The legalization of online sports betting could yield up to $900m in annual revenue and $108m in tax for the state of New York, according to projections by NY Sports Day.
The region’s entry into the area, which would see New York become one of the largest legalized online sports betting markets in the US, is pending the passage of NY State Senate Bill 17D. This would authorize each of New York’s seven retail casinos to operate a mobile sportsbook.
It is said that online sports betting could make it onto a proposed revenue enhancement bill, which lawmakers are expected to discuss in an upcoming special session about the state budget.
Senate Bill 17D proposes a 12 per cent state tax on mobile sports betting revenue, as well as a one-time $12m licensing fee paid by each operator.
“New York has a chance to become the biggest mobile sports betting hub in the US,” said Geoff Fisk, analyst for NY Sports Day. “New Jersey holds that position right now, and some of that comes from New York bettors travelling to New Jersey to place a legal wager.
“If New York legalized online sports betting, the revenue that’s going to New Jersey stays in New York. Considering tourism and state population, New York could host the most lucrative mobile sports betting industry in the country.”
Furthermore, should the state’s laws permit two skins per operator, those projections would raise to $1.3bn in annual revenue for the state’s online sports betting industry.
The state could bring in $156m in tax revenue yearly, and a total of $168m in licensing fees from the 14 permissible skins.
“All seven New York casinos have sportsbook partnerships in place, so those seven brands are locked in if online sports betting gets the green light,” Fisk added. “DraftKings and FanDuel already have a place in the New York market.
“Expanding to two or more skins per operator, however, could include brands like Barstool and PointsBet. The sports betting market would thrive with 14 or more brands in competition.”
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