Authored by PlayNY analysts Eric Ramsey, Dustin Gouker, and Matthew Kredell, “The State of New York Sports Betting: An Examination of the Forces Shaping the Market,” explores the nuances of the New York market including:
“New York is a complex market, but one that the entire U.S. gaming industry is watching intently,” said Ramsey, who co-authored the report for PlayNY.com. “There are so many factors at play in the charge to regulate online sports betting, including Gov. Andrew Cuomo’s political fate,” he added
The debate on whether to legalize online sports betting and how to structure the regulations around it remains ongoing, with a resolution, at least for this year, possible this spring. But much could change before that happens. For one, two major factions have developed in the debate of how to structure online gambling. One, supporting an open market that would invite multiple private operators to compete in the state, a movement led by Assembly member J. Gary Pretlow and Sen. Joseph Addabbo Jr. The other, a state monopoly model with which New York captures the lion’s share of revenue by contracting with a single sportsbook operator, a move championed by Governor Cuomo.
According to research by the PlayNY white paper authors, an open market could draw US$37bn in bets, more than US$2.5bn in operator revenue, and more than US$300 million in tax revenue over the first four years after launching online sports betting. A closed market could draw US$7.5bn in bets, US$750m in revenue, but US$375 million in revenue for the state.
“The bottom line is we believe an open market will offer broader benefits for the state and its residents. But a closed market should produce more revenue for the state, and that is tempting for policymakers,” said Gouker, another co-author.
Source: GMB / G3 Newswire
