New York governor Andrew Cuomo has unveiled plans to make the state the most-populous yet to legalise mobile sports betting.
The plans follow a $16 billion budget gap relating to the coronavirus pandemic, which has led to the governor proposing the idea of seeking an operator or platform to offer mobile sports wagering in the state of New York. The plans will be formalised in the 2021 State of the State address next week.
Currently, sports betting is legal in the state, however, it is restricted to bets only being placed inside of casinos. The sports-betting market in the US has grown exponentially since the Supreme Court legalised states outside of Nevada to offer wagers in 2018. According to the American Gaming Association, 19 states have begun to offer sports betting and six ore have approved it but have yet to put it into operation.
Vixio GamblingCompliance have predicted that the US market could reach $10 billion by 2025, with last years market estimated to be around $1.6 billion.
According to a 2019 report from Eilers & Krejcik, New York residents have been crossing the borders to neighbouring New Jersey to place their bets, thought to be valued at $837 million, which is around 20 per cent of the states overall betting activity.
Cuomo’s statement added: “At a time when New York faces a historic budget deficit due to the Covid-19 pandemic, the current online sports wagering structure incentivises a large segment of New York residents to travel out of state to make online sports wagers or continue to patronise black markets.”
A statement published on the Daily News website from Cuomo said: "New York has the potential to be the largest sports wagering market in the United States and by legalising online sports betting we aim to keep millions of dollars of tax revenue here at home, which will only strengthen our ability to rebuild from the Covid-19 crisis.”
Cuomo was also keen to stress that unlike other states that have legalised sports betting, he wanted to see a greater portion of revenues provided to the government, rather than just the casinos themselves.
"We want to do sports betting the way the state runs the lottery, where the state gets the revenues,” he added.
“Many states have done sports betting but they basically allow casinos to run their own gambling operations. That makes a lot of money for casinos. But it makes minimal money for the state. And I’m not here to make casinos a lot of money. I’m here to raise funds for the state. So we have a different model for sports betting.”
Author: Jake Wilkin