Trying to take heat off of his COVID-19 and sexual harassment scandal governor Andrew Cuomo has approved a limited operator model. This model has been opposed by most U.S. state lawmakers and almost everybody else in the sports betting & gaming industry. Under Cuomo’s signed plan to help rebuild the states $200 billion dollar 2022 budget, the New York State Lottery will be issuing requests for proposals from only 2 mobile sports betting operators. Those 2 chosen operators would then subcontract out licenses also known as “Skins” to another four sportsbook operators to compete with sportsbooks in New Jersey.
This will also be taxed at a rate higher than 12% that the New York casinos currently pay. They are prospecting a $500 million annual windfall from mobile sports betting in the state that will include desktops, laptop computers, and phones.
In 2020 New Jersey saw a sports betting handle of $6 billion dollars. Yes one of the best in the entire world thanks to it’s neighbor New York. Pennsylvania to the west and north had an impressive $3.5 billion running through their sportsbooks. What do they both have in common? They both allow mobile sportsbetting. Online Sports betting could make up 95% of the total handle as bettors will no longer have to drive down to the Meadowlands to place bets there.
There are still a lot of key details to come but as the leader in sports betting news and sports betting tips we wanted to break the story as soon as possible.
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“When the budget ends, that’s when the work starts,” state Sen. Joseph Addabbo told Sports Information Traders when requested for commentary on the new legislation. Senate Finance Chair Liz Krueger said on the chamber floor earlier today that she “expects a completed budget vote by as early as tonight.”
Addabbo said the New York Gaming Commission would work on further regulatory follow-up measures. Officials are hoping to launch online sports betting by September, before this years football season kicks off 5 months from now.
Troubled New York Sports Betting Laws
New York approved sports betting in 2019 but screwed up big time by not allowing and having mobile sports betting. Now they see how much money they are losing and that sports betting is one of the hottest things of 2021 and it’s time for them to make up for lost revenue and short falls caused by the pandemic. So now they are about to give Betrush, Fanudel, MGM, Barstoool Sports, and Draft Kings a chance to bid against each other and get a license to print money in New York.