complete online sports betting or continue to patronize black markets, “Cuomo said in the report.
While the news may baffle longtime industry watchers, Cuomo stated in December that he viewed mobile sports betting and legal marijuana as potential associations for the state budget crisis.
How big could New York sports betting be?
Mobile betting in the Empire State could become the country’s crown jewel in the emerging US sports betting market. A Eilers & Krejcik Gaming February 2020 estimated New York bets report $ 837 million in New Jersey in 2019.
The report shows roughly 20% from New Jersey Sports Betting comes from New York City. Consider the increase in NJ sports betting handle from 2019 to 2020:
- 2019: $ 4.5 billion
- 2020: $ 5 billion *
* The first 11 months
New Jersey is approaching 6 billion dollars under control for 2020, with no March madness Betting and four months without major professional or college sports. Now imagine a more convenient legal option for the approximate 8.4 million People in the boroughs and New York’s potential becomes apparent.
“New York has the potential to be the largest sports betting market in the US. By legalizing online sports betting, we want to generate millions in tax revenues here at home, which only strengthens our ability to rebuild from the COVID. 19 crisis, ”Cuomo said in a statement to the Daily News.
What mobile sports betting could look like in New York
The Daily News report shows that Cuomo will ask lawmakers to require mobile operators to connect to an existing casino. Current law allows sports betting in New York only in person at existing casinos.
These include both commercial and tribal operations:
- Rivers Sportsbook (Schenectady)
- FanDuel Sports Betting (Tioga Downs)
- DraftKings Sports Betting (del Lago Resort Casino)
- Turnstone (Syracuse)
- Point Place (Bridgeport)
- Yellow Brick Road Casino (Chittenango)
- Resorts World Catskills (Monticello)
- Akwesasne Mohawk Casino (Hogansburg; imminent start)
The original proposal does not appear to include a proposed tax rate or license fee. To compete with the New Jersey sports betting market, New York may need to align itself within reach of the market 13% from Garden State Tax on mobile and online income.