Forecasts by NY Sports Day indicate that the legalisation of online sports betting could yield up to US$900m in annual revenue and $108m in tax for the state of New York.
Should State Senate Bill 17D pass, each of New York’s seven retail casinos would be permitted to operate a mobile sportsbook, making the State one of the largest legalised online sports betting markets in the US.
The bill proposes a 12% state tax on mobile sports betting revenue, as well as a one-time $12m licensing fee paid by each operator. If added to a proposed revenue enhancement bill, online sports betting will be discussed in an upcoming special session about the state budget.
“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 traveling to New Jersey to place a legal wager. If New York legalises 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.”
Should the State permit two skins per operator, annual revenue projections would increase to $1.3bn. As such, New York could bring in $156m in annual taxes, and $168m in licensing fees from the 14 permissible skins.
Fisk added: “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. 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.”