New York Gaming Control Board Doubles Down on Sports Betting
As of Jan. 8, New York sports betting is set to go online three years after the state initially legalized in-person betting only.
It comes after months of work in 2021, and as we approach the NFL playoffs and then the Super Bowl, just before March Madness, New Yorkers are going to be able to place bets on their favorite sports anywhere in the state.
With it comes risk, but also more taxable income for the state, with also the increase in things like jobs and entertainment options. Since heading for online betting, New York has faced questions in areas like daily fantasy sports (DFS) and if this is indeed gambling or just a game of skill.
The state now faces a court hearing five days before the Super Bowl to determine this, but sports betting sites are here to stay. It is New York’s riskiest move yet to fix their billions of dollars shortage in the state budget.
Why is New York Going All in on Sports Betting?
The tax rate that the state will take from revenue for the online sportsbooks does really emphasize how much they are going all in on sports betting to fill the hole in their finances made by the pandemic.
Going to the state is 51% of the revenue. To put in perspective, New Jersey has the highest monthly sports betting handle of all states because 20% of that money comes from New Yorkers, so the potential income the state will receive is enormous.
It does, however, create a bit of a negative relationship with operators as New York's tax rate is the highest in the country, with booming Pennsylvania sportsbooks taxing 34% of the operators’ revenue right next door.
It is set to be one of the post-pandemic saviors in terms of tax income for the state.
Nine Sportsbook Options Makes for Only Healthy Competition
New York’s move to online betting has brought a lot of competition, but this is otherwise extremely beneficial for the state as it will bring in significantly greater income. As of now, there are nine sportsbooks set to go online, including DraftKings and FanDuel.
It shouldn’t affect those sportsbooks long term and the state is still going to see great competition over time, but because of the laws stating that each operator must be housed in a New York casino, there are some roadblocks to deal with initially.
The Gaming Control Board could have easily decided to have just one operator for New York sports betting and have them take all the market, similarly to that of other states. However, they really have gone big with online sports betting by allowing nine to go online.
It only adds further taxable revenue streams for the Empire State, and as shown next door in New Jersey sports betting, will only benefit the state in years to come.
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