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Mobile sports betting "will pass" in New York according to Governor

Online sports gambling
Posted at 1:13 PM, Apr 07, 2021
and last updated 2021-04-07 18:07:17-04

ALBANY, N.Y. (WKBW) — During the New York State 2021-2022 budget announcement, Governor Andrew Cuomo announced that the state's mobile sports betting plan "will pass" bringing in an estimated revenue of $500 million each year. Currently, the only way to place a legal bet within New York State is in-person at the four Upstate commercial gaming facilities and Native American gaming facilities.

According to the Governor, the program will provide $5 million to youth sports and $6 million to combat gambling addiction. The left over revenue will go to education.

The plan for New York's mobile sports betting is vastly different than many others. Wagering would be controlled through the state, similar to the lottery. According to the budget proposal, "The Gaming Commission will select a platform provider(s) through a competitive bidding process. The platform provider(s) must demonstrate that the necessary safeguards against addictions and abuses are in place. All revenues shall be directed to the State Lottery Fund for education aid." Only the four "Upstate" casinos would be allowed to host the servers for the platforms.

The state says that nearly 20 percent of New Jersey's online sports wagering handle comes from New York residents, costing the State millions of dollars in lost tax revenue.

According to a report from Legal Sports Report, platform providers (DraftKings, FanDuel, etc) would have to split at least 50% of the profits with the state and only between two and four will be allowed to operate. The State's Casinos will host the servers, with four casinos already having deals with sports books that operate mobile gaming sites.

  • DraftKings, partnered with Del Lago (considered an Upstate casino)
  • FanDuel, partnered with Tioga Downs (considered an Upstate casino)
  • Bet365, partnered with Empire Resorts
  • BetRivers, which is affiliated with Rush Street‘s Rivers Casino (considered an Upstate casino)

The bill would take effect immediately ones passed, however, it is unknown how long the bidding process will take.

This plan differs greatly from that of neighboring states.

PENNSYLVANIA:
Pennsylvania has no cap on how many online betting operators are allowed. Currently, there are 16 in operation. Similar to New York, these sites have established partnerships with Pennsylvania’s land-based casinos. Each site is required to be licensed and approved by the Pennsylvania Gaming Control Board and are accountable to the rules and regulations set forth by the regulator. Pennsylvania taxes winnings

NEW JERSEY:
In New Jersey, there is a 13% annual tax on the Sport Books' winnings. Each online wagering site must be "backed" by a brick and mortar location. Each location can sponsor up to three online sports books. Currently, there are 21 different mobile gambling sites in operation in the state. New Jersey has the profits go through the casinos, not the state.