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Why NY Sports Betting May Look Like Pennsylvania

David Burgundy | 29 Jan 2021

NY Sports Betting Unlike sports betting in Canada, the United States of America only allows this activity in a limited number of states, including Colorado, Illinois, Michigan, Pennsylvania, and Nevada. Legally, the rules and regulations are a patchwork of areas, with different degrees of directives. Only Hawaii and Utah ban all gambling outright.

The current Governor of New York State, Andrew Cuomo, however, wants to change his state’s viewpoint on the matter. But the plan he has in mind is a massive departure from the scheme lawmakers have been considering.

State Senator Joseph Addabbo and Assemblyman Gary Pretlow want to permit NY casino licensees to additionally offer sports wagering. They are willing to allow them an extra skin, expanding the market to a minimum of 14 operators across the state when the three downstate casino licenses have been granted. There is also some opening for the 3 Class III Tribal Gaming bodies in the state. All would be taxed 12% on mobile revenue.

Pennsylvania’s Precedent

The Keystone State has set a high barrier for entry into the kind of sports betting Canada has become used to. There’s a US$10 million licensing fee for new entries and they are taxed 34% on their revenue.

Bettors can wager on all college games, international sporting events, and professional sports in this state as long as they’re older than 21. They also need to be inside state lines and not feature on any self-exclusion lists. Bettors do not need to be permanent residents of the state.

New Jersey dominated the headlines at the end of 2020 as wagering on sports enjoyed an unprecedented surge in popularity. December 2020 saw the state setting a record handle from sports betting of US$996.3 billion, with this total no doubt helped by NY’s lack of access. It’s thought that bettors from the Empire State contributed as much as 25% to the market.

But Pennsylvania was busy setting records of its own, establishing a new one when a US$548.6 million total for betting was recorded, so it’s easy to see why their model is one worth considering.

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