The New York Gaming Commission will issue a request for proposals before July 1 on online sports betting. This means that sports betting will begin a bidding war to obtain at least one of four New York sports betting licenses. This is when the New York mobile sports betting market is beginning to take shape. The long-awaited moment for New York sports bettors has finally arrived.

Propositions, propositions

As mobile sports betting operators begin to propose plans to maximize New York’s sports betting revenue, it is worth remembering how New York came here. Now is a good time to see how the previous speculation has succeeded and what we expect from the New York mobile sports betting market.

In the numbers

Mobile sports betting is becoming a lucrative business in New York. According to Forbes, sports betting in New York can generate nearly $500 in taxes each year when the market matures. The forecast can be extended to 2025, but it allows bettors to understand how much New York State hopes to make for itself. It will also recapture New York’s current sports betting revenue that it lost to New Jersey. Mobile sports betting in New Jersey has been around for a few years, and New Yorkers take the ferry just to make sports betting on their devices. In addition to these reasons, it is expected that in the next 5 to 10 years. At least 90% of sports betting in the United States will be conducted online.

NY will have no chance to enter the highly competitive sports betting market. Retail sports betting is not for all New Yorkers. This is why many of them are willing to squeeze on Starbucks across the river for online betting.

Legislation

But money aside, legalizing mobile sports betting will also make it easier to track down and help problem gamblers. However, this will only be the case if NY and its mobile sports betting companies work hard to track them. Sports betting in the UK requires bettors to prove that they are capable of making larger bets if their betting behavior changes. If the New York Gaming Commission establishes similar requirements, they may have a greater impact on problem gambling. 1% of the $6 million in gaming revenue per year is a start. But unless the money is translated into concrete actions, it means nothing.

The agreement

Sports analysts may be disappointed in one aspect. In September 2020, we quoted Senator Addabbo as saying that he has a way to increase New York’s budget by $1 billion through prepaid licensing fees. As we reported at the time, almost all the money came from two online casino licenses. There are already four casinos in New York. But three more are planned to be developed in 2023. The agreement to postpone that year to 2021 is almost part of a large gaming revenue plan.

But the agreement fell through at the last minute, so New York’s budget will not increase by $1 billion. Instead, New York will have to wait for its sports betting industry to mature before it can earn hundreds of millions of dollars a year. However, New York lawmakers may also push to move the casino development year to 2022. It is politically advantageous to be able to obtain credit to increase the state budget by $1.5 billion.

Examples from abroad

Although the sports betting industry can bring profits to NY, it faces new pressures. Canada is about to legalize individual sports betting, and Ontario is the first to introduce sports betting. New Jersey and Pennsylvania are still the powerhouses of sports betting. New York will be competitive, but it must strive to stand out in the strong areas of the sports betting industry. However, New York has taken a step in the right direction. In the original bill, Senator Adabo only bought one skin for each operator. This seems to be a safe way to legalize sports betting. Although Governor Cuomo has developed in sports betting, he still insists on a single operator model.

Selecting operators

However, Addabbo and Assemblyman Gary Pretlow still want two skins for each operator. Both of them proposed a bill to increase the number of skins from one to two in their conference hall. In theory, this would double the number of operators allowed to compete in New York. But the New York Gaming Commission must first select the first-round operator. There will be at least four, which basically guarantees at least DraftKings and FanDuel’s foothold in the new New NY betting market.

Although the Gaming Commission can authorize unlimited sports betting operators, it will seek the most profitable options for the country. But New York actually has to choose to license so many sports betting. If their proposal is not good enough, any sports betting that is not one of the top four will be returned to New York. The New York selection process will pose unique challenges for smaller sports betting operators. But this will further promote Governor Cuomo’s goal of maximizing state taxes.

Mobile betting went a long way

It took a long time for NY to accept mobile sports betting, and this waiting has consequences. Governor Cuomo’s reservations about conflicts with the state constitution made New York’s sports betting spend precious time. New York will not take back New Jersey bettors’ money overnight. Its neighbor, New Jersey, still has a huge sports betting market for bettors to choose from. New York’s initial options will be limited. And may not be attractive enough for bettors with better deals on the Hudson River.

However, inviting sports betting operators to submit proposals is an exciting step for New York bettors. This means that bettors are closer to understanding which sports betting may be listed first in New York. Although the launch is not perfect, sports betting in New York offers a lot of hope. It is expected to develop into a booming industry that will bring considerable revenue to the state and meet the market demand that New Jersey has been happy to satisfy for many years. Although it is too early, there is still much to look forward to for New York bettors.