The long wait is almost over. New Yorkers have spent a frustrating few years watching other American states enjoying sports betting. 2022 is going to be a landmark year because that’s when legalized sports betting finally arrives in New York state.
Soon players will be able to enjoy BetMGM NY promotions. all thanks to important changes that began three years ago. That’s when a landmark ruling was made by a US Supreme Court judge.
It had been the case that the Federal Government had the final say on whether a state would legalize betting on sport. After a long campaign, a breakthrough was finally achieved.
Now the situation is that individual states can decide for themselves what to do on this matter. The ruling led to one state after another legalizing sports betting, but New York has rather lagged behind others.
One key reason was the views of former governor Andrew Cuomo. He wasn’t keen on legalizing sports betting, well not initially. The arrival of Covid-19 saw the state’s budget being hit badly. Envious eyes were cast in the direction of states such as New Jersey.
They had led the campaign to change the rules and quick to legalize sports betting. That has seen them earn millions in dollars from tax revenue all thanks to gamblers placing wagers on sport.
Cuomo changed his mind on the subject but with a very strong financial leaning. If sports betting was going to be legal in New York, the state would receive a high amount of the profits. With Kathy Hochul now in charge the desire to get as much revenue as possible still exists.
It’s expected that mobile sportsbook operators will be required to give the state 51% of their profits. That’s the figure in New Hampshire but far higher than in some other states. For example, it’s only 13% in New Jersey and just 6.75% in Iowa.
Despite this, some of the very best sportsbook operators in the business are on their way to New York. December has seen a massive step forward as the clock ticks down to the launch of online sports betting.
Nine licenses have been given out with these including DraftKings, Resorts World, FanDuel, Wyn and BetMGM. Players will soon have to learn all the sports betting jargon as they place wagers.
It has been possible to bet on sport in the state for many years. In-person bets can be made but there’s been one big problem. The closest casino to New York City entails a two hour drive to Resorts World Catskills. That deterred many gamblers, so instead they crossed the Hudson River and made their way to New Jersey.
It’s estimated that a fifth of sports betting in that state is carried out by New Yorkers. That’s more revenue for New Jersey, so the legalization of online sports betting in New York isn’t such good news for them.
One concern is that if the sportsbooks must give so much to the state, it might see lower bonuses being offered to customers.
10-year licenses have been given out by the New York State Gaming Commission. As well as the high amount of tax to be paid on gross gambling revenue, the licenses don’t come cheap either. They must pay a $25 million one-time licensing fee.
You can see just why the state of New York is now so keen on legalizing sports betting. It’s seen as one of the most attractive betting states. New York just loves sport and there are plenty of teams to be placing wagers on. New Yorkers will finally be able to legally place bets on all those fights at Madison Square Garden.
The estimates are that annual revenue will be $1 billion. The annual tax revenue would be just short of half a billion dollars by the beginning of 2025.
Just when will the sports betting sites launch? When lawmakers passed the necessary legislation, the hope was for the licenses to be awarded by January 1. The big sporting event on the horizon is of course the Super Bowl. That may still be a possibility and would bring in a large amount of betting revenue.
The next step for those awarded licenses is to find a facility to house the servers required. Those locations then need to be approved by the New York State Gaming Commission who are going to be very busy. The servers must be in one of New York’s four commercial casinos. There’s more expense on the way as a $5 million annual fee has to be paid to the server-hosting casino.
Adam Greenblatt is the CEO of BetMGM. He’s delighted that a mobile sports betting license has been granted. He believes this will be “vital” to ensure “nationwide leadership in sports betting and iGaming over time,”
