Starting at 9 a.m. ET on Saturdays, you can make online sports bets in New York.
Four sportsbooks will be launched tomorrow – FanDuel, DraftKings, Caesars and BetRivers. New York will become the most populous state to host mobile sports betting.
If you pre-register before Saturday, you’ll receive $100 each in free bets on FanDuel and DraftKings. There will also be many post-registration promotions for new users.
Five other sportsbooks have been approved to run betting in New York but have yet to launch – PointsBet, BetMGM, Resorts World, BallyBet and WynnBet. Their launch is scheduled for the next few weeks.
But Saturday’s launch won’t include iGaming – things like online blackjack, roulette, poker and other casino games. Legislation signed late last year only allows online sports betting.
This is bad news for the sports betting involved. Generally, casinos make more money and much higher margins on table games than on sports betting.
In Nevada, in-person casinos reported that sports betting accounted for just 10% of their revenue last November despite a full month of NFL, NBA, NHL, Premier League, Champions League and UFC.
While sports betting accounted for $72 million in net revenue at Nevada casinos that month, blackjack accounted for nearly $125 million, while slot machines generated more than $328 million in profit.
Additionally, every bookie will have to pay an inflated 51% tax on all profits to New York State. This is encouraging news for New York residents, who will see education and social services – among other sectors – receive a buoyancy due to increased tax revenues.
For reference, New Jersey sportsbooks only have to pay about 13% taxes.
All this to say that it is in the interests of these sportsbooks to help introduce new legislation that allows table games and mobile slots in New York.
So when will online gambling come to New York?
The door is open to this possibility, but there is no precise timetable. Fortunately, there are not as many obstacles as in some other states.
Gaming attorney Daniel Wallach explained why in a tweet in December 2020 – New York doesn’t need a Constitutional Amendment for iGaming if the operators’ servers are in casinos. That’s how it works in New Jersey, which launched iGaming in 2013.
If you can legalize online sports betting in New York without a constitutional amendment by putting the servers in casinos, then that’s really not a leap to online casino gaming. The same principle applies. See, for example, New Jersey, whose entire iGaming regime works this way. https://t.co/S5AKujBbOy
— Daniel Wallach (@WALLACHLEGAL) December 22, 2020
New York lawmakers will likely soon see the potential of iGaming. Bettors lose much more with these online table games than with sports betting.
Sports betting involves more overhead and it is more difficult for customers to lose their money as quickly as possible at a baccarat table or slot machine.
As a result, New York State and sports betting would make a lot more money if mobile casino gambling were legalized. But there would be activist groups — and politicians — pushing back on behalf of the public.
In the meantime, mobile sport gambling will bring a lot of money to New York, which will then be reallocated to the people through government services.
New York has approximately 2.1 times the population of New Jersey, the state that generates the highest betting volume per month. In October, $1.3 billion was wagered in New Jersey
Overall, New Jersey has generated nearly $200 million in tax revenue since legalization in 2018. It has generated nearly $700 million from iGaming since its launch in 2013.
The Action Network conducted an analysis that showed New York missed an estimated $1 billion in tax revenue by not legalizing sports betting when New Jersey did in 2018.
Industry experts estimate that approximately 20% of New Jersey sports betting comes from New York bettors who migrate to place bets.
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