The legislative push to add digital wagering could make New York the largest US sports betting market if properly structured, according to a PlayNY white paper.
‘The State of New York Sports Betting: An Examination of the Forces Shaping the Market,’ authored by analysts Eric Ramsey, Dustin Gouker, and Matthew Kredell, suggests that the state has lost of millions of dollars in revenue since retail betting launched in July 2019.
According to research, an open market could draw $37bn in bets, more than $2.5bn in operator revenue, and more than $300m in tax revenue over the first four years after launching online sports betting.
However, it is added that a closed market could draw $7.5bn in bets and $750m in revenue, but $375m in revenue for the state.
“New York is a complex market, but one that the entire US gaming industry is watching intently,” said Ramsey. “There are so many factors at play in the charge to regulate online sports betting, including Governor Andrew Cuomo’s political fate.”
The debate on whether to legalise online sports betting and how to structure the regulations around it remains ongoing, with a resolution, at least for this year, possible during the spring.
Though it is warned that much could change before that happens, with two major factions having developed in the debate of how to structure online gambling.
One, supporting an open market that would invite multiple private operators to compete in the state, is led by Assemblymember James Gary Pretlow and Senator Joseph Addabbo Jr.
The other, a state monopoly model with which New York captures the lion’s share of revenue by contracting with a single sportsbook operator, is a move championed by Cuomo.
“The bottom line is we believe an open market will offer broader benefits for the state and its residents,” added Gouker. “But a closed market should produce more revenue for the state, and that is tempting for policymakers.”