Cuomo, lawmaker see different paths forward to legalize mobile sports betting in New York

(The Center Square) – One of the key supporters for mobile sports betting in New York is hopeful lawmakers and Gov. Andrew Cuomo can find common ground on finally allowing residents to legally participate in the popular gaming product while in the state’s confines.

Just before the governor gave his budget address, which included a reference to mobile sports betting, on Tuesday, the Senate Committee on Racing, Gaming and Wagering passed S. 1183, a bill sponsored by the panel’s chair, state Sen. Joseph Addabbo, D-Queens.

While both legalize mobile sports betting, that’s really their only commonality.

Addabbo’s bill, similar to one that passed the Senate a couple years ago, would allow the New York to legalize sports betting in a fashion most other states, including Indiana, Iowa and New Jersey, utilize. Casinos would be eligible for a license and they could also have a separate online app as a partner.

That means as many as 14 mobile applications could be available in the state. Addabbo told members there are also provisions to include tribal casinos, sporting venues and racetracks.

“It’s this kind of accessibility that’s going to, again, create the revenue needed in our state,” Addabbo said.

The bill’s current estimate for annual revenue is $79 million, which co-sponsor state Sen. James Gaughran, D-Northpoint, called a conservative figure. That would be achieved through a 12 percent tax on gross revenue from mobile operators.

Cuomo’s proposal would reduce the number of sports betting operators – perhaps to as few as one – and sharply increase the state’s portion of the revenue share. The state would select a provider or providers through a competitive bidding process.

That would be similar to how New Hampshire enacted sports betting. Through a solicitation, the state’s Lottery Commission chose to partner exclusively with DraftKings for both online and retail sports betting as the Boston-based gaming company offered to split proceeds evenly if it were the only operator.

According to information posted by New Hampshire Gov. Chris Sununu on Twitter, more than $300 million dollars was wagered in the state. He added that more than $10 million went to the state for education, which would put the revenue total at more than $20 million.

By comparison, New Jersey, which is the top sports betting state in terms of handle, reported more than $6 billion in wagers for calendar year. Revenues from sports betting totaled $398.5 million. However, the state’s share of that was slightly more than $50 million as online sports betting revenue is taxed at 13 percent. Revenues from retail sportsbooks, which makes up a small share of bets, is taxed at an 8.5 percent rate.

Cuomo wants more, much more, than that as he and other state officials stare at a multibillion dollar deficit in the years ahead. In his budget proposal, he estimates the state would get $357 million from mobile sports betting in fiscal year 2023.

“This is not a moneymaker for private interests to collect just more tax revenue,” Cuomo said in his budget address Tuesday. “We want the actual revenue from sports betting.”

Gaming analysts say New York, thanks to its population, would become the top sports betting state if it offered mobile betting. In a mature market, that could mean annual revenues nearing $1 billion.

Lawmakers and the Cuomo administration have until April 1, the start of the 2022 fiscal year, to reach an agreement on the budget.

On Wednesday, the Assembly’s version of the lawmakers’ bill passed in the Committee on Racing and Wagering. It is sponsored by Assemblyman Gary Pretlow, D-Mount Vernon, the committee’s chair.

Supporters there also prefer the lawmakers’ approach.

A01257 “is much better than the Governor’s proposal as it includes all NY casinos like @RiversCasino_NY here in Schenectady,” tweeted Assemblyman Angelo Santabarbara, D- Rotterdam.

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