New York State is losing cash as a result of its decision not to legalize mobile sports wagering within the borders of the state. A new study performed by Eilers & Krejcik highlights the particular number to this loss, making it a more palpable one. The state coffers miss anywhere between US$203 million and US$286 million on an annual basis. FanDuel and DraftKings, leading fantasy sports companies, commissioned the study.
Grasping the whole picture and making sure that the estimations are linked to actual numbers is essential for the understanding of the impact. Non-existing online wagering offerings in New York is something that appears to deprive the state coffers of a substantial amount of cash. Precisely some US$203 million in the best-case scenario.
Online Sports Wagering in NY
The two daily fantasy sports leaders wanted to see a report on the money New York State loses while avoiding the legalization of online gambling. The two companies are leaders in the neighboring New Jersey gaming field offering online sports wagering and online gambling. This diversity makes it a more attractive arena for gambling for New Yorkers, as well as for the locals. New Yorkers wager some US$837 million on New Jersey sportsbooks.
FanDuel and DraftKings want to make it possible for New Yorkers to wager on sports events while also participating in online gaming on a daily basis. Eilers & Krejcik worked on a report on the subject, thoroughly reviewing the current situation, players’ trends and preferences, their regular gaming activities, as well as the amount that they wager on illegal gambling schemes. The worst-case scenario is that the state loses some US$286 million by hesitating.
The report issued recently points out that the way for this sum to be compensated is through sportsbook licenses that should amass a considerable amount of money. About 10 licenses are expected to be issued once the government gives a green light to online sports wagering and each of them would be able to guarantee US$12 million on an annual basis making their way to the state coffers.
The special report also proposes several approaches that would optimize the process of taxation and make it a more efficient one. Right now, the state budget has a deficit amounting to US$6 billion, but the most recent discussions Gov. Andrew Cuomo has had with the state lawmakers have not considered legalized online sports wagering a possible solution to this problem. It should be taken into account that online gaming in any form enjoys large popularity around the globe.
It allows players to participate in it whenever they feel like it without having to make their way to a casino venue for in-person sports wagering. This is the main reason why the four Upstate New York commercial venues are currently failing to reach their gross gambling revenue projections. Gov. Cuomo recently made it clear that using online gambling as a source of revenue would be an irresponsible move increasing problem gambling rates.
State Senator Joseph Addabbo is one of the main supporters of online wagering on sports events who made it clear that April 1 would be an important date. The date would see the final discussion of the state budget and Mr. Addabbo said that it would be the last chance of discussion on the subject. Past that point, the beginning of 2021 would offer the next opportunity for online gambling discussion on a state level.