Today, the New York Gaming Commission released a report containing findings about the Empire State’s gambling industry. Spectrum Gaming Group to explore “economic, demographic and commercial factors impacting the New York state-regulated gaming industry.”
Report Highlights
Spectrum Gaming Group’s report features a number of discoveries that will undoubtedly impact New York sports betting and online gaming progress. As it stands, the state is torn between two models. Governor Andrew Cuomo supports a state-run lottery-based sports betting model while members of the state’s legislature support a casino-based model.
Some consider the push for online sports betting necessary to offset Covid-19 related revenue losses in New York. Spectrum’s report predicts that the gaming industry will return to pre-pandemic levels in 2023. Should online sports betting become legal between now and 2023, that time-frame could become much shorter, representing a quicker recovery for NY gaming revenue.
Mobile Sports Betting Impact
“With respect to mobile sports betting,” a press release detailing highlights of the report says, “Spectrum indicated that stabilization of revenue will occur three to five years after commencement. Their analysis concluded that at a 10 percent tax rate, retail and mobile sports wagering would generate between $72 million to $104 million in tax revenue to the State.”
However, the estimate “assumes that the tribal sports wagering operators will not be able to generate meaningful market share.” Depending on the sports betting model New York moves forward with, this assumption could prove to be way off base. If Sen. Addabbo and Assemblyman Gary Ptelow’s casino-focused bill passes in New York, tribal operators would be able to partner with big-name sports betting companies and nab a significant share of the market.
New York Land-Based Gaming
Spectrum’s report also seems to favor new land-based gaming options for players downstate, particularly in New York City.
“Downstate counties show the greatest potential for growth in Gross Gaming Revenue, ranging from $970 million to $4.49 billion for New York City, and $606 million to $1.13 billion for Long Island. The potential of the New York City market could be captured by the addition of new gaming facilities,” reads the report.
The report also says that the Covid-19 pandemic could result in a necessary delay with regard to NY land-based gaming expansion. The state could opt for a bidding process to determine which operators are best suited to build and operate casinos in the downstate region, according to the report.
Read The Full Report
For more, you can access the 30-page executive summary of Spectrum’s report or read the full published study (beware, it’s more than 350 pages long).
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