Lawmakers in New York have reached a tentative deal with Governor Cuomo to introduce legal and regulated sports betting in the state. This comes as the state tries to fill a near $60 billion revenue shortfall. The Governor has estimated that mobile sports betting could generate as much as $500 million in annual revenue for the state. $200 million of that are gambling dollars that are already spent by New Yorkers in New Jersey’s flourishing online betting market.
The state budget for the 2022 fiscal year contains a proposal to bring legal mobile sports betting, with the following key points:
- The industry will be run by the New York State Gaming Commission.
- The Commission will accepts bids for proposals for up to two providers who will run mobile sports gambling in New York.
- The operator/s will be required to partner with one of the commercial or tribal casinos in the state.
- Potential mobile sportsbook partners include Bet365, BetRivers, FanDuel and DraftKings.
- These four major operators will be allowed to subcontract to minor providers (skins). Lawmakers have commented that there could exist as much as 20 skins, but definitely no less than four.
In July 2019, New York opened its doors to retail sports betting for the first time. It is expected that online wagering will make up more than 90% of the state’s betting handle.
Governor Cuomo has promised that the three gaming tribes will also be included in in an online sports betting industry.
Democratic lawmakers had been hoping for a more competitive model, however the governor’s preferred model eventually won out – despite stakeholder opposition. Cuomo has always had a conservative viewpoint on online gambling and was dismissal of its potential for years following the Supreme Court decision to do away with the federal gambling ban. However, this year, when faced with a multi billion dollar shortfall, the governor was forced to change his tune.