The model has drawn criticism from state legislators and gaming industry experts but is set to be signed into law after it was included in the state’s $200 billion fiscal year 2022 budget.
Under the proposed model, the New York Lottery would accept proposals from two mobile betting operators who would then be in a position to subcontract out four skins or licenses to sportsbook operators.
New York State Finally Approves Online Sports BettingA recent study by the governor’s office revealed that as much as 20% of New Jersey’s sports wagering revenue comes from New York residents. As a result, industry experts project that mobile betting could account for as much as 90% of New York’s sports wagering handle once it gets off the ground creating an industry that could be worth hundreds of millions to the state.
The approval of Gov. Cuomo’s preferred model brings to a close the months long stalemate between the governor and his own party members who had originally backed a proposal for legal sportsbetting in New York that include provisions for 14 online licenses.
Although Gov. Cuomo’s model is expected to take longer to generate revenue for the state, lawmakers will have tighter controls on the industry with only two main license holders in place.
Image credit: Zack Seward / CC BY-ND 2.0
Based in London, Natasha is a former sports journalist with experience working for some of the biggest athletes & brands in the world of sports and iGaming.