According to a white paper authored by PlayNY, a leading outlet for news and research of the fledgling New York gaming industry, the state has lost millions in revenue since retail betting began in July 2019, but the legislative drive to add online sports betting could make the state the largest US sports betting market if properly organised.
The State of New York Sports Betting: An Examination of the Forces Shaping the Industry, written by PlayNY analysts Eric Ramsey, Dustin Gouker, and Matthew Kredell, delves into the complexities of the New York market.
The way in which New York has underperformed with only in-person sports wagering, as well as the proposed legalisation campaigns in the state from the legislature and governor’s office, are among the issues discussed.
The report further discusses the regulatory problems at hand as New York considers legalisation, as well as the sales and overall betting operation opportunities.
Finally, it examines who the big players in a regulated online sports betting industry are going to be, as well as what other jurisdictions have achieved with sports betting legalisation.
“New York is a complex market, but one that the entire US gaming industry is watching intently,” said Ramsey. “There are so many factors at play in the charge to regulate online sports betting, including Governor Andrew Cuomo’s political fate.”
The controversy about whether to regulate online sports betting and how to arrange the rules surrounding it is still going on, with a settlement possible this spring, at least for this year.
Dividing views on organisation
But a lot will happen between now and then. For starters, in the controversy over how to organise online gaming, two main camps have emerged. One, a campaign led by Assembly member J Gary Pretlow and Senator Joseph Addabbo Jr. to promote a free market that will allow numerous private operators to operate in the state.
The other is a state monopoly model in which New York collects the lion’s share of sales by partnering with a single sportsbook operator, which Governor Cuomo has lobbied for.
According to the writers of the PlayNY white paper, in the first four years after introducing online sports betting, an open market could generate $37 billion in bets, more than $2.5 billion in provider income, and more than $300 million in tax revenue. A closed market could generate $7.5 billion in wagers, $750 million in sales, and $375 million in state revenue.
“The bottom line is we believe an open market will offer broader benefits for the state and its residents,” said Gouker. “But a closed market should produce more revenue for the state, and that is tempting for policymakers.”