Can Sports Betting Take Over New York?

Can Sports Betting Win Over New York?

New York's governor, Andrew Cuomo, has vested his interests in sports betting as a solution for the $3.1bn NY state budget deficit. His hope is that legalizing the activity will generate a substantial amount of revenue which could support the large budget gap.

NY Governor addresses the state

On Tuesday, January 15, 2019, Cuomo confidently addressed the State. He was positive about moving forward with sports betting in the upstate casinos and expressed certainty that it would generate activity. 

Moving toward legal sports betting in NY

The State's constitution must first be amended in order to move forward with legal sports betting in New York. The NYS Gaming Commission must also create regulations around the matter of betting and online gambling. Governor Cuomo's desire is to begin lighting fire under the regulator to get the ball moving with the inclusion of legal sports betting as part of the state's budget plan.

The NY casinos which currently offer legal and regulated sports betting are as follows:

  • Del Lago
  • Tioga Downs
  • The Rivers Casino
  • Resorts World Catskills

The law currently limits sportsbooks to these sports betting venues. However, once online gambling becomes legal in the Empire State, these locations will begin branching to online and mobile platforms as well. Soon customers can expect to see sports betting sites and mobile applications respectively.

Casinos prepare for sports betting

The casinos located in upstate New York are well prepared for sports betting. Partnerships have been made with many renowned providers including the likes of 

  • DraftKings
  • FanDuel
  • PointsBet
  • Bet365
  • Rush Street

Del Lago Casino and DraftKings

The del Lago Casino & Resort has partnered with top dogs, DraftKings, the second largest company in daily fantasy sports, to begin plans on a sportsbook at the establishment. One of the goals in this partnership is to create a sportsbook lounge in the respective casino along with online sportsbooks, should the state go ahead with legal sports betting. Eventually, once regulations are set into place, DraftKings plans to help the development of DFS contests to launch an online gaming app for del Lago Casino sportsbook.

As a well-known provider in Daily Fantasy Sports, DraftKings is no rookie to a project like this one. The company boasts more than 10 million customers and through its leading technology advances, they are well situated to profit from the New York market, just as they are currently capitalizing on the NJ sports betting market.

Jason Robins, CEO and co-founder of DraftKings stated that there are big money-making opportunities to be had in New York in regards to future sports wagering. He expressed his excitement of partnering with del Lago Resort & Casino to offer such a sports betting experience. His intentions are to go physical as well as mobile once the law permits.

A pleased Brent Stevens, co-chairman of del Lago claimed that the partnership with DraftKings would pair two largely recognizable brands, allowing a big step into the upstate NY market. He announced his enthusiasm for working with this provider to create a sports betting experience for sports fans.

Tioga Downs and Paddy Power Betfair

Tioga Downs also branched out and partnered with Paddy Power Betfair. This casino, located in Nichols, NY, recently opened its venue, featuring a hotel and entertainment center along with a large casino, offering slots and table games as well as horseracing. The partnership with Paddy Power Betfair is a move towards launching a FanDuel sportsbook at the NY casino. As one of the most established global sports betting companies,Paddy Power Betfair has now expanded its market reach to the US. It is reported that Paddy Power Betfair processed over $15 billion in sports betting wagers in 2017 alone.

Now that the company has combined forces with DFS company FanDuel, the team is expected to make a heavy impact on the legal sports betting market in the U.S. Kip Levin, CEO of Betfair U.S. announced his excitement of partnering with Jeff Gural and his NY and NJ sports betting partners. 

A plan for online gambling legislation

New York Assemblyman J. Gary Pretlow mentioned his plan to introduce new legislation in 2019 which would legalize online gambling as well. He believes there is a 90% chance of it finally passing in 2019.

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Sacha

4 March 2019

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