Communicated Content- Since New Jersey legalized online poker rooms and online casinos in November 2013 and since won a landmark ruling in the United States Supreme Court in May 2018 to legally regulate online sports betting, other states have flocked to follow suit.
The amount of tax revenue available from this blossoming industry was quickly seen as New Jersey generated $4.58 billion in handle in 2019. Its neighbor across the Hudson River, however, has had some trouble getting legislation passed. New York still doesn’t have legal online sports betting, and online casinos are far from the reach, but State Senator Joseph Addabbo is confident that a proposal from earlier this year will rectify this.
Sen. Addabbo does think that the bill for sports betting requires support before 2020 is out – and given the huge economic turmoil the COVID 19 pandemic is wreaking, New York could desperately use the revenue. However, some opposition to the bill does exist, and New York Governor Andrew Cuomo isn’t sure about the constitutionality of the bill.
Let’s look at the potential for sports betting in NYC.
Senate Bill 17D
Since New Jersey and other neighboring states Pennsylvania legalized online gambling and online sports betting, New York has sat back and watched as the revenue piles in. Sen. Addabbo, also the chairman of the Racing, Gaming, and Wagering Committee, has been a vocal proponent of statewide regulation, strongly advocating for Senate Bill 17D to be pushed through.
New York legalized sports betting in 2019, but bets can only be placed at upstate commercial casinos and tribal gaming properties, but not online. The same goes for casino games. Online casino gambling is also restricted in New York even if it’s a great source of income. Games such as poker and slots can be played online, and if you want to test them, they can be played even for free or you can turn them into real money games by depositing just as little as $10 but only on out-of-state websites, for which there are listings available at spots such as VegasSlotsOnline. In the same manner, they can also be played on mobile phones. Being convenient and popular as they are, these games play out as a great source of state income in the long run, as was seen in other states where they are legalized.
Online sports betting was floated in the New York State legislature in 2019 but met with opposition, not least from Governor Cuomo. He cites the New York constitutional clause stating that only seven non-casino gambling premises be allowed in the state, and therefore that online sports betting is essentially unconstitutional.
Should an amendment be required there will be a lengthy debate and much red tape. However, Sen. Addabbo remains adamant that New York needs regulated sports betting, especially with the economy in turmoil.
What sports betting would mean for New York
Given the runaway success enjoyed in neighboring states, New York could be sitting on a tax revenue goldmine if it passes online sports betting regulations for the start.
Sports bettors in the Empire State are taking their business across the Hudson into New Jersey, a fact that is making Sen. Addabbo impatient for legislation. Since the Garden State is a short train ride away, punters are flocking to play, essentially sucking revenue out of New York. Addabbo points to what extra revenue would mean for the state:
“This is the way that New York is losing revenue, number one,” he said, “we’re losing educational funding because a portion of our gaming wages goes toward educational funding.”
That’s not all increased revenue would help – New York has been particularly hard hit by the COVID 19 pandemic, both in terms of the high numbers of cases and deaths, and the flailing economy. The state could be missing out on amounts up to $1 billion dollars a year – money that could help stimulate the economy and help those who are struggling.
Will the bill pass?
Considering the bill has been bandied around for some time, and met with opposition and gubernatorial rejection in the past, and despite the constitutional reservations held by Gov. Cuomo, Sen. Addabbo is cautiously optimistic. He has worked hard on listening to comments and criticism and has redrafted the bill several times. Recent changes – the bill is on draft D at present – include licensing stadiums and arenas, and providing extra support and information about gambling addiction. This last point is one of contention within the state – however, Addabbo insists that gambling addicts will have less support and access to resources if online sports betting is not regulated.
In reality, the state is in need of funds, and this could reduce opposition to the bill in comparison with 2019. But it will reach the governor’s desk, so time will tell. In the words of the State Senator:
“I am optimistic. I won’t be happy until it’s actually passed and we’re on our way.”
Online sports betting has certainly been a winner for the states who have legalized it. And with New York’s reputation as a center of not only national but global sport, surely it is only a matter of time before legal betting comes to the Empire State.
