We have arrived. The most wagered-on event in sports betting. The Super Bowl.

The Buffalo Bills failed to reach the big game, but Super Bowl LV will no doubt attract plenty of attention in New York. How could it not? Tom Brady and the Tampa Bay Buccaneers, the first team to play for the Lombardi Trophy in its home stadium, against Patrick Mahomes and the Kansas City Chiefs.

Currently, there is no New York online sports betting option, and that has kept the handle and revenue numbers down as states throughout the US have seen tremendous growth. Now that NY is facing a budget deficit, there is more pressure on the state to offer online sports betting. New York Sports Betting Market. When NY goes live with mobile sports betting, the state figures to be one of the largest in the country. It’s unclear how much of the current New Jersey handle.

While Super Bowl betting will spike in jurisdictions that have legalized wagering, New York sports betting will miss out on hundreds of thousands of dollars in tax revenue because it lacks regulated online sports betting. Super Bowl betting in NY will only take place in retail sportsbooks.

Jan 14, 2021 Governor Andrew Cuomo continues to tweak his plans for online sports betting in NY, but there is still work to be done. New York Governor Andrew Cuomo’s four State of the State addresses came. Cuomo plans to run online sports betting through the New York Lottery as opposed to letting casinos and sportsbooks run the show. Oregon uses a similar model and there is only one place to make.

Even a conservative estimate of the impact of online sportsbooks in New York shows how much the state could have benefited from offering legal options to wager online.

What could have been if New York had legal online sports betting

There’s no doubt about the demand for online sports betting in NY. A recent estimate puts the value of mobile betting handle at $20 billion annually in the Empire State. Earlier figures suggested that New Yorkers crossed the state line to make legal wagers in New Jersey to the tune of $837 million in 2019.

A state-commissioned study indicated that mobile wagering in New York could lead to $1.1 billion in annual gross gaming revenue in three to five years. The study, done by Spectrum Gaming Group, also noted that the state could pocket more than $100 million each year in state revenue.

That $837 million figure from 2019 doesn’t count the number of New Yorkers crossing another border, into Pennsylvania, to wager online. This year, NY residents will no doubt contribute toward Super Bowl handle estimates of $75 million in New Jersey and $55 million in Pennsylvania.

The Super Bowl is the single biggest betting day of the year for US sportsbooks. So what would New Yorkers wager online this year if they had the option to do so legally? It’s important to remember three things in forming a guess here:

• Not all online bettors instantly gravitate to legal books when they become available.
• It’s possible that legal betting apps in New York could pull traffic from residents of neighboring Connecticut, Massachusetts, and Vermont.
• In this hypothetical situation, online wagering would be legal statewide, so more than just the population of New York City counts.

With those things in mind, assume handle in New York (in its first year) could compete with that of nearby New Jersey. The state is populous, has a robust sports presence, and the population is familiar with the concept of legal gambling. Those things lend well toward a strong performance.

How much tax revenue could Super Bowl online sports betting produce?

Let’s take the hypothetical scenario of NY legalizing online sports betting in 2020. Had the state done so, a conservative figure for Super Bowl handle in New York this year would be $70 million. It’s likely that the event could be worth more when the market hits maturity, as Spectrum projected. But in this example, bettors would be placing legal Super Bowl bets online in New York for the first time.

Another thing that’s necessary to quantify is a hypothetical hold. Sportsbooks don’t always clean up on Super Bowl wagers. As a matter of fact, legal books in both New Jersey and Pennsylvania have yet to record a Super Bowl Sunday in which they won.

For the sake of this example, assume the books collectively held 5%. Furthermore, assume the state lands on a tax rate of 10% for aggregate revenue and doesn’t allow operators to comp their promotional credits.

Those operators would hold an estimated $3.5 million (5% of $70 million). Taxed at that rate, that would mean $350,000 in revenue for the state. That’s not enough to solve the state’s current budget deficit. However, it’s quite a windfall from just one game.

Instead, this year, all that handle will go to legal books in New Jersey and Pennsylvania. Or even to offshore websites. New York could be close to correcting that issue, on some level. To what degree that happens depends on whether New York online betting is a state-run monopoly like Gov. Andrew Cuomo wants or a competitive market.

Will Cuomo’s plan handcuff Super Bowl online betting potential?

