New York Leaves Mobile Sports Betting Out of State Budget

New York Leaves Mobile Sports Betting Out of State Budget

Mobile sports betting aimed to make a big impact on the state of New York but the ongoing COVID-19 pandemic has led the state to focus only on the essentials. As a consequence, mobile sports betting was left out of the state budget this year.

Expedited legislative session

The state’s legislative session was cut short this year because of the social distancing advisory laid out by the authorities. Mobile sports betting was inquired into during the session but failed to make it to the budget. The fiscal year 2020 budget now leaves no chance for the state to stop millions of dollars from leaking to New Jersey.

New York Leaves Mobile Sports Betting Out of State Budget

New York has become the coronavirus hotspot in the US and the state legislature is prioritizing healthcare and other essential measures at the moment. However, the mobile sports betting bill at this time would have helped the state prevent tens of millions of dollars from seeping into neighboring New Jersey and also created a new source of revenue.

New York’s attempt at mobile sports betting

The Spectrum Sports Group was previously awarded a bid by the state to study the economic impact of online sports betting on the state. However, the study won’t publish its results before June 2020. The legislature wouldn’t be in session then and the mobile sports betting question will be pushed to 2021.

According to Governor Andrew Cuomo, legalizing online sports betting in the state will require an amendment to the state constitution. This means that the process will be long and hard, which is simply not feasible in a short legislative session. The state does permit athletic wagering in four retail casinos and tribal casinos.

While the state waits for online betting yet another year, its casinos are making only $9.6 million in revenue from athletic wagers. That translates to a tiny $0.85 per capita revenue for 12 months. During the same period, New Jersey earned $33.81 in sports betting revenue per capita last year.

The striking contrast between the neighboring states comes because of the online availability of sports wagering options. The state earned 85% of its sports betting revenue from mobile and online bets which accounted for over $30 million per month. A big reason behind this staggering success is state crossover betting. Many New Yorkers are visiting New Jersey borders to place mobile bets, which takes away revenue from local operators.

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About sherlock

Sherlock Gomes loves to write and express his views on anything related to Gaming, Gambling, & Casino. He has been covering Gaming for more than two years now.

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