By Bretton Daniels
Following a ruling from the Supreme Court to permit sports betting outside of Nevada, many U.S. states have vied to legalize such operations.
While New York might not have been as fast as New Jersey to act, the state seems to be more open to the idea. In January, the New York State Gaming Commission announced an initial approval of proposed rules to potentially permit sports betting wagers at four upstate casinos. Unsurprisingly, this is big news for New Yorkers, as the state could soon take a significant leap into legalized sports betting.
However, in the meantime, New Yorkers have no choice but to make their way to New Jersey to place a sports bet. That’s because sports betting has been legal in the Garden State since June 2018. Once over the state border, residents and tourists are free to place wagers online, even betting on both professional and major collegiate events.
Crossing the River
After eight years of hard work to permit sports betting in New Jersey, Governor Phil Murphy signed a bill in June 2018 to legalize the wagering. As a result, it allows casinos in Atlantic City and racetracks to attract new customers and business, which ensures their longevity and strengthens the economy.
However, on the other side of the water, New York continues to vie for the legalization of sports betting. Despite the announcement that 888 Casino sponsors the NY Jets, New Yorkers still have to travel the Garden State to place a sports bet. Therefore, many must make the journey across the George Washington Bridge until their GPS recognizes they are in New Jersey, at which point they can place a bet before making the trip back to the Big Apple.
While it will have been music to New Yorkers’ ears that four upstate casinos could one day permit sports betting, the decision is anything but set in stone. In fact, the New York State Gaming Commission’s decision will reportedly not be final until a 60-day comment period has passed. They will then need to review the comments for no objections.
It also is unclear whether the Empire State will authorize online betting, which could help the state to generate a considerable amount of tax revenue. In fact, online sports betting is potentially bigger in comparison to brick-and-mortar casinos.
According to New York Governor Andrew Cuomo’s administration, legalizing online betting would require altering of the State Constitution. For this reason, New Yorkers should not pin their hopes on online betting anytime soon, as the change would require passage by two different legislatures as well as approval during a voter referendum.
The Success of Sports Betting in New Jersey
The Garden State has experienced the financial benefits of sports betting since the law passed. According to New Jersey officials, the state has generated $928 million in sports bets alone from June to November 2018. Both DraftKings and FanDuel also reported that 10 percent of this revenue is from New York customers.
Following payouts to winners, both the casinos and online betting companies have reported gross revenue of $73 million. As the Garden State has an 8 percent casino tax revenue and a 13 percent levy on online sports betting companies, New Jersey has earned an incredible $8 million, with the figure continuing to grow.
Following payouts to winners, both the casinos and online betting companies have reported gross revenue of $73 million. As the Garden State has an 8 percent casino tax revenue and a 13 percent levy on online sports betting companies, New Jersey has earned an incredible $8 million, with the figure continuing to grow.
The Revenue Potential in New York
New Jersey has already demonstrated the economic potential of sports betting, so it is no surprise the New York State Gaming Commission has proposed rules for sports betting in four New York casinos.
In fact, according to backers of legalized sports betting in the Big Apple, New York could potentially generate between $10 million to $30 million per year, as it has considered an 8.25 percent casino tax rate.
There seems to be a strong demand for sports betting in the Empire State, as New Yorkers want to make the journey to New Jersey to place a sports bet. In fact, according to backers of legalized sports betting in the Big Apple, New York could potentially generate between $10 million to $30 million per year, as it has considered an 8.25 percent casino tax rate.
Another advantage New York would have over its New Jersey rivals is tribal casinos. Sports betting could one day become available at the Turning Stone. The Turning Stone is near Syracuse and is owned and operated by the Oneida Indian Nation.
However, no one under the age of 21 can bet on any sporting event, and casinos can decline bets that exceed $10,000.
However, no one under the age of 21 can bet on any sporting event, and casinos can decline bets that exceed $10,000.
New York Lawmakers
Of course, to legalize sports betting in New York, it must have the backing of the state’s lawmakers, which it seems to have. In January, Governor Cuomo stated during his State of the State address that he wishes for sports betting to finally legalize in the Big Apple’s four upstate casinos.
Rich Azzopardi, Senior Deputy Communications Director and a spokesperson for Governor Cuomo, also commented: “We continue to evaluate this issue and the actions of other states, which can help us to decide on the best way forward for New York.”
It is, therefore, likely that the success of New Jersey’s sports gambling legislation has inspired the New York State Gaming Commission’s recent proposal for the Empire State.
While New York might not have been as fast to act as New Jersey, it seems that sports bet of the day will become a reality in the Big Apple. However, the future of online wagering is still unknown, as it could take many years to alter the State Constitution. In the meantime, New Yorkers will have no other choice but to make their way across the George Washington Bridge to the Garden State to place a wager, which is a win for New Jersey for the time being.
Photo credit: 1) Atlantic City aerial view. 2) George Washington Bridge. 3) Youtube video.
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