In a press release on Tuesday New York Governor Andrew Cuomo stated that he would consider sports betting but he still favors the lottery model kind of gambling. He also added that he would be open to “one or more” licencees, meaning that the only remaining option for the lottery backing is to be single-operator-oriented.
Cuomo believes that his proposal could generate plenty of tax revenues for the NY state in the amount of around US$500,000,000. This further supports the argument for online sports betting, and it has been quite a while since this debate occurred. The legalization of online wagering will benefit both the state and the gambling enthusiasts who are having the toughest of times with the current world situation, meaning that it will be much safer to bet from the comfort of your home.
The Solution
The governor states that his concern is not whether the sports online betting in the state, his concern is rather who and how will make the profit. One of the proposals is to allow such online betting which will be a huge profit boost for casinos. The second suggestion will be to allow people of the state to collect profits from online sports betting, and have the state-run and receive all revenue.
Unfortunately, after expressing his desire for the state to collect all the revenue from the already mentioned legalization of online sports wagering, Cuomo did not provide any further details on the matter in his almost hour-long budget briefing. States such as Virginia and Tennessee have an already running multi-operator model in compliance with their respective government regulations, while other states have become to monopolies with their lottery-run models.
What is Best for the State
It has been a long time since gaming stakeholders have started pushing for a multi-operator model in order to increase both revenue and competition in the area. The state of New Jersey has already adopted such a model with more than 20 sportsbooks in the mix.
Earlier this month, Cuomo claimed that he’s willing to legalize online sports betting in the NY state, only to disappoint the gaming industry with his following comments that he is considering a single model-operator. The NY governor believes that such a model would be able to generate 10-times the revenue for the state, with all the winning being collected by the state’s lottery.
Gaming experts believe that the multi-operator model proved to be much more profitable since it allows competition in the industry. Meanwhile states that run a single-operator model fall behind in terms of both revenue and improvement. After Cuomo’s announcement, two identical multi-operator online betting bills have been submitted by New York Assemblymember J. Gary Pretlow and Sen. Joseph Addabbo.
Both bills suggest that this will allow 14 online operators, including big names such as DraftKings and FanDuel. There are also proposals for sport betting kiosks at stadiums, arenas, and off-track betting facilities. Whether Cuomo’s office will opt for the more profitable multi-operator model or the single-operator monopoly will be decided in the near future.
Source: Butler, Ryan. “Gov. Andrew Cuomo Gives Little Update on New York Sports Betting in Budget Address; Still Prefers Lottery Model”, Action Network, January 19, 2021
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