Interesting Facts About the Betting Industry in New York
By Space Coast Daily // January 4, 2022
Did you know New York was one of the first states to advocate for online betting? Back in 2009, the Empire State sent a letter to the Department of Justice together with Illinois asking whether states could sell lotto tickets online.
Two years later, the DOJ responded saying not only could states sell lottery tickets online but they could also legalize online casinos. Interestingly, neither Illinois nor New York legalized online casinos at the time.
Instead, it was Delaware, New Jersey, Nevada and Pennsylvania that took action on the DOJ’s interpretation of the Wire Act. All the same, sports betting is now legal in New York and here are a few intriguing facts you should know.
NY Legalized in-person Betting in 2019
After the Supreme Court struck off PASPA Act in May 2018, New York took a while before deciding to legalize sports betting. The state launched its first sportsbook on July 16, 2019—the Rivers Casino.
Although NY legalized sports betting in 2019, it had already created a framework for legalizing the industry way back in 2013. At the time, it was difficult to run sportsbooks with the law still prohibiting sports gambling.
The framework authorized four sportsbooks to handle sports betting. Many of the companies are located on reserved land and are run by tribes.
20% of New Yorkers Bet in New Jersey
New York’s closest sportsbook, Resorts World Catskills, is a two-hour drive from the city. By comparison, New Jersey is one hour away from the city. What’s more, mobile betting has been legal in NJ since 2018.
In other words, New Yorkers don’t have to visit Atlantic City to be on football and baseball. All they need is to cross the state border and bet online. In 2019, 20% of the $5B betting handle in New Jersey came from New York punters.
That being said, driving to the Garden State isn’t the only way to bet on sports in New York. The other option is to use an offshore betting site.
New York’s gambling laws do not prohibit its citizens from betting at offshore sportsbooks. It only prohibits companies from setting shops within the state (Source: https://sportslens.com/us/ny/).
And guess what? They’re so diverse you’re bound to find the right app for you. You can find a sportsbook for quick payouts. There’s a good app for streaming, crypto payments and horse racing. Check it out to compare the bookmakers.
NY Licensed 9 Online Sportsbooks in 2021
The New York State Gaming Commission picked approved nine companies to run mobile betting in NY earlier this year. The companies are divided into two groups. The first group is called Kambi and features well-known brands like Wynn Interactive, Resorts World, Caesars, Rush Street and PointsBet.
The second group applied their license through FanDuel and includes DraftKings, BetMGM, Bally’s and of course, FanDuel. Most of these sportsbooks have plans to launch mobile betting in January 2022.
In many states where sports betting is legal, DraftKings and FanDuel have been dominating the market. Will this happen in NY? It’s a possibility. The two companies already command a giant market share of the Empire State’s Daily Fantasy Sports market. This means they already have fans in the state.
NY Could Become the Country’s Biggest Betting Market
Before Gov. Cuomo left office, he went on record saying New York has the potential to become the country’s biggest sports betting market. Although this is yet to happen, data shows it can.
New York has nearly 20 million people, more than double New Jersey’s population of 8.8 million. Presently, New Jersey is the country’s biggest sports betting market with an annual betting handle of $5 billion.
Going by population, it wouldn’t come as a surprise if New York generated double NJ’s figures in the next couple of years. The Empire State is home to millions of sports fans. And statistically, sports fans are the reason sports betting exists.
In case you’re wondering, the median income in New York hovers at $33,000, five thousand dollars below that of New Jersey. This isn’t a big concern, though. The state’s huge population of sports fanatic will be the driving force for mobile betting.
NY’s Taxation is Extremely High
In the beginning, New York planned to run mobile betting through a state-owned app. A few states, including DC, already do this. Over time, the state changed tune and opted to commercialize the industry.
This came with one challenge, though: high taxation. The nine sportsbooks licensed to operate mobile betting in the industry will need to pay 51% of their gross income to NY as tax. To make it clear, New Jersey taxes online sportsbooks 13%, four times less than NY’s current tax.
The only other state with an insane taxation rate for betting site is New Hampshire, which charges the same 51% rate as New York. While many people consider NY’s taxes extreme, bookmakers are glad to offer their services in the state owing to its large population.
You Can Bet on Nearly Every Sport
New York’s legalization of mobile betting is part of its plan to eliminate illegal gambling. To make it a success, the Empire State legalized betting on nearly every sport in the world. Let’s start with the Major Leagues.
New York betting companies will provide betting markets for the NFL, NBA, MLB, NHL and MLS. What’s more, they will cover college sports, women’s sports, tennis, MMA and eSports. If you prefer to bet on international sports, brace yourself for the EPL, La Liga, South American soccer, Formula One and cricket.
In other words, New York’s betting laws are pretty progressive. The only thing they limit is betting on high school sports. Also, New Yorkers can’t bet on state-based college games. However, they could bet on out of state college matches.
Another area prohibited is betting on events where the outcome is already known. This includes betting on celebrity award shows, WWE events, movies and TV shows.
