New York governor to embrace mobile betting
Industry hails huge step forward with Governor Cuomo expected to greenlight mobile wagering in upcoming State of the State address
Legal mobile sports betting appears to be on the horizon for New York as Governor Andrew Cuomo has said he will include the topic in his upcoming State of the State address.
Cuomo previously rejected the industry’s calls for statewide mobile betting, insisting that a constitutional amendment must be made before considering the measure.
But the governor has been forced to consider the worthy tax contribution of mobile betting as the Empire State’s economy recovers from being hit hard by Covid-19 in 2020.
Speaking to NY Daily News, Cuomo said New York has the potential to be the largest sports wagering market in the US.
“At a time when New York faces a historic budget deficit due to the Covid-19 pandemic, the current online sports wagering structure incentivizes a large segment of New York residents to travel out of state to make online sports wagers or continue to patronize black markets,” he added.
The sector has hailed the news as a major turning point for betting in the state after hitting a number of roadblocks in 2020.
Lobbyist and state advocacy director for gaming trade group iDEA Growth John A Pappas told EGR NA: “The governor’s endorsement was really the only thing missing from the previous efforts to legalize mobile sports betting.
“This is a major development and it completely changes the dynamic in a positive direction,” Pappas added.
“The Governor’s endorsement was really the only thing missing from the previous efforts to legalize mobile sports betting.
“However, like all policy shifts the devil is in the details, tax revenue is clearly the motivating factor, so it is critical that the legislature and the Governor embrace a bill that maximizes competition so they don’t leave any money on the table, a monopoly would greatly undermine the tax revenue potential for New York.”
Gaming lawyer Dan Wallach agrees the key component for mobile betting legislation will be ensuring a ‘multi-skin’ approach is taken by legislators.
“The most recent bills from the last two years provided for only one skin per operator but that number may increase in a new bill,” Wallach told EGR NA.
“The legacy play here for Senator (Joseph) Addabbo and Assemblyman (Gary) Pretlow is to push for a ‘multi-skin’ approach, which would maximize the economic potential for sports betting and increase the likelihood of New York overtaking New Jersey and Nevada and becoming the number one market for sports wagering in the United States,” Wallach added.
Senator Addabbo and state Assemblyman Pretlow have lobbied in favor for mobile wagering within the Senate and House of Representatives.
Senator Addabbo welcomed Cuomo’s move in a statement that said: “By legalizing mobile sports betting, New York will be able to reap the benefits of the economic gains it will create and help the state rebuild after the Covid-19 pandemic, in addition to increasing educational funding, addressing illegal activity in the state and assisting those with gaming addictions.”
Gambling stock prices rose significantly on the news of Cuomo’s upcoming speech with DraftKings up 7.5%, Penn National Gaming up 7.2% and Rush Street Interactive’s newly launched shares up 7.6%.
DraftKings, Rush Street Interactive, bet365, and FanDuel already have access to betting in the state via retail licenses and market-access deals, and they could be among the only brands to operate mobile betting if the state adopts a single skin approach.