New York Set to Approve New Online Sports Betting Proposal

Sports Betting

According to available information, lawmakers in the state of New York are likely to greenlight a new piece of legislation that would allow licensed online sports betting sites to launch their respective operations. The sources say they could be up and running as early as September.

New York Governor Andrew Cuomo was the first to propose this model after the protests of operators. The model has already been included in the state’s budget for 2022, worth $200 billion.

The limited operator plan has called for the New York Lottery to issue main licenses to a couple of online sports betting operators. These operators would be allowed to subcontract up to four mobile-friendly skins.

More Money for the State

Retail sports betting has been made legal in the Empire State in June 2019. Since then, the activity has generated an aggregate handle of a few million dollars. With a successful launch of online sports betting, this amount could skyrocket, as estimates say that around 90% of all wagering on sports in New York would be conducted remotely. Translated into hard currency, that means the state could reap billions of dollars from sports betting on a monthly basis.

Many have criticized the plan, saying it would favor operators that are already doing business in the state. Retail sportsbooks are located in four upstate casinos, incorporating FanDuel, DraftKings, Bet365, and BetRivers. When it comes to second-skin operators, Penn National’s Barstool is interested in offering its services in New York, and so is PointsBet USA, a subsidiary of PointsBet Holdings, the renowned Australian operator.

If approved, the plan would also ban MGM Resorts from getting an online sports betting license through its Aqueduct Racetrack and Empire City Casino. In-stadium kiosks are not included in Cuomo’s proposal, which means they wouldn’t be able to appear at Madison Square Garden and Yankee Stadium.

Ready for the New NFL Season

The proposal is set to be launched in time from the new season of the National Football League (NFL), which kicks off on September 9, 2021. It would also enable the state’s federally recognized tribes to join the race. Oneida Indian Nation, Mohawk Community of Akwesasne, and Seneca Nation of Indians could benefit from online sports betting, despite having deals with other operators.

According to State Senator Joseph Addabbo, the approval of Cuomo’s proposal would significantly impact the New York Gaming Commission. The state’s regulatory body would be forced to introduce a new set of measures to regulate the new legal online sports betting market, which would be the largest one in the US, at least by population. The legislator also revealed the new rules could be amended by the end of the year if they lacked the desired effect.

Speaking about the new proposal, Addabbo said it would enable New Yorkers who had been spending their money in Pennsylvania and New Jersey to wager on sports in their home state. He pointed out it would also have a significant impact on the state’s financial situation.

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