New York is seeking proposals from sports betting companies interested in setting up mobile operations in the Empire State, The Wall Street Journal reported Wednesday (July 21). Aug. 9 is the deadline for proposals, which would be reviewed and acted on by the New York State Gaming Commission.
Gov. Andrew Cuomo announced a plan earlier this year to allow New York to join the ranks of 14 other states that permit mobile sports betting. The move is aimed at closing a $16 billion budget deficit in the wake of the pandemic. According to Lineups, 25 states — including New York — have legalized sports betting since a 2018 U.S. Supreme Court decision which allowed states outside of Nevada to permit sports wagers.
Mobile betting apps are in place in upstate New York only, according to lineups.com.
Cuomo said previously that the current online gambling structure encourages a substantial population of New Yorkers to leave the state to place online bets. A study found that nearly 20 percent of New Jersey’s sports gambling revenue was derived from New York residents, resulting in the state losing millions in potential revenue.
New York has permitted sports wagering since July 2019. Since then, the state has collected more than $28 million in total revenue, according to SportsBettingDime.com. Once mobile sports betting is in place, the state is expected to grow its revenue to more than $500 million for fiscal year 2022, according to the site.
According to a Bloomberg report, the sports gambling market is expected to reach $10 billion by 2025.
Companies in the online sports betting industry are looking to cash in on the opportunity, per the Wednesday report. DraftKings Inc. and FanDuel Group are expected to submit applications for consideration to the New York State Gaming Commission. Companies would need to pay New York a minimum of 50 percent of revenues and potentially more.
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