ALBANY, N.Y. (NEWS10) — Governor Andrew Cuomo said his proposal to allow mobile sports betting in New York could generate $500 million in revenues once the program is matured. Currently, sports wagering in New York is only allowed in-person at the state’s four commercial casinos.
Under the Governor’s plan, anyone of age could bet on sports from their phone throughout the state. Officials on both sides of the aisle said it will allow New York to compete with other states that have already made it legal.
“I think it’s one of the better proposals that the Governor has, but I’ve always supported legalizing online sports gambling and anything that supports free enterprise and economic opportunity,” said Republican State Assemblymember Karl Brabenec.
The rollout would be overseen by the NYS Gaming Commission.
“The state would seek one or more providers to basically support the infrastructure and the activities of mobile sports gaming. And then all of the gross gaming revenue. Basically, all of the wagers less any winnings would be directed into the state Lottery Fund and used to support education and, like, other lottery revenues,” said Citizens Budget Commission Senior Research Associate Patrick Orecki.
Orecki said the proposal is written similarly to how some other states have done it.
“In New Hampshire, it’s the same kind of premise, and they selected DraftKings to run their service to the state. And they’re kind of the single provider with the money being directed to the state’s lottery fund as well,” he explained.
But it will take some time before large revenues are expected to come in. The plan, which also allows casinos to petition the state for a slot tax rate reduction, is forecasted to generate $49 million in Fiscal Year 2022 and $357 million in Fiscal Year 2023.
Whoever the selected provider or providers are will also need to “include safeguards against abuses and addiction,” according to the State of the State book.