A recent study from Eilers & Krejcik Gaming, funded by DraftKings Inc. and FanDuel, has found that New York residents accounted for nearly one-fifth of the total money wagered in legal sports betting in New Jersey in 2019. Of the $4.6 billion in bets, an estimated $837 million came from New Yorkers.
The study analyzed three scenarios for the introduction of legalized online sports betting in New York, aiming to maximize revenue while reducing the amount of money being wagered at illegal and offshore sportsbooks. The scenario the study expects to be most profitable, one with a lower tax rate and more sports betting operators, projects to bring in $166 million in annual tax revenue for the state.
State senator Joe Addabbo has sponsored a bill to legalize mobile sports betting in New York, hoping to help bridge New York's budget deficit with the projected revenue.
Gov. Andrew Cuomo, though, has said that it would require a change to the state Constitution (which could take until 2021 or later). His $178 billion budget proposal last month addressed the deficit elsewhere. Senator Addabbo has contested that no constitutional change would be necessary to bring legalized mobile sports betting into play, however, as long as the servers processing sports bets were located at casinos, where gambling is already legal.
Legislation to legalize mobile sports betting was approved by the state Senate in 2019, but it was not voted on in the state Assembly.
The study suggests that keeping the sports betting tax rate at 15% or below would maximize the share of the illegal sports betting market that the state would capture. It projects between $84 million (for seven sports betting operators) and $120 million (for 10) in licensing fees, with the rest of the projected revenue coming from the tax rate.
Each of the three scenarios outlined by Chris Grove, who wrote the study, projects at least $119 million in annual tax revenue for New York.
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Jason Schandl is not a FanDuel employee. In addition to providing DFS gameplay advice, Jason Schandl also participates in DFS contests on FanDuel using his personal account, username Jaymun. While the strategies and player selections recommended in his articles are his personal views, he may deploy different strategies and player selections when entering contests with his personal account. The views expressed in their articles are the author's alone and do not necessarily reflect the views of FanDuel.