- An official study on the potential revenue for mobile betting in New York has been released by Spectrum Gaming.
- Lawmakers in New York are finally in favor of bringing mobile sports betting to the Empire State.
- The study projects a potential annual revenue stream of $100 million.
ALBANY, N.Y. – As New York lawmakers finally seem to be embracing mobile sports betting, analysts have begun predicting the economic impact of the market.
A recent study released by Spectrum Gaming estimates between $816 million to $1.14 billion could be made in sportsbook revenue, with the government taking in up to $100 million in tax revenue.
While these numbers are simply an estimate, it is not farfetched to assume the estimated annual revenue is possible. New York sports betting is already a major market even without mobile betting and local bettors have been clamoring for a regulated mobile betting market for some time.
Mobile Betting In New York
The Spectrum Gaming study is based on the assumption that the Empire State would run its mobile betting through the local casinos and not through the New York lottery, a concept that Governor Andrew Cuomo has been in favor of.
“Many states have done sports betting, but they basically allow casinos to run their own gambling operations, said Cuomo. “That makes a lot of money for casinos, but it makes minimal money for the state and I’m not here to give the casinos a lot of money.”
The long-awaited study examines the current state of New York sports betting with retail sportsbooks. The transition to bringing mobile betting would be fast as the Empire State already has multiple active sportsbooks in the market.
Major betting operators are already aligned with local casinos like the FanDuel’s partnership with Tioga Downs Casino Resort, BetRivers with Rivers Casino, DraftKings with Del Lago Resort Casino, and bet365 with Resorts World Catskills.
These retail sportsbooks all have successful mobile betting operations in other states, and will easily be able to integrate their systems in the New York market.
The study combines the profits potentially made from retail venues along with the influx of mobile sports betting in NY. The projections for the state revenue is between $72 and $99 million annually per the study.
This is much less than the $500 million in annual revenue for the state that Governor Cuomo is seeking from legalizing online sportsbooks.
As New York is in close proximity with other markets that host mobile betting, the potential revenue is often sent to neighboring states like New Jersey and Pennsylvania. Mobile betting in New York would have a major impact on those markets.
The study estimates the potential sports betting revenue based on the current New York sports betting market, comparing the other markets annual revenue, and making note of New York’s population of sports betting age residents.
The study also accounts for tourism in the state as NY is one of the most visited states in the country. Tourism has been down, however, due to the COVID-19 pandemic. The study accounts for this by looking at numbers from past years as well.
While this is just an estimate, it is built on months of extensive research, giving validation to the study. New York could very well rake in over $100 million in betting revenue annually once mobile betting launches.
News tags: Albany | Andrew Cuomo | Atlantic City | Lee Igel | mobile | mobile sports betting | New York | Robert Boland | Spectrum
Coming from a background in narrative-based writing, Giovanni strives to write stories that will keep the reader engaged. Although he does pride himself in being accurate, how the story is told is also very important to him. When he’s not keeping readers up to date on sports betting laws and legislation, you can find him writing and recording music, playing videogames, or engaged in heated sports debates with his friends.