The state of New York potentially represents one of the most lucrative betting markets in the US, and with mobile betting now launched in the region, both the industry and authorities are understandably thrilled.
Going live on Saturday 8 January, four operators are now fully set up to offer their online sports wagering services in the Empire State – Caesars Sportsbook, DraftKings, FanDuel, and Rush Street Interactive (RSI).
Furthermore, five more operators – BetMGM, Bally’s, Wynn, Resorts World, and PointsBet – are also set to receive approval from the New York State Gambling Commision (NYSGC).
Discussing the development on the Legal Sports Report (LSR), co-hosts Adam Candee, Dustin Gouker and Matt Brown observed that this news has been in the pipeline for around seven years.
The establishment of the legalised New York sports betting market has faced numerous hurdles over the past 12 months, most notably regarding regulatory oversight and taxation of the industry.
Former state governor Andrew Cuomo had set a target of $500 million annual sports betting turnover, meaning revenue share through taxation in the state could equate to a 50/50 split between operators and state administrators, and it could potentially be as high as 60%.
However, now that the market has launched, questions have now risen in other states about the impact this could have on other regional wagering sectors.
Observing that in New Jersey alone up to a quarter of customers who bet on sports online are actually from the neighbouring state of New York, Gouker shared his view that the launch of the Empire State’s wagering space could have an impact on other Northeastern states gambling revenues.
“You’re going to possibly see New Jersey drop a little because those people no longer have to go to New Jersey – that should be a boom to New York because off the bat these people are betting in New York, and that’s taxable revenue,” he noted.
“There’s all sorts of things at play here. FanDuel is in Connecticut as well, and there’s a lot of people in Connecticut who bet in New York.”