If Cuomo gets his way, Super Bowl handle might be a shadow of its potential. If the state enacts a broader framework, however, there’s cause for optimism. A single-operator system can not only lead to short odds but also a lack of promotional offers to draw bettors to the regulated market.

As a result, a lot of New York bettors could stick with their offshore channels or keep crossing state lines because they can get a better deal. Less handle means fewer tax dollars for the Empire State. On the other hand, a more open system could help out a lot.

The latest proposal out of the legislature in Albany would tether online wagering to the state’s commercial and tribal casinos. Such a proposal would give each property and tribe an extra skin to delve out. That could mean as many as 14 online sportsbook options in the state.

It would also bring some of the nation’s strongest brands into the market. BetRivers, DraftKings, FanDuel and William Hill have all already negotiated access with casinos. The extra skins would also give other books like BetMGM and PointsBet a path into New York.

So far, legislators seem determined to push through their version instead of Cuomo’s. Assemblyman Gary Pretlow, who chairs the Racing, Gaming, and Wagering Committee, called Cuomo’s plan “nonsense.” There’s always a risk that Cuomo could veto any bill that strays too far from his preferred route, however, and there may not be enough votes in the legislature to override that.

While leaders in Albany work out the details, the state treasury sits bereft of the potential hundreds of thousands of dollars that online sports betting on this year’s Super Bowl could have wrought. If a stalemate develops, the same may go for 2022 and beyond.

• New York Governor Andrew Cuomo wants mobile sports betting to be run through the state, just like the lottery system.
• Cuomo believes that mobile sports betting could bring New York $500 million in tax revenue.
• The New York Senate Committee on Racing, Gaming, and Wagering passed bill S1183 on Tuesday.

NEW YORK – New York Governor Andrew Cuomo has doubled down on his assertion that the mobile sports betting market when legalized should be run by the state. This comes on the heels of a budget shortfall in New York due to the COVID-19 pandemic.

Cuomo presented the Fiscal Year 2022 budget for New York and began talking about the potential of sports betting in New York at the 22-minute mark in his address.

Presenting my Fiscal Year 2022 Executive Budget. Watch live: https://t.co/ohJa3H2tdO

— Andrew Cuomo (@NYGovCuomo) January 19, 2021

Cuomo wants New York to get most, if not all of the revenue generated from legalizing mobile sports betting and stated he prefers the market be run similar to the lottery system.

“The second alternative is to have the people of the state of New York get the profits from mobile sports betting and run it the way we run the state lottery, which is its state-run and the state gets all the revenue. I’m with the people. And I believe the people of the state should get the revenues. This is not a moneymaker for private interests to collect just more tax revenue. We want the actual revenue from the sports betting.”

Cuomo’s proposal could cause a political stalemate between him and state legislatures down the road, which could hold up the process of bringing mobile sports betting to New York.

Before Cuomo made his address, the Senate Committee on Racing, Gaming, and Wagering passed Senate Bill S1183.

The bill proposed by (D)Sen. Joseph Addabbo of the 15th State District would legalize mobile sport betting in New York by having online sportsbook operators tether to a retail casino. This format is used throughout the country and is used in New Jersey.

This bill will now go to the desk of New York’s Senate finance committee headed by (D)Sen. Liz Krueger, who has opposed sports betting before.

New York is missing out on millions in revenue simply by not legalizing mobile sports betting. According to a press release by Governor Cuomo, nearly 20% of New Jersey’s sports betting revenue comes from New York residents.

Nonetheless, with one of the largest populations in the US, New York could be a behemoth in the burgeoning US sports betting market, and lawmakers in the state know this.

“New York has the potential to be the largest sports wagering market in the United States, and by legalizing online sports betting we aim to keep millions of dollars in revenue here at home, which will only strengthen our ability to rebuild from the COVID-19 crisis,” saidCuomo in a release just two weeks ago.

Although it seems like New York legalizing mobile sports betting is inevitable, the process is still far from over until the lawmakers in the Empire State can agree on who gets the revenue and how many operators will be in the market.

Cuomo doubling down on his stance sets the stage for what could be a lengthy political battle.

News tags: Andrew Cuomo mobile sports betting New York Online Sports Betting Sen. Joseph P. Addabbo Sen. Liz Krueger

Legal Sports Betting In Ny

Coming from a strong background of writing, Robert writes stories that not only inform the reader but introduce them to new perspectives about topics they may already know. When not pumping out content Robert enjoys playing NBA 2k, and watching any sports that are on TV.