New York Sports Betting Update

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NEW YORK (Reuters) - New York Governor Andrew Cuomo, facing an economic chasm resulting from COVID-19 shutdowns, wants to follow neighboring New Jersey in legalizing mobile sports betting. New York Sports Betting Update – Governor Cuomo Suggests Mobile Sports Betting Mobile sports betting in New York is not legal statewide yet. If you are on the premises of an upstate NY casino, you can use your mobile device to place a sports bet. There are currently seven physical sportsbooks that are legal and live in upstate New York.

• On July 16, 2019, the first legal sports bets were placed in New York. Gary Pretlow - a New York lawmaker and chair of the state's racing and wagering committee - was among the first to place.
• He gave an update on the subject in his budget address New York governor still open to sports betting but prefers lottery model Cuomo claims a single-operator model would generate 10-times the revenue for the state since all sports betting winnings would go to the state’s lottery.

ATLANTIC CITY, N.J. (AP) — On a day when New York’s governor did an about-face and embraced mobile sports betting as a way to deal with financial losses stemming from the coronavirus pandemic, a company that tracks gambling legislation and performance predicted that revenue from legal sports betting could reach $3.1 billion in 2021 and as much as $10 billion within five years.

VIXIO GamblingCompliance issued a report Wednesday projecting that at least six and as many as 14 additional states will legalize or expand sports betting in 2021. That fits with projections by numerous analysts that nearly half the country may have legalized sports betting by the end of this year.

The company estimated that revenue from sports betting would reach $2.6 billion to $3.1 billion this year, an increase of as much as 100% over the $1.55 billion it estimates will have been generated from sports betting in 2020 (December figures have not yet been reported from most states).

By 2025, that figure could hit $10 billion, the report said.

Sports betting revenue represents money remaining after sportsbooks pay off winning bets and other expenses. It is separate from — and much less than — the total amount wagered on sports, which is called “handle.” States collect taxes on the amount of money their sportsbooks retain from sports betting, not on the total amount wagered.

The report came as New York Gov. Andrew Cuomo reversed his long-held opposition to mobile sports betting, opening the possibility of a lucrative new market in one of the nation’s most populous states. It also could take a big bite out of New Jersey’s leading position in the national sports betting market; about 20% of New Jersey’s sports bets are placed by New Yorkers crossing the state line.

At a news conference, the Democratic governor proposed having New York run sports betting operations to maximize tax revenue.

“At a time when New York faces a historic budget deficit due to the COVID-19 pandemic, the current online sports wagering structure incentivizes a large segment of New York residents to travel out of state to make online sports wagers or continue to patronize black markets,” he said. “New York has the potential to be the largest sports wagering market in the United States, and by legalizing online sports betting, we aim to keep millions of dollars in revenue here at home, which will only strengthen our ability to rebuild from the COVID-19 crisis.”

He called on the New York State Gaming Commission to issue a request for proposals to select and license a sports operator or platform to offer mobile sports wagering in the state.

Yaniv Sherman, head of commercial development at 888 Holdings, a sports betting company, welcomed a possible full-scale entrance of New York to the national market.

“New York has always been the critical, strategic and much-anticipated component of any U.S. online gambling agenda, and it represents one of the top three states in terms of economic potential,” he said. “It’s no surprise that this is moving on the back of budget deficits in states like New York, and I think it’s a great way of bringing tax dollars from offshore operations to the city and state coffers.”

Likewise, Adam Greenblatt, CEO of BetMGM, said his company is eager to enter New York’s expanded market, saying Cuomo’s move “has the potential to bring leaking tax dollars back to New York from offshore books and nearby states.”

Sara Slane, a gambling analyst and former official with the American Gaming Association, predicted New York quickly would become a top-tier state in the sports betting market.

“Gov. Cuomo’s embrace of mobile sports betting immediately positions New York to soon lead all other states and generate significant revenue for state coffers,” she said. “New York, with a population of nearly 20 million, dwarfs any other state with legal betting and should have no problem regularly topping $1 billion a month in wagers.”

New York, like most states, expects to have a smoking crater where its budget used to be due to the economic impact of the coronavirus pandemic. That is expected to play a large part in additional states considering or enacting sports betting legislation this year.

The report predicted an aggressive campaign to legalize online sports betting in Texas this year, with team owners allied with DraftKings, FanDuel and BetMGM to press for legalization. That would require a constitutional amendment and a stateside referendum.

It forecast renewed legislative efforts to enact sports betting in Massachusetts, Georgia, Ohio and North Carolina, among others, while noting that sports betting efforts in Florida and California remain complicated by the impact they would have on tribal gambling operations and rights.

