Mobile Betting Grapple in the Big Apple
One of the true legal sports betting failures in the United States so far comes in the state of New York, where the platform was OK'd by lawmakers in January 2019 but failed to address any sort of mobile betting. Legal sports wagers in the state are still limited to four-upstate casinos and still fail to address the viability of betting apps, which have been the bread-and-butter for neighboring states so far.
But calls for New York to adopt some form of mobile betting platform have grown louder as of late. With the New York State Division of the Budget forecasting a fiscal 2021 revenue drop of $13.3 billion and a deficit of an estimated $54 billion, pressure is heaping on the state to find new avenues of revenue generation. Mobile betting has been identified as a way to immediately generate that revenue.
“If you weren’t considering mobile sports betting legalization prior to the virus, I think the virus may put you in the position that you almost have to. The economic impact of the Coronavirus is not only for this year, it’s next year too. The idea here is we had a $7 billion deficit before the virus and then the virus hit us with another $10 billion,” said Senator Joseph Addabbo back in May.
Some History
New York's legal sports betting platform is not new. It was January, 20219 that it came to fruition, during a time that New Jersey and Pennsylvania had already been enjoying success with their form of legalization. Their platforms, unlike what New York adopted was predicated on a strong mobile presence.
Lawmakers in New York quickly recognized the benefits of mobile apps in New Jersey and Pennsylvania and actually passed a bill to amend the sports betting bill to include online wagering - by a 57-5 vote. Only New York Governor, Andrew Cuomo stood in the way and he vetoed that bill effectively killing New York's chances of cashing in on mobile betting for the state.
The reasons for Cuomo's resistance remain unclear to the frustration of many that see the potential of internet betting in the state. Some point to an ongoing battle with the two biggest DFS providers in the world and others point to the fact that the New York constitution would have to be changed before mobile betting could become a reality.
There's Nothing Like a Pandemic to Change Minds
New York was one of the hardest hit states as the coronavirus pandemic not only killed scores of citizens but it also shut down the states (including its only 4 upstate casinos) and effectively drained state and local coffers, dealing a body blow to New York's economy. New York’s financial situation is dire with little reason to think it will dig itself out without some outside help.
While New York's legal betting industry contributed exactly zero to the state's economy during the time of widespread coronavirus shutdowns, states like New Jersey, Pennsylvania, and Indiana, although hugely diminished, contributed something to the state through tax dollars collected.
Evidence That New York Should Be in Line for Mobile… Someday
Lawmakers have already shown a willingness to bring on a mobile betting platform. It appears as though Governor Cuomo will have to be won over in order for betting apps to be welcome in New York. Senator Joseph Addabbo estimates that New York is missing out of between $160 to $200 million per year from mobile betting alone – that alone should get Cuomo’s attention.
Lawmakers in New York aren't blind to the fact that bettors are flowing over their borders to New Jersey to place their bets. Some estimates have 25% of New Jersey's impressive monthly handles coming from New York residents - it was in January and February of this year that the Garden State took in over $1 billion in bets making that 25% even more of an eye-opening number.
New Jersey has generated $273,436,129 in revenue since July 2019 while New York has made $9,646,708 over that span. New Jersey has so far generated $64.3 million in revenue from sports betting for the year - New York has so far posted just $965,000.
Something Has Got to Change
New York was having financial issues before the coronavirus pandemic and they have only been exacerbated the last few months. Something HAS to be done to stop the bleeding and mobile has been identified as a benign way to do just that.
Mobile betting has been proven around the country to be a huge revenue generator. Two of New York’s neighboring states have benefitted greatly.
It is truly heartbreaking what New York went through with the pandemic. With it somewhat in the rear-view mirror, it is time to start thinking about solutions in the state. One obvious solution is staring New York right in the face.
