The unprecedented situation has severely struck the whole world over the course of the last 12 months, leaving many businesses struggling with financial obstacles. New York State is no different and the state’s government is looking for a way to compensate for the budget’s gaping holes. The recent proposal saw the concept of officially introducing online sports betting.
It is largely believed that the change in the gambling sector will bring more than enough revenue to the state’s budget and ease its financial difficulties. But with the proposed introduction of legal online sports bets, there are some concerns about potential sportsbooks. There are only 7 sportsbook licenses and they are already taken.
Skins
All seven sportsbook licenses are currently obtained by the state’s four commercial casinos and tribal gaming properties. This is a concerning issue for the industry since many gambling were eyeing the state’s market as one having immense potential. That is why authorities are currently debating on the two-skin model of operations, which will allow casinos to cooperate with other sportsbooks in order to bring greater variety to the market.
However, the two-skins model of operations is far from confirmed and the casinos are currently awaiting for official statements from the state’s management. Many of the casinos have already made pre-agreements with other gaming providers about the proposed change. Rivers Casino in Schenectady is one of them, which recently signed a deal with Penn National Gaming. The gambling venue is already operating BetRivers Sportsbook.
Rivers Casino will be using its first license for its own BetRivers sporting wagering platform. But if the proposition comes to life, the casino would be able to license Barstool Sportsbook from its latest partnership with Penn National Gaming. The two-skin or license model is hugely dependent on whether the state will adopt the single or multi-operator model for the proposed online sports wagering.
If the suggestion sees the life of day any time soon, these are the already negotiated and pre-determined sportsbooks that will be able to enter the NYS online gambling market. DraftKings, BetRivers, FanDuel, Caesars, William Hill, Stars Group, and Bet365 have already had an agreement with the state. Then, there are the sportsbooks that will need the second skin approval – Barstool, PointsBet, Golden Nugget, WynnBet, TwinSpires Sportsbooks.
Record-Breaking Month
January saw the state’s sports gambling hit a substantial surge in the state’s four commercial casinos. According to reports, New Yorkers have placed around of US$3.57 million in record-breaking bet total for the whole month of January 2021 in Rivers Casino, Del Lago Casino, Tioga Down casino, and Resorts World Catskills. This further proves that sports wagering is a fan-favorite betting option and the proposed expansion to online markets will also prove to be quite profitable for the state’s well-being.
Estimations Back Multi-Operator Model
Spectrum Gaming has released a study that suggests that the multi-operator model will be significantly more profitable for the state of New York. Calculations from the study project that the launch of an online sports wagering platform by the currently-seven-licensed gambling properties in the state will bring the state budget’s around US$100 annually in gaming tax revenue.
Source: Richter, Erich “New York Online Sportsbook Licenses – Which Are Ready For Launch Now?” NY Sportsday, March 2, 2021
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