New York May Use Mobile Wagering to Fill Budget Gaps

New York May Use Mobile Wagering to Fill Budget Gaps

New York Cuomo hinted last week that the government may use revenue from mobile sports betting to fill the gaps in the state budget. Cuomo said that he is not opposed to online betting in New York.

Will New York think about sports betting again?

New York is planning to revisit its plans for legalizing mobile sports betting. Governor Cuomo said that he may sign the bill to legalize wagering via mobile applications. The state wants to bring a fresh inflow of funds to its coffers after it was left reeling because of the coronavirus pandemic. However, experts believe that mobile wagering revenues will not be enough to fill the budget gap for the city. They suggest that the legislators must also consider the option of working on an integrated casino resort in the city.

New York May Use Mobile Wagering to Fill Budget Gaps

In a recent note sent to investors on Friday, Deutsche Bank’s gaming analyst Carlo Santarelli said that the government could earn $75 million to $125 million if the tax rate is between 8% to 13%. He said, “The taxes from sports betting would equate to roughly 1% of the annual run rate deficit. Over time, Gov. Cuomo has resisted mobile sports wagering and is said to be largely dismissive of the impact from the tax revenue stemming from sports betting in general. We largely agree with this.”

The budget deficit of the state

New York’s budget deficit is standing between $70 billion to $75 billion for 4 years. Federal aid could bring it down to $60 billion or $15 billion per year. The Deutsche Bank analyst suggests that a large part of this deficit could be met by a destination resort casino. He said that the resort will have a sizeable impact on both job creation and state tax.

Santarelli said that Queens is the most likely location for an integrated casino resort. The front-runner for creating the property in Las Vegas Sands. The firm could spend over $5 billion on the project and get a significant recurring tax revenue for the state while adding hundreds of new jobs.

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.