The Legal Sports Report podcast delved into the biggest story of the week in the US gambling industry: the legislation on sports betting regulation launched in the state of New York.
What is it?
Discussing the landmark agreement reached in New York, the podcast detailed the route to the introduction of legislation, the specifics of the actual bills and provided a breakdown of the numbers involved. Gambling developments in the states of Illinois and Wyoming were also featured later on in the episode.
Who is it?
Adam Candee, Co-Host at Legal Sports Report and Senior Reporter at Catena Media
Dustin Gouker, Head of Content for PlayUSA
What is being said?
Regarding the legislation, Gouker commented: “It was very sketchy as to whether this would actually make the budget. Some people were calling it a coin flip, some people said it’s definitely in, but early this week it started looking very positive that something would be in the New York State Budget related to online sports betting.
“In the last 24 hours, we’ve actually seen legislation come into effect to enable it as part of the larger New York budget. Later on in the life cycle, that’s a couple of years down the road, there will be $500 million in revenue for the state fiscal year.”
He continued: “This has always been the Commo’s (New York Governor Andrew Cuomo) plan, more or less. There’s a little bit of a monopoly – mostly a monopoly – it will be state run, asking for a revenue share of between 50% and 55% from operators.
“We don’t know exactly who those operators are going to be, how they get in or how it all works – it’s very confusing.”
Agreeing that the terminology of the legislation was ‘confusing’ to many, Candee asked Gouker what he made of the specifics, and what other people may have been saying.
Gauker subsequently confirmed that certain caveats of the legislation – particularly regarding a clause allowing up to two platform providers – had been interpreted very differently by various writers and operators.
He commented: “I read it as you have two tech platforms, there are ‘skins’ that live on those tech platforms, and that’s what it is.
“Some people are reading this as basically just meaning two licensees andthey can sublicense it out to other people. I don’t think any of us know and I’m not sure even the lawmakers or the people who wrote this law know, and it’s probably going to get flushed out at a later date, so we’re all going to find out.”
Why should I watch it?
To gain an understanding of developments in New York, as the state moves towards embracing a regulated legal gambling market, including online verticals.
Where can I see more?