Last week, the mobile sports betting initiate of New York State was a hot topic of discussion once again. Due to the resignation of Governor Andrew Cuomo, the online betting platform could see some changes, as reported by state officials. For example, politicians say that the steep 50% tax floor on an operator’s gross gaming revenue could be reduced.
The state has opted for the introduction of online sports betting as a way of advancing the gaming industry and accumulating some extra revenue for the state during the unprecedented situation. Governor Cuomo was a huge advocate of the high-ceiling gross gaming revenue for operators, but now the rate could change, which is welcome news for all applicants to join the market.
Last Week Panel
Last Tuesday, a panel of gaming industry representatives and New York legislators discussed matters in relation to the launch of mobile sports betting at the Racing and Gaming Conference at Saratoga. Assemblyman J. Gary Pretlow stated that the governor’s resignation would not complicate the legal process of launching the gaming expansion but it could help the matter.
According to Mr. Cuomo’s estimations, mobile sports betting would bring the state US$357 million in FY 2023 before fully fulfilling its potential of US$500 million in two years. However, a legislative bill, sponsored by Mr. Pretlow and Sen. Joseph Addabbo Jr. suggested that the initiative could generate US$350 million on an annual basis. On Tuesday, Mr. Pretlow stated that the governor did not provide any indication on whether his number would be achieved.
During the panel, David Isaacson, senior vice president at Spectrum Gaming Capital. Isaacson gave a presentation study on the New York gaming market. According to which, the state is a market of huge opportunity for gambling, and it attracts huge betting crowds, which are the most valuable customers for sports betting offerings. The study suggests that the market can exceed US$1 billion in sports betting revenue once it reaches its full potential.
As of right now Governor Cuomo’s successor New York Lt. Gov. Kathy Hochul, has not said much on mobile sports betting. However, back in the spring, she spoke on the implications of the tax of online sports betting on a podcast. According to her, all neighboring states are already offering such products and the time has come for NYS as well and the state needs US$500 million a year in revenue from the initiative.
Monday Meeting
Despite the Governor’s resignation the New York State Gaming Commission still reported progress on mobile sports betting. Last Monday, the commission unanimously passed a set of online sports betting regulations in a quick manner. The rules include provisions on mobile sports betting requirements, integrity protections, accounting, and financial stats requirements, and anti-money laundering plans
RFA Concluded
After a brief delay, the gaming commission has officially started its Request for Applicants process on July 9, 2021. Gaming companies or applicants had a month to submit their bid packages in the hope to join the gaming expansion. The commission will now assess and award points on each proposal based on several factors. The final decision for the two platform providers and the four gaming operators will be revealed in December.
Source: Rybaltowski, Matt “The Departed: Critical Questions Remain On New York’s Mobile Sports Wagering Tax Rate Matrix As Cuomo Prepares To Leave Office”, Sports Handle, August 19, 2021
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