Mobile Sports Betting Could Bring $900 Million To New York

New York online sports betting could end up as a billion-dollar industry if N.Y. Gov. Andrew Cuomo approves a mobile sports betting bill in New York.

NY Sports Day projects a potential $900 million in annual revenue for online sports betting if the current language of NY State Senate Bill 17D remains intact. The $900-million figure would result in the state bringing in $108 million in tax revenue.

Senate Bill 17D would approve the launch of up to seven mobile sports betting skins in New York. Each of the state’s four commercial and three tribal casinos could operate one online sports betting platform.

Mobile sports betting revenue would be taxed at 12%, and each operator would pay a one-time licensing fee of $12 million to enter the market. Those licensing fees amount to another potential $84 million for the State of New York.

The bill passed through the New York State Senate by a landslide 57-5 vote. Governor Cuomo’s signature on the bill would put the final piece in place for legal online sports betting to launch in the Empire State.

Retail sports betting launched in New York in July 2019, but the addition of mobile sportsbooks could push New York into a status as the biggest online sports betting market in the US.

Flourishing New Jersey Market Could Predict New York Success

New Jersey’s success in the online sports betting space reveals a look at what could be if New York legalizes mobile sports betting.

New Jersey launched online sports betting in August 2018. The state realized $269 million in mobile sports betting revenue from August 2019-July 2020. August 2020 saw New Jersey’s online sportsbooks bring in a record-setting $668 million in betting handle.

New Jersey’s 9-million population is less than half of New York’s 19.4 million. The state currently benefits from New York bettors contributing a healthy amount to New Jersey’s online sports betting revenue totals.

NY Sports Day looked at the thriving New Jersey industry, as well as other successful online sports betting markets to make the $900-million estimate for New York. Revenue figures from mature US and international mobile sports betting markets were considered in the NY Sports Day projections.

Adjusting New Jersey’s 12-month figure of $269 million for New York’s population brings that number up to $586 million in potential annual revenue for New York. Factoring in New York City’s status as one of the top tourist destinations in the world should take that estimate even higher.

Another major factor that could boost New York’s online revenue figures is the retention of in-state wagers. Gaming research firm Eilers & Krejcik released a study in February 2020 that estimated New York bettors wagered $837 million in New Jersey in 2019.

If New York goes ahead with legal online sports betting, placing a legal wager would no longer require a trip to New Jersey.

More Skins Could Equal More Money

The proposed sports betting laws outlined by Senate Bill 17D allows for one skin per licensed operator in New York. With seven retail casinos in the state, the maximum number of online sports betting skins would be capped at seven.

Proponents of online sports betting like New York State Sen. Joseph Addabbo Jr. want to see the state eventually expand the bill to allow for multiple skins per operator. NY Sports Day estimates that if the law allowed two skins per operator, annual revenue could go as high as $1.3 billion.

That revenue figure would result in New York collecting $156 million in taxes, and a total of $168 million in licensing fees from 14 operators paying the $12-million one-time fee.

“That’s gonna be an issue because obviously to maximize the revenue there would be additional skins,” said Addabbo in a recent interview with NY Sports Day’s Chris Gerlacher. “And you look at other states who have additional skins and right now we do not.”

New Jersey, Colorado, Iowa, and Indiana all allow operators to license up to three different online sports betting skins. New Jersey offers the largest selection of online sports betting brands of any US state, with 19 different sportsbooks.

Is A 2021 Launch Possible For Online Sports Betting In New York?

The road to mobile sports betting legalization has hit its share of hurdles in the Empire State. Lawmakers had the option of trying to pass a constitutional amendment bill that would allow retail casinos to offer online sports betting.

That amendment, if it passed, would have brought the issue to a public vote in November 2021. The deadline for introducing such a bill passed in August, however.

There is another way mobile sports betting could get the green light, however. New York legislators are expected to commence a special session to discuss the state budget before the end of 2020.

Online sports betting could be included in a revenue enhancement bill as part of that special session. If passed, New York bettors could be placing legal wagers online sometime in 2021.

About the Author

Geoff Fisk

Geoff Fisk is a San Diego-based freelance writer, specializing in the poker and gambling industries. He’s written for numerous platforms and has traveled the globe as a live poker tournament reporter. Geoff’s interests include the legal online poker industry in the U.S. and abroad.

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