New York Approves Limited-Operator Sports Betting Plan

Spread the Word:

New York has finally reached an agreement over the state budget that would legalize mobile sports betting in the state for the first time. The $212 billion budget for 2022, announced late last Tuesday, includes a limited-operator plan backed by Gov. Andrew Cuomo. The framework includes a monopolized market, with the New York State Gaming Commission taking requests for applications (RFP). The Democratic governor has repeatedly backed a state-run model since January. He reiterated his sports betting model on Monday while talking to reporters: “We’ll contract with them, and we’ll make money. We don’t need the casinos as a middleman.”

The Empire State would become the most populous state to legalize online sports betting. According to the governor’s prediction, his limited operator model will generate more than $500 million in annual revenue for the state. Once fully mature, New York mobile betting will contribute $5 million to youth sports and $6 million to combat problem gambling annually. The rest of the sports betting proceeds will go towards education.

Details of the ‘Final Agreement’

A press release from the governor’s office gives some insight into the New York mobile betting framework. The New York Lottery will issue an RFP and then will select at least two mobile betting operators. Each platform will then subcontract out licenses (skins) to four operators. The mobile sportsbook operators would be required to give 50% to 55% of their revenues back to the state, according to the information provided Tuesday afternoon by Sen. Joseph Addabbo and Assemblyman Gary Pretlow. The lawmakers further said that the platform providers will be required to pay a one-time fee of $25 million.

Addabbo said the work starts when the budget ends. He said that the New York Gaming Commission would work on follow-up regulatory measures. The expected launch for online sports betting could be September, ahead of the 2021 football season. However, even those lawmakers who have been pushing for online betting for years are not sure how the online sports betting framework would eventually translate into reality.

A Disappointing and Confusing Framework

The Cuomo-led sports betting framework raised more issues than it solved. It’s a blow to a competitive sports betting industry sought by not only Sen. Addabbo and Assemblyman Pretlow but the entire legislature. In January, both lawmakers backed a competitive model, proposing a bill that would allow New York’s commercial casinos to pair with two mobile skins each. The competitive model was backed by the Assembly and the Senate in their budget proposals last month.

Governor’s duopolistic model also raises concerns for the gaming market in general and the Oneida Indian Nation in particular. The central New York tribe objected to Cuomo’s plan last week after learning it could be excluded from mobile sports betting. The tribe warned it the “violation” could cost the state nearly $70 million in annual payments from tribal slot revenue. On Monday, Cuomo and his financial director Mujica sought to dispel the Oneida tribe’s concern and confirmed that the state plans to include the tribe in online betting. However, the negotiations have not moved an inch since.

Related News

NBA player
March 8, 2021

NBA Names Bally’s Corporation its Authorized Sports Betting Operator

Bally’s Corporation has announced a new partnership, making it the authorized sports betting operator of the National Basketball Association. The strategic deal revealed Thursday represents Bally’s second such sports betting […]

read more
Illinois March handle
June 7, 2021

Illinois House Approves ‘Limited’ In-State College Sports Betting

Illinois lawmakers approved Tuesday in-state college betting, allowing residents pregame bets at the retail sports betting locations. The state’s House sat overtime to pass Senate Bill 521 with a few […]

read more
June 11, 2019

Owner of Capitals and Wizards Outlines Plan for Washington D.C. Sports Betting

The nation’s capital will soon become a sports betting haven within the Beltway region, and billionaire Ted Leonsis can’t wait to get started. The owner of Washington D.C.’s professional hockey […]

read more
Richmond, Virginia
June 18, 2021

Virginia Lottery Flooded With Sportsbook Applications Against Limited Licenses

As many as 18 applicants have applied for the Virginia sports betting license against five available in the state, according to a lottery official. The applications are currently being reviewed […]

read more
New York Online Sports Betting
August 1, 2021

Survey: Over 30% of New Yorkers Plan to Bet Once Mobile Betting is Legal

As many as 32% of New Yorkers plan to wager once the state offers legalized mobile sports betting, according to a survey released Tuesday by Empire Stakes. The survey site […]

read more
New York Online Sports Betting
June 10, 2021

New York Casino 2021 Plan Sinks Amid Manhattan Lawmakers’ Opposition

Manhattan lawmakers have disrupted Gov. Andrew Cuomo’s plans to fast track a Las Vegas-style casino in New York City, according to the latest report. The governor intends to push the […]

read more
New York Online Sports Betting
August 21, 2021

New York Gaming Commission Approves Final Mobile Sports Betting Rules

The New York Gaming Commission (NYGC) unanimously approved Monday proposed mobile sports betting rules following a quick meeting and a little discussion. It was the last procedural hurdle between the […]

read more
"Welcome Back NYC" sign
March 18, 2021

New York House and Senate Pass Multi-Operator Sports Betting Bills

On Monday, both New York legislative chambers passed multi-operator mobile sports betting bills within their budgets, paving the way for online sports betting in the state. Both the Democrat-dominated chambers […]

read more
New Jersey sports betting
June 2, 2019

New Jersey Issues Second Operator Fine for iGaming Geolocation Violation

For just the second time in the agency’s nearly yearlong history regulating online gambling, the New Jersey Division of Gaming Enforcement (NJDGE) has fined an operator for allowing wagers to […]

read more
Harrah's Las Vegas at night
June 17, 2021

Harrah’s Las Vegas Unveils a $200M Renovation Plan

Harrah’s Las Vegas has recently completed its $200 million renovation plan, including redesigned guest rooms, a casino remodel, and new LED marquees. According to a June 11 news release provided […]

read more
January 5, 2021

Hawaii Governor Objects to Kapolei Casino Plan

Last Monday, Gov. David Ige rejected a proposal approved the week before by the Hawaiian Homes Commission to build a casino in Kapolei. The proposed casino build was on the […]

read more
FanDuel retail sportsbook
March 9, 2021

FanDuel Becomes First Operator to Join AGA Responsible Sports Betting Initiative

FanDuel Group became the first mobile sportsbook operator on Monday to join a national campaign to promote responsible sports betting. It came as the New York-based group partnered with the […]

read more

Stay Updated & Receive Exclusive Offers

Be the first to know when new states legalize online gambling and gain access to exclusive casino and sports betting promotional offers.