Stakeholders and Legislators in New York Urge for the Establishment of Legal Online Sports Betting
In a logical shift, New York lawmakers and stakeholders are showing increasing flexibility as they strive to legalize online sports betting within the state. This flexibility became evident during a recent discussion panel at the Betting on Sports America digital conference. Jeff Gural, a significant player in New York's casino scene, hinted at potential concessions when he stated, "Casinos would go along with whatever the state wants to do. This is an emergency."
In contrast to their initial position, Gural, a managing partner at New Jersey's Meadowlands Racetrack and owner of New York's Tioga Downs, now considers allowing two "skins," or online sportsbook brands, for each of their casinos[2]. Similarly flexible is Gary Pretlow, a representative in the New York state Assembly, who stated that a sports betting bill could be included in the House budget before the end of the year[1].
At present, sports wagering is legal in New York only at physical sportsbook locations at four casinos[3]. The first of these opened in June 2019, following the reversal of a federal ban on sports betting in May 2018[3]. However, progress on expanding sports wagering to mobile platforms has been slow, partly due to the reluctance of New York Governor Andrew Cuomo[3]. Nevertheless, the ongoing economic impact from the COVID-19 crisis is leading to a softening of positions, and the state may increasingly acknowledge the tax revenue that could be generated from mobile sports wagering[1].
Senator Joe Addabbo emphasized the necessity of creating a "veto-proof" bill[1], indicating that the legislators are determined to push the bill through despite potential obstacles. While the implementation of the law is not expected to begin before April 2021, missing out on revenue from major sporting events like the Super Bowl and March Madness remains a concern[5].
Notably, the number of mobile skins has emerged as a negotiable aspect in the legalization process[6]. While casino owners initially favored a single skin, the flexibility shown by Gural and the willingness of Pretlow to push for at least two skins indicate that the issue may no longer be a major sticking point[6]. The final decision on the number of skins remains to be seen, with the possibility of seven or 14 skins being proposed[6].
It is worth noting that the number of mobile skins varies across jurisdictions where sports betting is legal[7]. Tennessee allows an unlimited number of mobile operators, while states like Pennsylvania, Colorado, and Virginia have caps[7]. In Colorado, the number of operators is capped at 33, but in Virginia, the current cap is 14, and the state lottery received 25 sports betting operator applications[7].
As New York moves closer to legalizing online sports betting, it is essential to monitor the negotiations and their potential impact on the sports betting landscape in the Empire State and beyond.
References:- [1] https://www.statesman.com/sports/20201201/new-york-lets-create-veto-proof-sports-betting-legislation- [2] https://www.si.com/casino/betting-on-america-conference-operator-update-jeff-gural- [3] https://www.usatoday.com/story/sports/nj-sports/2019/06/20/sports-betting-when- Will-new-york-launch-mobile-betting/1519807001/- [4] https://legiscan.com/NY/text/A04009/id/1676817- [5] https://www.usatoday.com/story/sports/nj-sports/2020/12/02/super-bowl-march-madness- Delay-legislations-passage- Could-Slip-New-Yorks-Sports-Betting-Revenue/3761831001/- [6] https://www.euromoney.com/article/americas/new-york/2020/12/number-of-mobile-skins-up-for-debate- [7] https://www.usgamingreports.com/2020/12/01/colorado-and-virginia-potentially-instant-online-sports-market-leaders/
- Jeff Gural, a proponent of casino-and-gambling industries, suggested casinos in New York could accommodate two online sportsbook brands, or 'skins', per casino, showcasing the growing flexibility in the sports betting landscape.
- Initially, casino owners preferred a single 'skin' for each casino, but Gural's leniency and Gary Pretlow's determination to push for at least two skins indicates that this may no longer be a significant obstacle in the legalization process.
- As negotiations for legalizing online sports betting progress in New York, it's important to consider the potential impact on casino-games, sports betting, and the overall sports betting landscape not just in the Empire State, but across other jurisdictions.
- While some states, like Tennessee, allow an unlimited number of mobile operators for sports betting, others like Pennsylvania, Colorado, and Virginia have capped the number of operators, with Colorado having 33 and Virginia currently capped at 14.
- Stakeholders in New York are aware of the tax revenue potential of mobile sports wagering and are keen on legalizing it, despite ongoing reluctance demonstrated by Governor Andrew Cuomo.
- Missing out on potential revenue during major sporting events, like the Super Bowl and March Madness, remains a concern as the implementation of the new sports betting law is not expected to begin before April 2021.
