NY Governor Unveils Plan To Allow Mobile Sports Betting

NY Governor Unveils Plan To Allow Mobile Sports Betting

New York Gov. Andrew M. Cuomo has unveiled a plan to allow mobile sports betting in the Empire State, Wednesday (Jan. 6) according to several reports and a press release.

Cuomo said the present digital sports betting framework encourages a sizable population of New York residents to leave the state to place sports bets online or keep going to black markets as New York faces a “historic budget deficit” because of the pandemic. A study found that almost 20 percent of New Jersey’s sports wagering revenue comes from New York residents, which makes New York lose “millions” in lost taxes, according to the press release. Sports wagering is now legal in 14 states.

“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 revenue here at home, which will only strengthen our ability to rebuild from the COVID-19 crisis,” Cuomo said in the release.

With the governor’s plan, the New York State Gaming Commission will release a request for proposals to choose and license “a sports operator or platform” to provide mobile sports betting in the state. Cuomo said that entity needs a partnership with a currently licensed commercial casino. Moreover, Cuomo said that the commission will mandate that any party that runs mobile betting apps to have protections from addiction and abuses.

The news comes as the flourishing digital gambling or gaming space could make it through COVID-19 with fewer negative financial impacts than other industries amid a pandemic that has closed physical casinos.

A U.S. Supreme Court decision in 2018 enabled sports betting. It inspired 2019 laws that govern the space in 10 states and set guidelines in areas such as how digital casinos can operate or how sports betting would be taxed. The prior year had been expected to be gainful for online sports betting as it was the first one after the formation of the rules.