Last Updated on January 6, 2021
After years of opposition, New York Governor Andrew Cuomo is finally changing his tune on NY mobile sports betting. The long-time opponent of online sports betting hinted at this change of heart in December but is now going all-in on the measure.
“New York has the potential to be the largest sports wagering market in the United States, and by legalizing online sports betting we aim to keep millions of dollars in tax revenue here at home, which will only strengthen our ability to rebuild from the COVID-19 crisis,” Cuomo said in a statement.
This is massive news for New Yorkers and it could significantly alter the sports betting landscape in the Northeast. New York is by far the largest potential market for mobile sports betting in the area and it will be one of the biggest dominoes to fall when the legislation finally passes.
Fortunately, Cuomo’s support is confirmation that online sports betting is coming to New York in 2021. The legislation has long had the support to pass the NY Senate and Assembly, but it needed backing from Cuomo and Speaker Carl Heastie. A sports betting bill sponsored by State Senator Joseph Addabbo Jr. unofficially passed by a vote of 57-5 in the summer of 2019.
— New York Senate (@NYSenate) June 17, 2019
New Jersey Is Crushing New York
If there was any doubt about how much tax revenue mobile sports betting could bring to New York, look no further than New Jersey. Eilers & Krejcik Gaming estimates that $837 million went from New York to New Jersey for sports betting in 2019. That doesn’t even begin to factor in all the illegal and offshore gambling that takes place in the Empire State.
New York is expected to adopt a tax rate between 8.5 and 13% on mobile sports betting. That’s upwards of $100 million each year if all goes well. Not to mention, sports betting handles continue to increase all across the country. New Jersey is going to haul in close to $6 billion in total handle this year despite a four-month sports shutdown and the cancellation of major events like March Madness, the British Open, and more.
New Jersey was one of the leaders in mobile sports betting and they are reaping the benefits of getting to the party early. For New York, it’s better late than never.