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Associated Press Writer Marina Villenueve in Albany, New York, contributed to this report.

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Follow Wayne Parry at http://twitter.com/WayneParryAC

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While online wagering on sporting events has become an industry worth billions of dollars already, there are still several potentially lucrative markets it has no presence in, like New York City and Detroit. That may change soon, though, as both New York and Michigan are moving toward potential online sports betting rollouts.

Michigan is much more advanced in that process as it stands right now. However, the prospect of online sportsbooks in New York is as tantalizing as it gets.

The latest on the online sports betting rollout in Michigan

For Michiganders hoping to place some legal wagers without leaving their state before 2020 ends, that looks unlikely. The only option for doing that looks like visiting tribal casinos’ retail sportsbooks.

While regulators had hopes of launching online Michigan sports betting earlier this month, next month is now the earliest timeline. The wheels are turning toward that end. If everything goes well, mid-January is realistic.

Last week, the Michigan Gaming Control Boardissued 15 provisional licenses to operators. Essentially, that means the MGCB has started the process of completing all the necessary compliance inspections with the 15 licensees.

Upon successful completion of those reviews, permanent licenses are the next step. Then, the MGCB will announce a go-live authorization date for each licensee. Those may or may not come in concert with each other.

The 15 provisional licensees include well-known sportsbook brands like BetMGM, BetRivers, DraftKings, FanDuel, PointsBet, and William Hill. Handicapping the field as to which brand(s) will actually go live first is just a matter of taking wild guesses at the moment.

Multiple brands, like BetRivers, DraftKings Sportsbook and FanDuel Sportsbook are already offering sign-up bonuses for Michigan registrations. If all 15 provisional licenses become permanent licenses within a short time frame, the fight for market share could be quite fierce right off the bat.

It’s easy to understand why all of these major companies are in on Michigan. Not only does the state boast all the Detroit professional sports teams but two Big Ten college sports programs as well.

If that is what makes Michigan sports betting attractive, New York is an even bigger prize for operators. However, things are far less certain in the Empire State right now.

Not just a matter of when, but also if, in New York

As most New Yorkers probably know, the only legal path for sports betting in their state is visiting a retail sportsbook inside an upstate casino. Online wagering requires travel to New Jersey or Pennsylvania.

There might be significant momentum to change that, however. The latest push is more about revenue for the state than solely the question of gambling expansion.

As the state faces a potential $15 billion deficit, it’s looking for more sources of tax dollars. Thus, online sports betting legalization is on the table in Albany again.

New York Gov. Andrew Cuomo has moved off his stance that the only path for such legalization is a constitutional amendment, somewhat. Cuomo expressed his preference that the state wait to see what kind of aid it might get from the US federal coffers in the near future before moving on gambling expansion.

Following that course of action would put the NY legislature in action on this front in March or April. Some New York lawmakers want to do that now.

State Sen. Joseph Addabbo Jr. has been one of the biggest proponents of New York online sports betting legalization. He’s on the forefront again, stressing the possibility of including legalization in a revenue bill that could see votes this year.

There are details to work out in that scenario. For example, a proposal that passed the New York Assembly last year gave each licensee a single skin for online wagering. Some legislators would like to expand that to at least two.

If they are to reach a deal included on a revenue bill in 2020, it will have to come together very quickly. Like the year itself, the time frame for such a bill draws short.

Why time is of the essence for both MI and NY

Like any other bill in New York, a revenue bill would have to work within the time constraints codified into state law. State law gives Cuomo 10 days, not including Sundays, to review legislation before making a decision on it. Additionally, the law requires a three-day moratorium to pass before either chamber can vote on a bill unless Cuomo issues a “message of necessity” to suspend that rule.

New York Sports Newspaper

So far, neither the Assembly nor the Senate have voted on a revenue bill. To give Cuomo the requisite 10 days, the legislature would have to send a bill to him by this Saturday, the 20th.

New York Sports Betting Update 2020

Essentially, unless Cuomo grants that message of necessity to both chambers and both chambers authorize a concurrent piece of legislation within the next 24 hours, online sports betting legalization won’t happen in New York this year. That doesn’t mean early next year is off the table, though.

New York Sports Betting Bill 2020 Update

In Michigan, it’s more a matter of maximizing the value of a rollout. January will boast not only the NFL playoffs and College Football Playoff but NBA, NHL, and men’s college basketball action as well.

Ny State Sports Betting

The next few days could decide how soon and whether online sports betting is available in MI and NY. Bettors and industry players alike are watching the activity in both states with cautious optimism.