Mobile Sports Betting Added To Budget In New York

MOBILE SPORTS BETTING TO GET NY APPROVAL

Governor Andrew Cuomo, Senate Majority Leader Andrea Stewart-Cousins and Assembly Speaker Carl Heastie announced an agreement on the FY22 New York State Budget which includes the legalization of mobile sports betting. New York plans to approve an online sports betting model that was backed by Governor Cuomo, Ryan Butler of The Action Network reported. Despite Cuomo's support, the bill is largely opposed by most state lawmakers and the majority of the gaming industry.

Under the bill, which will be passed as part of the state's $200B FY22 budget, the New York Lottery would reportedly issue requests for proposals from two mobile betting operators, which would subcontract out skins to four sportsbooks. While many details of the model were not disclosed, Senator Joseph Addabbo told Action that the New York Gaming Commission would work on further regulatory follow-up measures. Officials are aiming to launch online sports betting in the Empire State before the 2021 football season.

Butler noted that this model appears to particularly benefit the four existing upstate casino sportsbook partners: DraftKings, FanDuel, BetRivers and bet365, all of which could bid for one of a limited number of licenses. It remains unclear if “second-skin” partners such as Penn National’s (PENN) Barstool Sports and PointsBet were eligible to bid for a license. The Oneida Nation, which had a preemptive deal with William Hill (WIMHY), Akwesasne Mohawk, affiliated with Fox Bet and Seneca tribes reportedly could be excluded from statewide mobile wagering. Legislation will also exclude in-stadium betting kiosks at at major New York sports venues lawmakers had previously supported. Chris Sommerfeldt and Denis Slattery of the New York Daily News noted that New York will be able to rake in as much as $99M this fiscal year from taxes on mobile betting, with the revenue expected to increase to $500M per year.

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William K. 1 month ago Member's comment

Quite interesting and also very disturbing. There was a good reason for restricting gambling before and it is still applicable. But besides the moral issues and consequences there is a financial issue. Every cent of that profit from gambling is money removed from the economy, where it could have been spent on buying goods and services produced by humans working at jobs. That is the ignored problem of even legal gambling, which is that it is taking money away from other segments of the economy. But all that the city government can see is the profit they can grub away from the gambling businesses.

So it appears that the benefits overall are a bit exaggerated.