New York Moves Ahead With Further Online Gambling Legislations, Mobile Sports Betting to Boost Economy

New York State Gaming Commission (NYGC)

As governors around the US present their yearly budgets, online gambling is once again a hot topic, with some states expanding their internet casino laws to boost their COVID-ravaged economies. New York’s Governor Andrew Cuomo finally included provisions to expand mobile sports betting, one of the few legal gambling options in the state - however, critics are continuing the fight to better the state/s legislation regarding gambling.

New York has voted in favor of allowing mobile and online poker and sports betting over a year ago, but government officials have not been able to come to an agreement on how to go forward. Gov. Cuomo’s proposed plan follows the New Hampshire and New Jersey state model, where the New York State Gaming Commission (NYGC) will entertain competitive bids from companies and select just one to be the sole provider and become a licensed casino in New York state.

According to Mobile Sport Report, “the two providers both would pay a one-time $25 million fee for a 10-year license. They also would owe a $5 million annual payment to whichever casino houses its mobile betting servers. The tax rate (or revenue share, as it is known in other lottery-run states) would be defined via the competitive bidding process.”

For example, in New Hampshire, DraftKings won the bidding process with a 51 percent revenue share bid. Pennsylvania went through a similar process for online poker, where they allowed several providers to win the contract as part of a group deal. The bidding model was popularized in New Jersey as well, where Governor Christie ended up allowing a number of poker companies and several online casino brands to legally operate.

Assemblyman Gary Pretlow and Sen. Joseph Addabbo Jr. are vocal against Cuomo’s plan, and instead drafted legislation that opens up the margins and qualifications allowing far more companies to bid, including casinos on indigenous tribal land. That has since been rejected by the Governor’s office but gained support amongst constituents. Many of New York’s brick-and-mortar casinos are located on tribal lands, and those companies are offering to take up the bid and provide mobile betting services within the state, but continue to be ignored in the fight to legalize various forms of mobile gambling.

Cuomo’s plan to go for the largest possible revenue could be a response to a sunken economy after a nearly year-long shutdown. His administration has previously stated that they expect to see $5 million in revenue from online sports betting in just three years, although economists have called this “optimistic speculation.”

Many states are following New York and looking to online casinos to boost their local economies. A sports betting bill was approved by one legislative body and awaits a signature in Oregon, while Michigan casinos and sportsbooks are looking to draw in new clients with a special promotion rewarding those who can show their COVID vaccination cards.

The bidding process in New York opens on July 1st, 2021 for 30 days. The state’s gambling commission will then have 150 days to select a winner. A list of the states which have already moved toward legalization and what online gambling categories are available to bet on in each state can be found on Justgamblers.com.

This article does not necessarily reflect the opinions of the editors or the management of EconoTimes