Will New York Be The First Big Online Sports Betting State?

New York sports betting

There is cautious optimism that online sports betting in New York will get the go-ahead by the end of the year. That might require a compromise, but even if New York is limited to single skin online sportsbooks, the New York market is full of potential.

New York is the fourth most populous state in the country and one of the most well-off.

The State of New York continues to miss out on additional revenue due to failing to legalize mobile sports betting. For now, only sports betting in physical locations (located upstate) is allowed, and New Yorkers need to make do with online gambling from neighboring states New Jersey or Pennsylvania.

Growing Support for S17D

Governor Andrew Cuomo has been vocally opposed to the legalization of online sports betting in the past, making the case that it violates the state’s constitution, which requires a constitutional amendment to expand gambling.

Others believe New York can add mobile sports betting without a constitutional amendment. A mobile sports betting bill, S17D, is still being debated and is gaining traction.

Introduced by Sen. Joseph Addabbo, the bill – which relates to the regulation of sports betting and mobile sports wagering – seeks to “amend the racing, pari-mutuel wagering, and breeding law, in relation to regulation of sports betting.”

Sen. Addabbo has been quoted in The Ticker, saying that now, more than ever, it is necessary to move forward with online sports betting to help New York’s pandemic-battered economy.

New York’s retail sports betting industry has been anemic, while New Jersey and Pennsylvania are among the best sports betting markets worldwide, thanks in part to New Yorkers crossing the border to place online sports wagers.  

Sports Betting that Adheres to NY Constitution

Despite constitutionality concerns, Addabbo has promised to adhere to New York’s constitution with SD17D.

“At first, the question was of the constitutionality of mobile sports betting in our state,” Addabbo said. “But I think we’ve gone beyond the constitutionality issue because once you put the server that actually accepts the wager on the land of the licensed casino, you satisfy our constitutionality issue as well as the intent of the constitution.”

Plan, Pass, Prepare

Earlier this year, Assemblyman Gary Pretlow joined forces with Addabbo in his efforts to get SD17D into the final budget, but like previous attempts, these efforts fell short.

Addabbo is renewing his efforts to see mobile sports betting available by the end of the year and proposed a “Plan, Pass, Prepare” strategy. His goal is to see the governor sign the bill into law by December 31st, 2020.

Is Limiting New York Sports Betting Skins the Short-Term Compromise?

One of the questions about an online sports betting industry’s makeup is just how many “skins” the state will allow. More cautious lawmakers want to start with a single skin, meaning that each existing casino (four upstate casinos and three tribal casinos) can only operate one online sportsbook brand each.

Addabbo and his proponents understand that more skins mean more options for bettors and more revenue for the state. However, the Senator wants to see SD17D passed before the end of the year, even if it means agreeing to the single skin proposal.

There is always the possibility the bill can be tweaked to improve the legislation and possibly add more sportsbook skins later.

Big Names Even in Single Skin Industry

Even if legislators agree on initially passing a law allowing a single sports betting skin, the good news is that some of the biggest names in the industry will have a presence in New York’s mobile sports betting industry.

NY Mobile Sports Betting Before 2021: Yes or No?

While it likely won’t happen before the November election, there are high hopes that Addabbo’s “Push, Pass, Prepare” strategy will have the governor signing the bill into law by the end of the year and sports betting up and running in short order.

The global brokerage and investment bank Oppenheimer is reasonably optimistic that online sports betting will be a reality in New York in time for the 2021 March Madness tournament.

Jed Kelly, a senior analyst for Oppenheimer, has this to say: “The state has legal sports betting at retail locations and offers the quickest path of the big four (CA/FL/NY/TX). The 2020 legislative session is being extended and there are encouraging signs that NY could legalize mobile wagering based on a state-commissioned revenue study expected to be released relatively soon. Additionally, NJ’s success (likely report’s another record month this week) and emerging budget deficits could be a catalyst for Cuomo to legalize.”

Kelly’s statement came just days before New Jersey reported that sports gambling in September set a new national record. With sports back in full swing, NJ sportsbooks brought in $748 million, breaking the previous record of $668 million, set in August.

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